Currently, all sector funds have bearish long-term trends and no fund is rated BUY.
The goal of the fund ratings page is to follow the short-term trends of investments that are not only long-term bullish, but also outperform the market, and show strong momentum.
First, we start with the "bullish leader" investments that are highlighted in blue on the momentum screen page.
Next, we analyze their short-term trends and rate them BUY, SELL or HOLD, accordingly. All other sector funds are rated SELL.
When a new investment trend gets under way, we classify the corresponding sector fund as “emerging”.
If the strong performance continues, the fund will be designated as “advancing”.
The advancing stage can last for several months in a strong bull market. That’s why we also keep track of short rallies and even new highs.
Eventually, the advance will reverse and the short-term trend will change to either “pullback” or “correction”, depending on the severity of the decline.
What to look for? The most profitable sector investments will progress in multiple "waves" of advance and pullback, which makes it easier to build up a larger investment. For example, the first investment position can be established when the trend is still new and additional investments can be purchased in the same sector fund when the long-term trend gets re-confirmed after a pullback. Go to the sector selector to see the current trade ideas.
© 2019 Axiomix, Inc.
Axiomix, Inc. is not a registered investment adviser. The material provided on this website is for general informational purposes only and is not intended as investment advice. Past performance does not guarantee future results.