Industry Groups
All stocks are classified into a unique array of Industry Groups. Each Industry Group reflects the average characteristics of the stocks within the group. This information is displayed conveniently at the bottom of the Stock Viewer screen for the particular stock that is highlighted. Industry Groups may be sorted, ranked and graphed in the same fashion as individual stocks
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The Power of Group Strength
Perhaps the most successful method of making money in the market is to buy top rated stocks in the timeliest Industries. Thus, one would identify the Industries with the highest Relative Timing ratings, and buy the stocks in those Industries with the highest ranking by VST-Vector. The power of group strength is so great that it is often better to buy a weak stock in an Industry with rising RT than a strong stock in an Industry with falling RT.
Buying stocks in the Industries with the highest percentage of ''B'' REC’s is also a very useful Strategy. These Industries invariably have high RT ratings. ProGraphics v6.0 gives the number and percentage of Buys, Sells, and Holds for each data set you may be using.
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Industry Group and Business Sector Rotation
A very effective Strategy is to track Industry rotation on a week-by-week basis. Invariably, the hottest Industries cool off and the coldest Industries warm up. Therefore it pays to watch both the top 30 and the bottom 20 Industries ranked by Relative Timing. Get out of Industries in which the RT is going down and into Industries with rising RT.
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Building (Residential\Commercial) Industry Group
VectorVest classifies 8,186 stocks into 190 Industry Groups. The Building (Residential\Comml) Industry Group contains 26 Residential and Commercial Builders, many of which either assist customers with financing or provide it themselves.
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Financial (Mortgage Services) Industry Group:
VectorVest classifies 8,186 stocks into 190 Industry Groups. The Financial (Mortgage Services) Industry Group contains 26 Mortgage Services Companies, which either assist customers originating, purchasing, selling or servicing mortgage loans of a variety of credit quality. |
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Friday, March 23, 2007 |
Climate
The Federal Reserve left interest rates unchanged at 5.25% for the 6th consecutive time at last Wednesday's FOMC meeting. Indeed, their post- Sentiment gauge fell to 26 from February's level of 39. A 15-year low of 30 was hit last September. New housing starts jumped 9% in February to an annualized rate of 1.526 units after January's 14.3% decline. Building permits, however, fell for the 12th time in 13 months. Existing home sales rose 3.9% in February to a 6.69 million unit annualized rate. It was the biggest gain since March 2004. The gain was attributed to mild weather in February. Hmm, last week we were told that retail sales were weak due to harsh weather in February. Go figure. The Conference Board's Index of Leading Economic Indicators fell 0.5% last month. It was the largest drop in a year and suggests that the economy will grow at a slow to moderate pace.meeting statement was revised to imply a more accommodating interest rate policy.
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