How to find sector leaders with the 52 week high and rising volume
In the search for stock ideas and new market trends, it’s worth paying attention to the biggest moves at an industry sector level. Targeting sector leaders with strong price strength, hitting new highs on rising trading volume could put you on the trail of the market’s rising stars.
When it comes to using sectors in stock research, it’s worth considering how the classifications work and the ways investors can use them.
World stock markets and data suppliers classify equities by industry sector. Grouping stocks like this makes it easier to understand what they do, and makes comparisons between them more meaningful. There are 10 high level sector groups (11 in many parts of the world) which together account for more than 200 industry classifications.
CyclicalsSensitives DefensivesBasic MaterialsHealthcareIndustrialsConsumer CyclicalsConsumer DefensivesEnergyFinancialsUtilitiesTelecomsReal Estate (RoW)Technology
Modern portfolio theory will tell you that diversification helps to manage risk - and industry groupings are one way of doing that. Holding stocks across a range of industries can balance your exposure to different areas of the economy. Those groupings can guide you on the nature of the businesses - and how you might expect your holdings to behave in different economic and market conditions.
Generally, cyclical sectors do well in strong...