Sector Performance Review: Making It Look So Easy Requires A Lot Of Work

(By Rich Bieglmeier) Investing can be like golf. The pros on TV make it look easier than it really is. However, unlike the PGA Tour pros, most on screen "stock gurus" underperform the market.
 
Many studies iStock has read suggest that being in the right sectors and out of the wrong ones help portfolio performance. Generally speaking, the top performing sectors of the last few months tend to outperform in tomorrow's market, as well.
 
What we like to do is compare sector performance to the S&P 500. The index is the universally accepted measuring stick that separates the million dollar paychecks from weekend hackers.
 
Do-it-yourself investors should make it a routine to identify the hottest locations in the market. If you don't have the time and trust iStock, you can just pull up an URL here. The workflow for identifying potential buy candidates, or other investing strategies, could look like this:
 
Make an educated guess on the overall market's likely direction - identify sectors with positive/negative performance traits – monitor stocks within targeted sectors for buy/sell signals – check anticipated news flow i.e. earnings – review fundamentals and financials -  determine max loss – execute trade and put in stop loss – monitor price performance and new developments – wash, rinse, and repeat, repeatedly.
 
Without question, it's a daily task that requires a lot of time, discipline and dedication. That's why, despite most failing to outperform the S&P, the pros make it look so easy on TV.
 
In our newsletter, the i On the Market, we do our best to determine the market's next move, here, you will find the sector review, and we will identify a stock or two that's to our liking, but it's really up to you to make it work to fit your comfort level.
 
For those of you who don't get our newsletter, our models say the uptrend remains intact, for now, but the ride could be bumpy. Here is step two, our sector performance review. Later today and tomorrow, we will focus on a name or two from the bull lists that iStock believes are worthy of more attention.
 
EMERGING BULL: Industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
 
Industrial Transport
Medical Supplies
Healthcare
Trucking
 
MATURE BULL: Industries that have outperformed and their charts suggest the above average returns could continue:
 
Biotech
Computer Hardware
Broadline Retail
Real Estate
REITs
Railroad
Tobacco
Water
 
 
MATURE BEAR: Industries that have underperformed and, based on their current chart patterns, could continue to lag:
 
Electronic Equipment
Auto Parts
Gambling
Commercial Chemicals
Telecom Equipment
Container & Packaging
Marine Transport
Restaurants & Bars
Semiconductors
Software


 
EMERGING BEAR: Industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
 
Technology (not good for the long-term health of the market if it lasts)
Computer Services
Home Improvement