I'm a sucker for reading material and author's who are willng to share their investment styles and what has worked and not worked for them in the past. Right now I'm reading "The New Day Trader Advantage," by Jon D. Markman. In his book, he reminds us investors/traders about trend and market momentum: (1) A stock's sector can account for up to 50 to 60 percent of its movement, up to 20 percent from market cap and valuation group, 10 percent from its region, and the remaining falling to the discretion of the investee.
With all that in mind, I typically research the Monday edition of Investor's Business Daily for its 197 Industry Sub-Group Rankings, which is based on 6-month price performance. The current groups making up a majority of the top 20 are: Oil & Gas, Machinery, Metals, and Chemicals. With all this mind my focus has been in the Chemicals and Metals arena, specifically RIO, AGU, and SLT. I also like the fact that each of the afforementioned stocks are foreign based: RIO (Brazil), AGU (Canada), and SLT (India) Right now, I only own SLT, but waiting for some pullback on RIO and AGU before getting back in. Just a few of my thoughts. Anyone else willing to share what works for them? HAGO Justin
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