A Top-Down Approach To Find Market-Beating Stocks

Back at it this week on StockCharts TV! I had the pleasure of once again hosting “Your Daily Five” this afternoon and I gotta say – I am a HUGE fan of this format. In just about 10 minutes, we bring you a concise, action-packed daily rundown of the five most important charts that you need to be watching. Weekdays at 1:00pm ET, each day features a new host, which means five top charts and key insights from a different seasoned technician every single day of the week.

First up, I took a multi-timeframe look at the classic Intermarket Analysis chart with stocks (SPY), bonds (TLT), gold (GLD), commodities (DBC), oil (USO) and the US dollar (UUP) all on one chart. I narrow down from the long-term 10-year weekly view to the intermediate-term 2-year daily view, then zoom in all the way to a 3-month daily chart.

With some broad market analysis out of the way, I then walked through my top-down analysis approach using the Sector Summary page on StockCharts. This feature-rich resource is one of my favorite ways to find market-leading stocks, but many users don’t realize the full power of the tool. By drilling down from the 11 sectors to the industry groups and then the individual stocks within, you can quickly pinpoint the strongest stocks in the strongest industry groups in the strongest sectors of the market. That sort of top-down approach yields amazing relative strength, and it’s a great resource not only for your analysis, but also your discovery process.

So, to see the process in action, be sure to watch today’s edition of “Your Daily Five” below:

Money In, Eyes Open.

– Grayson Roze

VP of Operations, StockCharts.com

Author, Trading for Dummies (Wiley, 2017)

Author, Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016)