February 19th, 2007

IBD’s Industry Groups: Updates

Creating 197 watchlists to correspond with IBD’s industry groups was the easy part. The hard part is tagging each stock chart in the TC2007 base to one of those watchlists. To do that I needed help. I purchased from IBD for approximately $50 a pdf version of their industry group list and the stocks within each group. After purchasing the PDF edition, you will have 24 hours to access the electronic files. During this time, you’re able to download the files to your computer and save them as a permanent reference copy. Once downloaded, I trimmed excess data from the list and used TC2007’s import feature to upload the lists into TC2007.

I only learned later through experience that the lists need continual updating (more later on how that’s done):

  • Group reassignments by IBD
  • IPO’s (new stock issues)
  • Acquisitions and mergers

Once that’s done it’s amazing to be able to see how similar the chart patterns were for multiple stocks within an industry. When a resistance or support trendline is clearly visible on one stock in an industry, the same, or similar, trendline can be drawn on the charts of other members in that industry group. Just reference some of my previous postings (e.g., Steels, Defense, Telecom-Foreign Service) for examples. It’s uncanny when viewed this way and lends support the notion that an individual stock’s price movement is significantly impacted by the movement of it’s industry (remember, market=50%, industry group= 30%, stock= 20%).

Updating Industry Group Data

Once the watchlists were created, I started monitoring and trying to analyze the industry groups ranking shifts from week to week. Not easy when using the list published daily in the Investors Business Daily print edition. So I next subscribed to IBD’s Industry Group online service through which I got downloadable daily access to:

  • Industry Group Intraday Performance reports including:
  • Industry Snapshot- the Best Performing and the Worst Performing O’Neil Industry Groups™, based on percentage change in the Industry Group’s Index value during the trading day
  • Highest Rankings – the top 10 Industry Groups based on price performance of all stocks in each industry over the latest 6 months
  • Daily Graphs Online Industry Groups
  • Lowest Rankings – the bottom 10 Industry Groups based on price performance of all stocks in each industry over the latest 6 months
    • New Highs – the 10 Industry Groups with the greatest percentage of stocks reaching new 52-week highs during intraday trading
    • New Lows – the 10 Industry Groups with the greatest percentage of stocks reaching new 52-week lows during intraday trading
    • Complete IBD™ Rankings of all 197 Groups
  • Other time-saving features including:
    • Daily Graphs Online®-style charts for all industry groups
    • Lists of component stocks in each industry group
    • Proprietary IBD™ SmartSelect® Ratings and other data for every stock
    • Ticker Symbol/Industry lookup tool

Now, I was in business. I began formulating daily and weekly routines to help narrow my search for investment opportunities.

more to follow ……

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