Three Top Stocks in the Industrial Sector
While I’ve been very focused recently on the dominance of large cap growth stocks in 2023, including some key warning signs that bullish trend may be over, I’ve also been scanning for stocks making new three-month highs.
The reason why I focus on this three-month time frame is that it allows me to find names that have been struggling and are just starting to turn higher. To put it another way, I’m interested in finding stocks in long-term uptrends, but I’m also very interested in identifying opportunities that are a little earlier on in their bullish phase.
Today we’re profiling three large cap stocks in the industrial sector that score quite well using the proprietary StockCharts SCTR rankings. Now all three of these stocks have had a strong 2023 thus far. In fact, if you cover up the tickers, you may guess that they are in a different sector such as Technology or Consumer Discretionary!
In this video, we’ll break down the chart of the XLI including a strong rotation higher in June, show why these three stocks- BLDR, GE, and CPRT- deserve a top ranking using technical analysis and show how to set price alerts to manage downside risk.
- * What would it take for Industrials to break out of the established basing pattern, and what would that mean for cyclical leadership in the second half of 2023?
- * What makes these three stocks so attractive based long-term, medium-term, and short-term trend analysis?
- * How can we manage downside risk in stocks that have already produced strong gains in 2023?
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David Keller, CMT is Chief Market Strategist at StockCharts.com, where he helps investors minimize behavioral biases through technical analysis. He is also President and Chief Strategist at Sierra Alpha Research LLC, a boutique investment research firm focused on managing risk through market awareness. He is a Past President of the Chartered Market Technician (CMT) Association and currently serves on the CMT Curriculum and Test Committee. David was formerly a Managing Director of Research at Fidelity Investments in Boston as well as a technical analysis specialist for Bloomberg in New York. You can follow his thinking at MarketMisbehavior.com, where he explores the relationship between behavioral psychology and the financial markets.
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.