[fabi470]

What are your methods of analysis sector strength?

Mine are:
- SCTR rank (Stockwatch) - the higher the rank, the stronger the sector (weekly basis)
- SCTR rank weekly change (Stockwatch) - the higher the change in SCTR rank the stronger the sector. I do it on weekly basis and try to nail the sectors that are moving up on the SCTR rank list.
- industry charts (Stockwatch) - I try to estimate the strength of a sector by looking how its chart looks like, i.e. if 10MA > 20MA > 30MA, recent breakout, volume, RS, etc. I try to emulate Stan's ranks (2B, 2B+, etc)
- New Highs (Stockwatch, Finviz) - the sectors with the relative highest number of stock on 52-week highs are the strongest, weekly basis

Anything else you could recommend?

I really like your methods of finding the "best" sectors and will probably implement 1-2 ideas of yours into my screening process.

But i have 2 "problems"/questions with your approach: - (why) do you only focus on sectors? Because i think that the industry group is more important than the sector (nevertheless the sector in which the industry group is placed shouldnt be the worst one)
- you have >4 different methods to analyze the sector strength. I can imagine that you will get a lot of divergences / different results. So you dont really profit from that many methods, do you? E.g. there are about 11 sectors; with your method of combining all 4 techniques you will get different results, maybe 7 different sectors. So you did just eliminated about 4 sectors.

I hope you can understand what i mean. I would be happy about a feedback from you, and if you have these problems, how you handle them.

As i dont want to only "critize" other methods: i have not finished my final process of finding the best groups yet, but i guess it will look similar to this: which group is outperforming the S&P500 on a 3 month period? This is a crucial aspect, Then i will look at these outperformers and watch, which groups are gaining strength over a 1-week and 1-month period. In addition to that i may look what the specific sector looks like, how the 12-month performance looks like and if the group is in stage 1/ 2 (i use the minervini Trend template)

Maybe this helps you out a bit (i hope so!) and i would be very happy about a feedback as well!