[isatrader]

Hello,

I think I have a fair handle on identifying the stages, and am decent with breakouts.  My question is, how do you all go about creating the watch list of stocks at which charts you look?  I have some sector ETF's that I'm going to be including, but I'm not sure the best way to pick the stocks?  Once you identify winning sectors/industries, how do you narrow it down from there?

Thanks!

Tom

I actually do it the other way round. I focus on scanning for individual stocks first, as the strongest sectors / industries are easy to spot from the amount of stocks setting up or breaking out in those sectors. But to catch the leader in the sector, you have to get into that stock before the rest of the sector becomes more obvious that a move is happening.

So I find the best looking individual stocks, and then when one stands out I do the due diligence on the rest of the stocks in the sector. As if one is breaking out into Stage 2 on heavy volume and all the other good stuff that we look for, and then the other stocks in the sector are only a little bit behind in late Stage 1, and starting to setup themselves. Then the odds are good that there will be a move in the sector. So I'll try to buy into the leading stock.