WiserTrader Monthly

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August 2007                          Prescott, Arizona                     Contact Editor

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Contents

1.0 Leading Industries

Stocks in Leading Industries

2.0 Industries Rising in Rank

3.0 Industries Falling in Rank

4.0 Lagging Industries

Published the 3^rd Tuesday of the month

Industry Ranking for August

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Top down stock picking based on the leading stocks in leading industries should be supplemented with additional fundamental and chart analysis.

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1.0 Leading Industries

     Industry rank is weighted by the percent increase in its index price over the previous 4 weeks.  Industry rank ranges from a high of 1 to a low of 215 based on a list of 215 industries in the Yahoo Finance industry classification system. 

     The leading industries for the past month are ranked in Table 1A.  The leftmost column is the rank based on the previous 4-week percentage change.  The second column from the left is ranked by the number of positions an industry is above or below its 4-week average rank.  The third column from the left is the average of the first two columns.  Clicking on the industry name takes you to an industry summary page.  The “C’s” will display the companies in the industry.  The last three columns on the right are the percentage gains for the previous trading day, the previous week and the previous four weeks. 

 Table 1A

Leading Industries

August 21, 2007

R = Rank	C = Rank of Change	(R+C)/2	Industries	Companies	Last Gain	1 wk Ago Gain	1 mo Gain
1	97	49	Diagnostic Substances	C's	-0.7%	1.0%	8.0%
2	2	2	Recreational Goods, Other	C's	0.7%	7.7%	5.6%
3	77	40	Water Utilities	C's	1.5%	2.3%	3.8%
4	14	9	Regional - Southwest Banks	C's	1.6%	8.6%	3.8%
5	60	33	Medical Equipment Wholesale	C's	1.8%	2.2%	3.1%
6	30	18	Sporting Goods Stores	C's	4.2%	8.0%	2.8%
7	63	35	Confectioners	C's	0.9%	2.8%	2.4%
8	68	38	Resorts & Casinos	C's	2.6%	2.6%	1.2%
9	91	50	Catalog & Mail Order Houses	C's	2.4%	0.8%	1.1%
10	11	11	Regional - Pacific Banks	C's	1.6%	7.0%	1.1%
11	12	12	REIT - Retail	C's	0.6%	6.4%	0.9%
12	26	19	Food Wholesale	C's	0.2%	3.6%	0.5%
13	17	15	REIT - Industrial	C's	1.7%	10.3%	0.3%
14	76	45	Drug Stores	C's	0.5%	0.3%	-0.4%
15	70	43	Research Services	C's	-0.1%	1.2%	-0.4%
16	10	13	Regional - Mid-Atlantic Banks	C's	1.0%	7.6%	-0.6%
17	59	38	Specialized Health Services	C's	-0.2%	1.4%	-0.8%
18	48	33	Medical Laboratories & Research	C's	-0.3%	0.8%	-0.8%
19	114	67	Personal Products	C's	-0.6%	0.9%	-0.9%
20	4	12	REIT - Healthcare Facilities	C's	0.6%	5.8%	-1.0%
21	3	12	Savings & Loans	C's	2.0%	10.8%	-1.3%
22	85	54	Auto Parts Wholesale	C's	-0.7%	2.7%	-1.4%
23	52	38	Healthcare Information Services	C's	0.2%	2.1%	-1.4%
24	19	22	Money Center Banks	C's	0.1%	6.7%	-1.5%
25	35	30	Internet Service Providers	C's	2.2%	4.5%	-1.7%
26	1	14	Music & Video Stores	C's	-0.1%	1.4%	-1.9%
27	32	30	Sporting Goods	C's	0.0%	1.5%	-2.2%
28	22	25	Property & Casualty Insurance	C's	-0.1%	4.8%	-2.2%
29	6	18	Regional - Midwest Banks	C's	0.6%	7.4%	-2.2%
30	149	90	Networking & Communication Devices	C's	1.2%	-0.3%	-2.5%
31	5	18	REIT - Residential	C's	1.6%	9.0%	-2.7%
32	9	21	Regional - Southeast Banks	C's	0.8%	7.9%	-2.7%
33	128	81	Scientific & Technical Instruments	C's	0.9%	0.2%	-2.7%
34	148	91	Specialty Eateries	C's	1.2%	0.5%	-2.8%
35	47	41	Drugs Wholesale	C's	0.5%	2.0%	-3.0%
36	65	51	Accident & Health Insurance	C's	-0.6%	1.2%	-3.1%
37	124	81	Multimedia & Graphics Software	C's	0.2%	-0.3%	-3.1%
38	8	23	REIT - Office	C's	0.7%	6.9%	-3.2%
39	118	79	Beverages - Soft Drinks	C's	-0.8%	-0.7%	-3.2%
40	21	31	Internet Information Providers	C's	1.2%	-0.8%	-3.3%

     The top 20 leading industries are plotted in Figure 1.

