The heat map shows leading sectors, as rotation becomes apparent and color changes depict improvement. It also shows out of favor sectors, as money flow rotates from them and into the next winning stock picks. The process is very intuitive and consistently yields excellent results.
As we can see, media is receiving its share of attention, as well as aerospace, technology, semiconductors and telecom.
Moving down the list, we also see food and beverage stocks are receiving some attention. Staples have been improving, though Monday saw some profit taking. We’ll pass on retail as well, since that industry group has been the Minister of Pain.
Aerospace Industry Group
Aerospace has many winners, as a quick scan will reveal. Considering earnings season is in full swing, we could play the ETFs for now. PPA, XLK, FDN and XSD are improving, so consider these sectors when choosing your next winning stock picks.
Once earnings are out of the way, it will be safe to enter into stocks that have setup proper bases. Many of the leaders are due to report earnings over the next few days, so trade the ETFs only.
Use this workflow, in addition to the top down approach to trading and investing and you’ll soon be trading like a professional in no time at all.
In you’d like to learn more about strategy based trading, please consider joining us at The Closing Print for additional information.