In this video I give a general market overview and highlight new leadership sectors in the stock market as we start 2022. I also take a deeper dive into the auto and EV sector as potential a major new leading sector in the market. A couple of major points in the video:
- Take a look at the Stage 2 breakout in Ford (F) and compare it to the attributes of a high quality Stage 2 breakout. You’ll find that it is meeting all the criteria Stan Weinstein lays out in the book.
- Big sector moves in the market are usually led by leaders in the sector first, followed by more speculative stocks that breakout later. In this case currently with the EV stocks you have the larger cap leaders (F, TM, TSLA) breaking out first, but there are a number of more speculative stocks that are waiting in the wings that I highlighted towards the end of the video that might setup breakouts later. So making a sector watchlist and following the action is a good way to trade setups in future breakouts that might happen in these stocks due to the strength in the overall sector.
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