FIGURE 1

1.1 Stocks in Leading Industries

     The two leading industries for the past four weeks were Diagnostic Substances and Recreational Goods.  Stocks from these are listed by price in Tables 1B and 1C.  Leaders for the past week and month have the lowest numbered rankings.  Stocks were omitted because of performance, the exchange traded or data was difficult to obtain.

Table 1B – Diagnostic Substances as of 8/21/07

Symbol	Exchange	Avg. Vol.	Volume	Price	Last % Chg	1wk %Chg	1mo %Chg	1 wk Rank	1 mo Rank
DADE	NasdaqNM	1,310,380	1,561,424	$74.67	0.19%	-0.4%	33.6%	7	1
AMAG	NGM	618,141	159,425	$53.65	-1.40%	0.4%	-6.9%	6	8
SRDX	NasdaqNM	227,955	102,301	$50.09	-1.63%	2.3%	4.0%	5	6
MYGN	NasdaqNM	549,377	870,728	$42.03	-2.53%	2.5%	8.4%	4	3
VIVO	NasdaqNM	283,658	302,487	$24.58	-1.68%	-2.0%	7.9%	8	4
ABAX	NasdaqNM	287,917	92,218	$20.79	1.02%	4.4%	10.2%	2	2
QDEL	NGM	469,927	272,543	$16.12	-0.92%	10.0%	1.1%	1	7
AKRX	NGM	428,258	99,565	$7.52	-1.05%	3.7%	7.3%	3	5
SNUS	NGM	202,719	340,710	$4.08	5.70%	-2.9%	-18.1%	9	10
EPIX	NGM	183,412	65,707	$4.07	-3.78%	-4.2%	-16.9%	10	9

Table 1C – Recreational Goods, Other  as of 8/21/07

Symbol	Exchange	Avg. Vol.	Volume	Price	Last % Chg	1wk %Chg	1mo %Chg	1 wk Rank	1 mo Rank
FOSL	NasdaqNM	530,227	569,049	$33.15	1.13%	12.5%	20.2%	1	1
JADE	NGM	694,870	176,409	$6.38	1.43%	-2.6%	-15.3%	4	7
PGIC	NGM	499,895	85,699	$5.01	0.60%	-5.8%	-6.2%	6	4
LVB	NYSE	71,242	175,000	$30.42	-2.78%	0.6%	-9.8%	3	5
MOV	NYSE	186,677	130,900	$29.13	0.52%	5.5%	-5.9%	2	3
ORNG	NGM	5,975	495	$5.71	7.53%	-3.9%	-12.0%	5	6
SMD	AMEX	34,454	86,700	$0.55	-3.49%	-14.1%	-5.2%	7	2

     Symbols that are highlighted in blue are optionable.  Normally, the Options Advisory limits itself to stocks priced above $30 because the higher a stock’s price, a smaller percentage change is needed to produce a desired change in the value of an options contract.

     Before trading any of these stocks, some due diligence is needed to look at their charts and the fundamentals that you typically use.  These tables were obtained with tools available on the website, as well.  The tools can be used to produce similar tables for any or all of the 215 industries.

2.0 Industries Rising in Rank

     Table 2A contains the industries that are moving up in position the fastest.  The 20 fastest rising in rank are plotted in Figure 2.

