[the_manassa_mauler]

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.

Marcus... Your point about finding an early leader w/in the sector first is intriguing & is something that I wish weinstein wouldve gotten into a little more in his book. Your take about seeing a sector just breaking into stage 2 yet leaving you out in missing the leadership w/in that sector wh/ may have already broken into stage 2 a few weeks or so earlier is salient if one is indeed wanting to invest in individual sector leaders early on the breakout.

In the context of that discussion, I have a couple of ques. I'd be interested in hearing your takes on. 

First thing, in regards to myself, let me briefly tell you what my goal is. Weinstein's methods really appeal to me b/c its as objective & non emotional a method as ive seen. furthermore, its s tangible, real time, supply and demand reaction to the market w/ tested charting patterns. that seems more important and viable then just the fundamental health of a companies financial numbers. Ive got burned too much in the past by just going solely on a good company but getting burned by mistiming the investment or the greater forces of the market movements itself. Its why I went to weinstein & here. So w/ that, the questions:

1. part of my strategy is to better invest in my 401 retirement fund & roth ira. There, I am looking mainly to focus on an investment (using weinsteins terminology), not trading strategy. And entity wise, I'm leaning more towards etf's, mutual funds & large cap industry leaders to invest w/. But, I do want to focus on sectors w/in those investment vehicles. Since so many sectors have already left the stage 2 station weeks ago (like technology), would it be wiser for me to look at the sectors that are just now getting ready to initial break out into stage 2 (the laggard sectors in a sense like lets say utilties)? or would it be wiser to wait for a pullback in the leading sectors to healthy MA retest and then make a continuation play?

2. I've researched this site a lot the last week and really like the info. I have a ques wh/ pertains back to ques 1. I looked at the market breadth section of the site & found it great. In particular wh/ really seemed to help w/ ques. 1, is your 2 sector tables of sectors above the 150 MA.  That seems ideal esp for narrowing down to wh/ sector to allocate into w/ sector mutual funds or etf's. The last one I could find however that you did was the june 14th tables. Do you update more frequently on a weekly basis somewhere else? if not, is there somewhere that does this also?

3. I also have an individual account. In this account I want to be more aggressive and use a trader strategy focusing on individual stocks. And as you pointed out, I would like to find early leaders w/in sectors, before the sector even breaks out as a whole. What is my best source to go to to ferret out those stocks that are very close or just broke out into stage 2?

4. lastly, If im reading your daily update correctly, you seem bullish right now on the broader markets (sp 500 etc). Weinstein mentioned in the book the effect of an election year and how it is usually bullish. Even w/ covid, this seems to be falling into place. Do you feel technically from what you are seeing now, that at least until late Oct., that the overall markets can maintain bullishness?

thanks again for your service & time into it, you have a new fan.