Page 461 - How to Make Money in Stocks Trilogy

Picking the Best Market Themes, Sectors, and Industry Groups 331

7. Autos
8. Oil
9. Textiles
10. Containers
11. Chemicals
12. Appliances
13. Paper
14. Railroads and railroad equipment
15. Utilities
16. Tobacco
17. Airlines
18. Old-line department stores

Industries of the present and future might include
1. Computer medical software
2. Internet and e-commerce
3. Laser technology
4. Defense electronics
5. Telecommunications
6. New concepts in retailing
7. Medical, drug, and biomedical/genetics
8. Special services
9. Education

Possible future groups might include wireless, storage area networking,
person-to-person networking, network security, palmtop computers, wear-
able computers, proteomics, nanotechnology, and DNA-based microchips.

Tracking Nasdaq and NYSE Stocks Together Is Key
Groups that emerge as leaders in a new bull market cycle can be found by
observing unusual strength in one or two Nasdaq stocks and relating that
strength to similar power in a listed stock in the same group.
Initial strength in only one listed stock is not sufficient to attract attention
to a category, but confirmation by one or two kindred Nasdaq issues can
quickly steer you to a possible industry recovery. You can see this by looking
at the accompanying charts of home builder Centex’s OTC-traded stock