Geez...what the hell does that guy know? lol!
I do find sector analysis quite useful.
Stocks trade in sector, trading a stock in a winning sector does not guarantee success.. In fact, i have found that as I move down my list of participants in a peforming sector that I gravitate towards the laggards. By definition, laggards are that and have no assurnaces of catching up. Infact as the market drifts or profit taking comes in, they might move significantly lower.
How many times have you seen IBM, DELL and HWP have great days, watch CPQ drift, only to see CPQ tank when IBM, DELL and HWP face profit taking.
Nonetheless, orienting screens by sectors lets me know conclusively where money is going and where its not. Its only one step in making successful trades.
I will try to put some sectors up here and players in the field. Then perhaps we can take each sector, as time permits and break down the correlation between the players.
Since irby started this thread and likes tech, as do most of us for the volatility for trading, lets start there.
A few of my tech sectors to start with, in order as on my screen:
1. Disk Drives- SEG, QNTM, WDC, RDRT, KMAG, APM,HTCH,HMTT,EXBT,IOM,JTS
2. SEMIS & SEMI Equip - INTC, AMAT, DS, NSM, AMD, KLAC, NVLS, SIII, CY,SFAM
3. Box Makers - DELL, IBM, HWp, CPQ, DEC,MUEI, GTW
4. memory - MU, TXN, INTC, Cy
5. Networkers - CSCO, COMS, CS, FORE, XYLN, SHVA
6. Solutions Providers - EDS, MICA, VST, DEC
Lets start there. Thats the list. The question is, how correlated are the players and can a move in one lead to a move in a laggard.
I will try to add what I can to this thread. I am pretty tight as it is with the Trading Desk thread, and other stuff going on, but be patient and we can definately develop a thread useful for improving our success at trading.
Regards,
Steve@yamner.com
yamner.com |
