From time to time, I will post results of my scans regarding industry and sector analysis.
How to read these charts:
- Colors are read from right to left as money flows into an industry (red on right to green on left)
- The numbers – 100 for example – mean percentile of industry groups (in terms of institutional money flow)
- The implications are that industries that are strong will remain strong (and vice versa)
- From industries, you will examine leading stocks and study possible relations among groups
First, the Top Industries (in terms of institutional money flow) over the last three months:
Processing Systems has been in the 100th percentile for the last three months, followed by Life Insurance.
Next, the Bottom Industries in terms of money flowing Out of the industries:
Aluminum, Residential Construction, Building Materials, and Home Furnishings have been in the bottom percentile over the last three months.
Also, the industry analysis can be used to identify money flowing into or out of an industry group:
In this case, we are viewing money flowing OUT of these industry groups – remember, the chart is read right (past dates) to left (recent dates).
Often, you can find some stealthy trade candidates beginning new uptrends or downtrends before they become at the top or bottom of industry leadership (read “Before the herd catches on”).
Weekends are great times to study the broad market and also sector and industry institutional money flows (and analysis) to set up swing-trade or position trade candidates, provided the stocks have chart patterns or price performance (trends) you are comfortable trading or investing.
Industry Analysis Charts provided by Prophet.net.