Top Equity News loves it when the stock market tells investors exactly what to do. This week’s sector selector is as clear as the water at Anakena Beach, Easter Island.
Growth stocks, large, medium, small, it doesn’t matter; the charts say buy them all. Value is on the other side, the pictures say they are going to die. Maybe not die, but looking like value stocks of all market-caps will underperform in the near to intermediate term.
Wall Street must really believe the economy is going to pick up, or they think the fed has its finger on the QE3 trigger. Growth stocks tend to outperform when the economy starts to recover and GDP gets hot.
TEN would suggest focusing on growth stocks i.e. high P/E, above average earnings growth, big betas… from our buy lists.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Leisure Goods
Healthcare
Exploration & Production
Personal Goods
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Aerospace
Consumer Electronics
Clothing
Computer Hardware
Industrial Machinery
Paper
Recreation
Forestry & Paper
Durable Household Goods
Technology
Tech Hardware
Travel & Tourism
MATURE SELL: industries that have under-performed and based on their current chart patterns and could continue to lag:
Basic Resources
Beverages
Coal
Personal Products
Food & Drug
Electricity
Gold Miners
Pharmaceuticals
Gas Distributors
Tires
Gas & Water Utilities
Utilities
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Industrial Transportation
Reinsurance
Marine Transportation
Multiutilities
Publishing
Pipelines
Railroads
Sector Selector: Where to Make Your Money Grow is an article from: