Top 5 Industry Groups
Every weekend, Pat scans, sorts and reports on the Top 25 Industry Groups for our VIP Members. There are 197 Industry Groups, as defined by Investors Business Daily and Bill O’Neil. We look for stocks in the top, leading, groups because that is where the stocks with the greatest moves begin. Fifty percent of a stock prices move is a result of the industry group it is in.
We watch for rotation of stocks, and subsequently money, into higher ranking groups. You and I can’t move a stock’s price; we need institutional buying to do that; paying close attention to Industry Group rotation leads us to know which groups are coming into favor with institutions.