Page 491 - How to Make Money in Stocks Trilogy

How I Use IBD to Find Potential Winning Stocks 361

have discovered they need to take charge, get serious, and learn the basics
of sound, successful investing. You can do far better in the future.

IBD Mutual Fund Index
There is another unique feature on page B2 you can’t find in other daily
publications—the “IBD Mutual Fund Index,” where we pick two dozen
leading growth funds and show their composite performance in a graphic
display. I use this as a supplementary index because it is in a way a giant
advance-decline line of some of the better funds with a combined 1,000 to
2,000 or more stocks owned among the 24 funds. When I’ve seen a classic,
well-formed cup-with-handle pattern in this index, preceded by a strong
prior uptrend to the pattern, the index and the market have almost always
moved up.

© 2009 Investor’s Business Daily, Inc.

IBD’s 197 Industry Sub-Group Rankings
On this jam-packed page, we also have IBD’s “197 Industry Sub-Group
Rankings.” This list shows a composite rating for each sub-group and
each sub-group’s change from the previous day, plus where the group
ranked three and six weeks and seven months ago. The top 20 and bottom
20 sub-groups are circled because they represent the best- and worst-
performing industries.
By now, you should know I am not going to own anything in the bottom
20 because we’ve proven over many years that these industries are going to
be having a lot of trouble. On the other hand, we know that most of the lead-
ing areas of a positive market will show up in the top 20.