Previously I have posted Index Rating Indicator to help gauge the strong and weak index.
Now Its the Sectors.
This should help you choose sectors / Stocks within sectors, regardless of being a trend trader or contrarian. i.e. Trading with Strength or Against it.
Notice, At the time of me posting it.
The rally is supported heavily by XLK (TECH) and XLV - (BioTECH). Weakness from there would push the market down. Some cases the sectors rotate as well.
All In All, I use this to quickly pick stocks that are from stronger sectors to play pullbacks, or huge rally to play contrarian.
------------------------- YES I play both sides ------------------
One Last Information
Markets are classified into 3 Segments, Cyclical, Sensitive and Stable.
Stable - XLU, XLP, XLV
Sensitive - XLI, XLK, XLB
Cyclical - XLF, XLY, XLE
Knowing where the market money is flowing gives you a good edge.
Later I will post the composition of Sectors and the Markets Combined <B> Strength Index measured through Sectors <B> soon I figure out a way to make it presentable.
Hey, I really like that indicator. It nicely shows the rotation which is going on all the time. I'm just trying to figure out how to best use it to my advantage. Would you mind elaborating on what criteria you choose a stock to play using this indicator... Currently, P seems to be coming up but looking at all XLP stocks, most of them seem like they have been running too far already. I don't like to enter at highs. Thanks
UDAY_C_Santhakumar
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@tomste12345, Thanks for the requst, I will post a video of how I use this process.
tomste12345
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@ucsgears, I am excited to watch that.
tomste12345
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@ucsgears, Hey, I was wondering if you had a chance to make a video about that topic. If yes, please let me know where to watch it. If not no worries, but if you would have some pointers I would be more than happy :) Thanks mate!