Sector Scan for Stocks - The Wizard

[Pages:64]TheWizardUniversity

SECTOR SCAN FOR STOCKS

TheWizardUniversity

SECTOR SCAN FOR STOCKS

The Wizard's Sector Scan is our most advanced strategy and is designed for experienced investors. The Sector Scan helps you find the groups - and stocks within them - that are most likely to move first, fastest and farthest. (Please note that the Sector Scan only applies to stocks - not to ETF's.)

The Sector Scan allows you to:

1. For Buy Signals: Identify the strongest sectors and industries - the ones that are most likely to move up furthest and fastest - and then find Buy Signals on the strongest stocks within them.

2. For Sell Signals: Identify the weakest sectors and industries - the ones that are most likely to drop furthest and fastest - and then find Sell Signals on the weakest stocks within them.

This guide is broken into 4 parts:

Part 1: What are Sectors and Industries?

How Sectors and Industries help you pinpoint your investing.

Part 2: The Sector Scan Tour

An overview of the Sector Scan feature, its features and tools

Part 3: Finding Buy and Sell Signals

How to find the best stocks within the best sectors and industries.

Part 4: Viewing Open Positions

Viewing open positions with the Sector Scan.

Part 5: Three Strategies for Investing with Sectors

The three ways of using The Wizard's Sector Scan

TheWizardUniversity

SECTOR SCAN FOR STOCKS

Part 1: What are Sectors and Industries?

How Sectors and Industries help you pinpoint your investing.

TheWizardUniversity

SECTOR SCAN FOR STOCKS

Sector and Industries are Categories

There are over 10,000 stocks trading on U.S. stock exchanges. Each day, The Wizard scans well over 9,000 of these stocks. Any way you slice it, that's a lot of stocks.

To make them easier to identify, stocks are grouped into categories. There are two types of categories.

Sectors

A sector is a category of stocks that are grouped together by their general industry. Some examples of Sectors include:

1. Computer and Technology 2. Utilities 3. Transportation

Industries

Industries are sub-categories of sectors. Within each sector, there are a number of industries. The Transportation sector, for example, includes Industries such as:

1. Transportation - Rail 2. Transportation - Air 3. Transportation - Truck

TheWizardUniversity

SECTOR SCAN FOR STOCKS

Stocks move together

Sectors and industry groups typically move together. What this means is that stocks in a given sector or industry typically move together. Therefore, by identifying which sectors and industries are strongest and which are the weakest, we can quickly narrow down our universe of over 9,000 stocks to a handful of the best investment candidates. Before we show you how to do this, let's talk about what makes a sector or industry strong or weak.

Strong Industry

An industry composed largely of stocks whose Trend = Buy. The more stocks whose Trend = Buy, the stronger the Industry.

Strong Sector

A sector composed largely of Industries whose Trend = Buy. The more Industries whose Trend = Buy, the stronger the Sector.

Weak Industry

An industry composed largely of stocks whose Trend = Sell. The more stocks whose Trend = Sell, the weaker the Industry.

Weak Sector

A sector composed largely of Industries whose Trend = Sell. The more Industries whose Trend = Sell, the weaker the Sector.

TheWizardUniversity

SECTOR SCAN FOR STOCKS

First. Fastest. Farthest.

When running a Sector Scan, The Wizard looks for stocks which exhibit three qualities: They'll move first The Wizard looks for stocks that are likely to move up or down as soon as possible.

They'll move fastest Once they move, these stocks are likely to do so very quickly.

They'll move farthest These stocks will move up or down the furthest amount, resulting in higher profits.

In short, The Wizard aims to find the stocks that are most likely to offer the most profit potential in the shortest amount of time.

The Wizard looks for the stocks that are likely to move first, fastest and farthest.

TheWizardUniversity

SECTOR SCAN FOR STOCKS

A Top-Down Approach

To do this, The Wizard uses a simple, top-down approach. Below is an overview of how it works. Later, we'll show you the simple process for putting this exact plan into action.

Finding Buy Signals STRONGEST SECTORS

Look for the strongest Sectors

STRONGEST INDUSTRIES

Look for the strongest Industries within those Sectors

STRONGEST STOCKS

Look for the strongest stocks within those Industries.

Finding Sell Signals WEAKEST SECTORS

Look for the weakest Sectors

WEAKEST INDUSTRIES

Look for the weakest Industries within those Sectors

WEAKEST STOCKS

Look for the weakest stocks within those Industries.

TheWizardUniversity

SECTOR SCAN FOR STOCKS

Part 2: The Sector Scan Tour

An overview of the Sector Scan feature, its features and tools

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download