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Millionaire Now! by Larry Nusbaum

This blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth".

10 Best and 10 Worst Performing Industries (week ending 10/7)

Posted on 10/08/2006 09:59 AM | Link | Post Comment
From msn Money Investing:

10 Best Performing Industries
Industry- -% Change One Month

Special Eateries : 19.4%
Electronics Stores : 17.0%
Major Airlines : 14.9%
Auto Parts Stores : 14.8%
Home Furnishing Stores : 14.4%
Music & Video Stores : 13.2%
Apparel Stores : 13.0%
General Entertainment : 11.7%
Investment Brokerage - National : 11.6%
Networking & Communication Devices : 11.6%


10 Worst Performing Industries:

Silver : -13.7%
Drug Stores : -11.9%
Medical Practitioners : -9.1%
Gold : -7.2%
Medical Laboratories & Research : -6.9%
Copper : -6.3%
Oil & Gas Drilling & Exploration : -6.0%
Industrial Metals & Minerals : -5.9%
Specialized Health Services : -4.9%
Aluminium : -4.9%

note: click on industry for specific names.

Industry trends usually continue for several months, so MSN's list of the past month's 10 Best and 10 Worst Performing Industries should give you some investment ideas. But, be sure to wait until a sector is on a Point & Figure "buy signal" before purchasing (and the market is above the 200 DMA ).

According to Benjamin F. King in his “The Latent Statistical Structure of Securities Price Changes,” 50% of a stock’s price movement can be attributed to the overall movement in the market, 30% to the movement in its sector and only 20% on its own. So, if you must pick individual stocks, use fundamental analysis for stock selection and technical analysis for the timing of purchasing or selling. Do not ignore market risk, however.

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Last month, Precious Metals, Oil & Oil Services sectors gave a Point & Figure sell signal. I remain long one energy name: GW

With the help of this ETF screen, you can gauge which sector the money is flowing to and which exchange traded fund is making cumulative new highs.

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