The Beginner's Guide to Finding Explosive Stocks Using Sector Rotation
Introduction (0:00 - 0:48)
Welcome and invitation to subscribe/comment
Overview of today's topic: Sector Rotation
Sectors vs. Industry Groups (0:48 - 1:48)
Defining sectors and industry groups
Importance of drilling down to find hot trades
Using finviz.com Screener (1:48 - 4:32)
Navigating to the screener
Setting criteria for liquidity and movement
Identifying the strongest sector (Communication Services)
Narrowing to strongest industry group (Internet Content & Information)
Finding Breakout Candidates (4:32 - 9:18)
Looking for 20-day new highs
Filtering for positive closes and 1%+ gains
Analyzing charts for breakout setups
Importance of candlestick patterns and breakouts
Identifying Smart Money Trails (9:18 - 12:15)
Screening for 2%+ intraday ranges (big green candles)
Combining 20-day new highs with big ranges
Semiconductors emerging as a hot industry group
Potential semiconductor trade ideas (TSM, NXPI)
Conclusion (12:15 - 12:48)
Recap of the scanning process
Importance of practice for successful trading
Introduction:
Discover how to leverage sector rotation strategies to identify explosive stock trading opportunities before they happen. This beginner-friendly video covers a step-by-step process for scanning stocks, analyzing trends, and capitalizing on emerging momentum plays through finviz.com.
Sectors vs. Industry Groups:
To find the hottest stocks, it's crucial to understand sectors (broad market categories) and drill down into industry groups (sub-sectors). This allows you to pinpoint which areas are experiencing smart money inflows and maximum upside potential.
Using finviz.com Screener:
Walk through using the powerful (and free) finviz.com stock screener. Apply specific liquidity and volatility filters to isolate tradable candidates in the current strongest sector and industry. Narrow your watchlist to a handful of promising setups.
Finding Breakout Candidates:
Scan for stocks making new 20-day highs as an indicator of building momentum. Further filter for sustained intraday gains of 1%+ and analyze charts for clean breakout patterns above resistance levels. Identify early entries before major moves.
Identifying Smart Money Trails:
One telltale sign of institutional smart money interest is a stock with a wide intraday range (2%+) and a strong closing price. Combining this with new highs highlights stocks experiencing committed buying from deep-pocketed traders.
How to Scan for the Top Stocks to Buy Using a Sector Rotation Trading Strategy. In today's episode of Stock Trading for Beginners we review my step-by-step process for finding stocks to buy now.
A comprehensive guide on how to use sector rotation as a trading strategy, how to perform top-down analysis, and how to use a stock screener and technical analysis to identify potential trades.
Sector Rotation: The concept of sector rotation, which involves shifting investment assets from one sector of the economy to another. How to identify stocks with the greatest chance of following through.
Top-Down Analysis: The importance of top-down analysis, which involves looking at the market as a whole rather than focusing on individual stocks. This approach can help traders identify trends and avoid common mistakes.
Stock Screening: Pete demonstrates how to use a stock screener to identify stocks that have made a new 20-day high and have increased by at least 2% from the open. He emphasizes that these stocks are likely to be where the "smart money" or institutional investors are moving.
Technical Analysis: How to use technical analysis to identify breakout stocks. He explains that these stocks are likely to have large green candles, indicating strong buying pressure.
Sector Analysis: How to analyze sectors to identify which ones have the most stocks meeting the criteria. He shows that the communication services sector has the most stocks that are up, have increased by at least 2% from the open, and have made a new 20-day high.
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These YouTube stock market live stream videos are for financial education purposes. It's up to you to consult your financial advisor to make the final decision before you decide which stocks to buy
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