Leaders and Losers: Industry Trends - 1/11/2024
We put a lot of emphasis on a top-down approach here at Grindstone. Yes, there’s tremendous value to be had in a bottom-up technical approach, too, which is why we sift through thousands of charts of individual stocks each month. When we’re just checking the charts of individual stocks, though, we can miss out on big themes in the market – especially if we aren’t in tune with the fundamental factors that drive each of those individual stocks.
Zooming out helps.
If you’re a regular reader of our work, you’ve probably noticed that our equity research process centers around the 11 GICS sectors. When we take groups of similar companies together, we can better identify the types of companies that are working best, and that can help us identify the most sustainable trends. And once we’re in the right zip-code, then we can spend our time deciding which companies within that zip-code we want to own.
Today, we’re going a step deeper than those sector-level trends and moving to the “Industry” level of the GICS classification system. We’re looking at which groups have performed the best over the last few weeks and months, which ones are showing bullish momentum characteristics, and which ones are setting higher highs. Here’s the rundown:
Let’s take a look at some of the most interesting industry setups.