RE: Stage Analysis Beginners Questions
(2021-05-29, 08:34 PM)Lebo44 Wrote: The problem is that currently 90% of the sectors are in Stage 2 or in Late Stage 2 in my opinion. Only Utilities seems to be lagging behind. So my assumption is that the groups that are strengthening (rising in the ranking) could be also these groups still in the middle of Stage 2 (or early Stage 2) while other groups are just weakening (f.e. transitioning slowly to late Stage 2/early Stage 3 or just congesting gains/consolidating).
Yep, agree. Which is why Gold miners is the stand out of the RS risers over the last month, as Gold is recovering into Stage 1, while the group is moving into early Stage 2 again, and has got a few leading stocks breaking out in the Stage 2 again, with most of the rest in the group in Stage 1 and starting to shape up. So it's this kind of thing that we look for with the group RS, as it's early in the move and so you can watch stocks and potentially catch their Stage 2 breakouts at the ideal entry point if it comes in the coming weeks / months.
And this week groups like the Semiconductors and Aerospace were strong risers for example. So in Semiconductors you might notice Stage 2 continuation breakouts in major stocks like NVDA ahead of the group which is in Stage 3. So could be an early sign that it too and hence the rest of the stocks in the group will make continuation moves to new highs also. So it draws my attention to that group for deeper study of the individual stocks.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.