After I pointed out on Sunday that the stocks still trading above the 50-Day Moving Average were not the same list as the stocks I had been watching, it occurred to me that there was a good chance that I was going to end up watching the wrong stocks. In an effort to avoid that, I decided this morning to change my watchlist to IBD’s list of “Sector Leaders” at the bottom of page B1. I’m not sure that I will stick to this permanently, but I think it will be beneficial during the correction. I am also interested to see how frequently these Leaders change and this will give me the ability to follow more closely.
One thing that I’ve noticed while reading the Research Table Review column, usually found on page B6, is that it seems that there have been some big gains and some big losses among the sector leaders all week. I am wondering if this is the market’s way of separating out the new leaders for its next uptrend.
I had a revelation this week with regards to networking. I realized yesterday that I was not friends with Michael Covel on facebook. As I was sending him the friend request, I recalled an interview he did a few weeks ago where the person he interviewed discussed how he met Michael and a few other traders through Facebook. Why haven’t I thought to do that? So this morning I looked up every trader that Covel has interviewed on his podcast and so far, a bunch of them have accepted. I feel like this could be opening a doorway to a wealth of knowledge and an avenue to ask questions directly to some of the most respected traders I know.