January 7, 2015
Trades & Tutorials
By Geoff Bysshe
One of the great way to approach the new year is to quickly identify any industry group or sector ETFs that are on the move, because often times trends will shift or accelerate in the beginning of the year and last for months.
Catching these leading sectors enables you to find great trades in ETFs that track them and stocks with in them.
Below you’ll find a screen shot of the Sector Summary page in little big view as of the close on 1/7/2015. The reason I’m highlighting this page and its last column on the right today is because this is a simple way to find leading the sectors at the beginning of the year.
Since the market sold off right from the start of the year and every sector in that list was negative, it has made it really easy to spot the first ones to turn up on the year! Here they are. Today is the first day we’ve seen green on this screen and that should grab your attention (if you know to look for it).
Another pattern worth noting is that this table is sorted by the 6 month percent change, and now that you know that you can see that the sectors that have turned around the quickest are the same ones that have been the strongest for the last 6 months. And their all in bullish phases.
If you’d like to see the video I did in the blog area last week that explained this same concept use this link - the title of it is “Early January Sector Trend Trading”.
