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By nyua
September 7, 2007

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Hi everyone,

Here are some ideas I have been following based on "Top Stocks within an Industry".

I read (don't remember where) that most of the market gets moved by stocks that are the best performing within their industry group. Whether this is true during bearish times (or do these leaders lead the downturn too), I do not know.

Of course, like most of my ideas, this has not been back-tested but is based on research and makes sense. I played with this a couple of years ago but I think I have found combinations that I can follow for the long haul.. at least to me.

Of course, all of these use my PnF to avoid a stock or sell early. These screens are reviewed weekly but stocks are only added if/when stocks are sold.

Zacks Top Industries

Buy:
1. Stock must be a Zacks #1 stock with a "buy" recommendation
2. Using Zacks rank of industries, buy top 10 Zacks #1 with buy recommendation.
3. Use Price/Sales filter to break ties.

Sell: either condition
1. Below Zacks 2 or "sell" recommendation
2. PnF

YTD from 3/23 through 8/31: +15.47%

DIA during that period +7%
SPY during that period +2.8%
QQQQ during that period +10.8%

Sell: BEN
Buy: EK

Holdings:
EK
BKR
BPO
CBG
CEDC
FDP
FLIR
JLL
XRIT
CMI

WER P/S - Top Industries This was based on an idea presented by Brian in the WER group

Buy:
1. Stock Universe - WER
2. Sort low Price/Sales
3. Buy top 10 using rank in list that are also top industry based on IBD

Sell: either condition
1. Out of top 5 based on IBD's rank within its industry
2. PnF

YTD from 2/5 through 8/31: +18.98%

Sell: TNC
Buy: SBS

Holdings:
AMED
CEDC
CPO
FSRV
FSTR
GME
LKQX
MEAS
SBS
DK

Zacks/Rabbitts Overlap with Price/Sales sort and Top Industry

Buy:
1. Use Zacks/Rabbitts Overlap
2. Price/Sales sort
3. Buy top 5 that are also #1 (top industry) within their industry group

Sell: any of the conditions
1. No longer Rabbitts 90+ and Below Zacks 2. The stock stays if one of those is still true.
2. Out of IBD top 5 for their industry
3. PnF

YTD from 5/25 to 8/31: +21.63%

DIA during that period down 1.1%
SPY during that period down 2.78%
QQQQ during that period +5.2%

No changes.

Holdings:
CEDC
CPO
FOSL
MUR
SYNA

Zacks/Rabbitts Overlap with 26wk RS Sort and IBD Top Industry

Buy:
1. Stock Universe is Zacks/Rabbitts Overlap
2. Sort by RS26wk
3. Stock must have a Zacks buy recommendation
4. Buy top 5 that are also #1 in their Industry Group based on IBD

Sell: any of the conditions
1. No longer Rabbitt 90+ and below Zacks 2. Both must apply.
2. Out of top 5 in their industry
3. PnF

YTD from 6/8 through 8/31: +6.2%

No changes.

DIA during this time period: down 0.5%
SPY during this time period: down 2.4%
QQQQ during this time period: +4.2%

Holdings:
CEDC
CHAP
FOSL
SYNA
TRAK

Overlaps RS sort with IBD top industry As you can tell, I am still trying to find a strategy with these overlaps!

Buy:
1. Stocks with an Overlap Count of 6 or more.
2. Sort by 26wk RS.
3. Buy top 5 that are also #1 in their industry group based on IBD

Sell: any of these condition
1. No longer on the Overlap list. Less than 1.
2. Out of top 5 within its industry group based on IBD.
3. PnF

YTD: from 6/8 through 8/31: +18.58% (thanks to a timely re-buy of BCSI)

DIA during that time period: down 0.5%
SPY during that time period: down 2.4%
QQQQ during that time period: +4.2%

No changes.

Holdings:
BCSI
CEDC
FCN
SMDI
SYNA

Overlaps 6+ with Price/Sales Sort and top in its industry

The same as the above but using Price/Sales sort instead of RS.

YTD: from 6/8 through 8/31: +14.87% (again, thanks BCSI)

No changes.

DIA during that time period: down 0.5%
SPY during that time period: down 2.4%
QQQQ during that time period: +4.2%

No changes.

Holdings:
BCSO
CEDC
FCN
GME
SYNA

New to the top industry screens: Rabbitts Sector

Universe: Rabbitts 90 and above stocks

Buy:
1.Using rank in list... 99 first, look for top in its industry based on Rabbitt
2. Must be an overweight sector...
3. Sort by Industry rank if necessary
4. Buy top 5

Sell:
1. PnF or drops below Rabbitts 90

YTD: 8/17 through 8/31: +11.23%

No changes.

Holdings:
JDAS
PENX
SONE
SYNA
TRA

DIA during this time period: +2.2%
SPY during this time period: +1.9%
QQQQ during this time period: +5.5%

I plan to do a ValueLine sector portfolio if I can get the weekly T1 list with the industry/ranks pages. The ValueLine sector portfolio will be bought/sold on Tuesdays and prices will reflect closing on Mondays. First progress report will be next week.

Marjory