 Table 2A

Industries Advancing in Rank the Fastest

August 21, 2007

R = Rank	C = Rank of Change	(R+C)/2	Industries	Companies	Last Gain	1 wk Ago Gain	1 mo Gain
26	1	14	Music & Video Stores	C's	-0.1%	1.4%	-1.9%
2	2	2	Recreational Goods, Other	C's	0.7%	7.7%	5.6%
21	3	12	Savings & Loans	C's	2.0%	10.8%	-1.3%
20	4	12	REIT - Healthcare Facilities	C's	0.6%	5.8%	-1.0%
31	5	18	REIT - Residential	C's	1.6%	9.0%	-2.7%
29	6	18	Regional - Midwest Banks	C's	0.6%	7.4%	-2.2%
52	7	30	REIT - Diversified	C's	1.5%	8.6%	-4.7%
38	8	23	REIT - Office	C's	0.7%	6.9%	-3.2%
32	9	21	Regional - Southeast Banks	C's	0.8%	7.9%	-2.7%
16	10	13	Regional - Mid-Atlantic Banks	C's	1.0%	7.6%	-0.6%
10	11	11	Regional - Pacific Banks	C's	1.6%	7.0%	1.1%
11	12	12	REIT - Retail	C's	0.6%	6.4%	0.9%
67	13	40	REIT - Hotel/Motel	C's	1.5%	5.0%	-6.4%
4	14	9	Regional - Southwest Banks	C's	1.6%	8.6%	3.8%
45	15	30	Recreational Vehicles	C's	2.3%	3.9%	-4.0%
61	16	39	Trucking	C's	-1.2%	2.7%	-5.5%
13	17	15	REIT - Industrial	C's	1.7%	10.3%	0.3%
94	18	56	Property Management	C's	1.6%	2.5%	-8.3%
24	19	22	Money Center Banks	C's	0.1%	6.7%	-1.5%
54	20	37	Electronics Stores	C's	1.3%	3.1%	-4.7%
40	21	31	Internet Information Providers	C's	1.2%	-0.8%	-3.3%
28	22	25	Property & Casualty Insurance	C's	-0.1%	4.8%	-2.2%
81	23	52	Auto Dealerships	C's	0.0%	2.9%	-7.2%
69	24	47	Grocery Stores	C's	4.3%	5.8%	-6.4%
60	25	43	Insurance Brokers	C's	0.6%	2.3%	-5.5%
12	26	19	Food Wholesale	C's	0.2%	3.6%	0.5%
128	27	78	Mortgage Investment	C's	2.6%	7.4%	-10.5%
142	28	85	Investment Brokerage - National	C's	1.2%	6.4%	-10.9%
116	29	73	Toys & Games	C's	-0.9%	-0.2%	-9.8%
6	30	18	Sporting Goods Stores	C's	4.2%	8.0%	2.8%
135	31	83	Long Distance Carriers	C's	-0.5%	-2.1%	-10.7%
27	32	30	Sporting Goods	C's	0.0%	1.5%	-2.2%
51	33	42	Closed-End Fund - Debt	C's	1.1%	2.5%	-4.6%
70	34	52	Publishing - Newspapers	C's	0.3%	0.8%	-6.4%
25	35	30	Internet Service Providers	C's	2.2%	4.5%	-1.7%
84	36	60	Office Supplies	C's	-1.5%	2.0%	-7.5%
100	37	69	Electronics Wholesale	C's	1.1%	1.2%	-8.8%
127	38	83	Rental & Leasing Services	C's	0.8%	0.4%	-10.5%
108	40	74	Closed-End Fund - Equity	C's	1.1%	2.7%	-9.4%
73	39	56	General Entertainment	C's	0.1%	0.4%	-6.7%

FIGURE 2

3.0 Industries Falling in Rank

     A list of the industries declining in rank the fastest is given in Table 3A.  The 20 fastest declining in rank are plotted in Figure 3.

