Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

What Stocks Within the Good Sectors Are the Best to Buy?

Now, let’s turn to our recommended list, fundamental selections, and other members of our “hot list.” Do they come from the strongest groups? If not, they may still be good but they will require exceptionally strong technical opinions to make them buck the conditions prevailing in their sectors and industry groups.

Let’s say some of the hot list stocks come from the strongest sectors. We now turn to the charts to find positive trends, positive pattern breakouts, and supporting data such as volume, momentum, and sentiment. Rather than rehash previous examples here, the reader is invited to look back at the sections on these topics for review.