 Table 3A

Industries Declining in Rank the Fastest

August 21, 2007

R = Rank	C = Rank of Change	(R+C)/2	Industries	Companies	Last Gain	1 wk Ago Gain	1 mo Gain
161	176	169	Independent Oil & Gas	C's	-0.7%	-2.3%	-12.0%
83	177	130	Aerospace/Defense Products & Services	C's	-0.6%	-0.5%	-7.2%
86	178	132	Conglomerates	C's	0.3%	1.3%	-7.6%
180	179	180	Information Technology Services	C's	-0.2%	-2.5%	-13.6%
59	180	120	Diversified Computer Systems	C's	-0.6%	-2.4%	-5.1%
185	181	183	Air Services, Other	C's	0.7%	-4.2%	-14.3%
112	182	147	Technical Services	C's	2.4%	0.2%	-9.7%
147	183	165	Industrial Equipment & Components	C's	-0.8%	-1.7%	-11.0%
98	184	141	Pollution & Treatment Controls	C's	-1.8%	-0.3%	-8.7%
169	185	177	Major Airlines	C's	5.3%	-1.3%	-12.6%
167	186	177	Industrial Electrical Equipment	C's	0.1%	0.3%	-12.5%
131	187	159	Chemicals - Major Diversified	C's	-0.1%	1.2%	-10.5%
208	188	198	Industrial Metals & Minerals	C's	1.6%	-0.5%	-19.6%
143	189	166	Small Tools & Accessories	C's	0.5%	-1.8%	-10.9%
154	190	172	Specialty Chemicals	C's	0.0%	0.1%	-11.6%
194	191	193	CATV Systems	C's	-0.2%	-3.2%	-16.3%
181	192	187	Major Integrated Oil & Gas	C's	-1.1%	-0.7%	-13.7%
175	193	184	Beverages - Brewers	C's	0.0%	-1.9%	-13.1%
172	194	183	Aluminum	C's	1.0%	0.3%	-12.9%
120	195	158	Semiconductor Equipment & Materials	C's	-0.4%	-0.2%	-10.0%
211	196	204	Steel & Iron	C's	0.7%	-2.5%	-21.5%
191	197	194	Heavy Construction	C's	2.1%	-2.5%	-15.6%
121	198	160	Personal Computers	C's	2.3%	1.5%	-10.1%
190	199	195	Foreign Money Center Banks	C's	0.2%	-1.3%	-15.3%
174	200	187	Oil & Gas Pipelines	C's	-0.4%	-2.2%	-13.0%
126	201	164	Basic Materials Wholesale	C's	0.0%	-2.3%	-10.4%
119	202	161	Application Software	C's	-0.2%	-0.5%	-9.9%
87	203	145	Semiconductor- Memory Chips	C's	0.6%	-4.6%	-7.7%
129	204	167	Oil & Gas Equipment & Services	C's	-1.1%	-1.1%	-10.5%
140	205	173	Tobacco Products, Other	C's	-2.7%	-0.9%	-10.9%
171	206	189	Closed-End Fund - Foreign	C's	0.1%	-1.6%	-12.7%
195	207	201	Foreign Regional Banks	C's	-0.6%	-2.5%	-16.4%
200	208	204	Regional Airlines	C's	2.0%	-11.7%	-17.5%
183	209	196	Shipping	C's	0.3%	-1.7%	-13.9%
188	210	199	Railroads	C's	-1.0%	-1.4%	-14.5%
213	211	212	Silver	C's	-1.1%	-11.9%	-24.5%
210	212	211	Copper	C's	2.0%	-2.2%	-20.8%
163	213	188	Manufactured Housing	C's	-0.1%	1.0%	-12.1%
197	214	206	Gold	C's	0.0%	-4.2%	-16.7%
215	215	215	Diversified Communication Services	C's	-34.9%	-27.9%	-36.9%

FIGURE 3

4.0 Lagging Industries

     Lagging industries for the past month are listed in Table 4A.  A chart showing the rank performance of the 20 worst ranked is shown in Figure 4.

 Table 4A

Lagging Industries

August 21, 2007

R = Rank	C = Rank of Change	(R+C)/2	Industries	Companies	Last Gain	1 wk Ago Gain	1 mo Gain
176	101	139	Housewares & Accessories	C's	0.3%	-1.9%	-13.3%
177	126	152	Computers Wholesale	C's	-0.5%	-0.2%	-13.4%
178	159	169	Computer Peripherals	C's	-1.6%	-1.6%	-13.6%
179	175	177	Electronic Equipment	C's	-0.3%	-2.1%	-13.6%
180	179	180	Information Technology Services	C's	-0.2%	-2.5%	-13.6%
181	192	187	Major Integrated Oil & Gas	C's	-1.1%	-0.7%	-13.7%
182	144	163	Marketing Services	C's	0.3%	-0.2%	-13.8%
183	209	196	Shipping	C's	0.3%	-1.7%	-13.9%
184	121	153	Building Materials Wholesale	C's	-1.2%	1.0%	-14.1%
185	181	183	Air Services, Other	C's	0.7%	-4.2%	-14.3%
186	158	172	Business Equipment	C's	0.6%	0.1%	-14.5%
187	120	154	General Building Materials	C's	0.4%	-1.0%	-14.5%
188	210	199	Railroads	C's	-1.0%	-1.4%	-14.5%
189	147	168	Jewelry Stores	C's	0.6%	0.6%	-15.1%
190	199	195	Foreign Money Center Banks	C's	0.2%	-1.3%	-15.3%
191	197	194	Heavy Construction	C's	2.1%	-2.5%	-15.6%
192	125	159	Gaming Activities	C's	1.2%	1.7%	-15.9%
193	94	144	Residential Construction	C's	-0.5%	-2.5%	-16.1%
194	191	193	CATV Systems	C's	-0.2%	-3.2%	-16.3%
195	207	201	Foreign Regional Banks	C's	-0.6%	-2.5%	-16.4%
196	104	150	Cement	C's	-0.3%	-4.6%	-16.6%
197	214	206	Gold	C's	0.0%	-4.2%	-16.7%
198	131	165	Oil & Gas Drilling & Exploration	C's	-2.1%	-3.1%	-17.0%
199	115	157	Paper & Paper Products	C's	0.5%	-0.2%	-17.5%
200	208	204	Regional Airlines	C's	2.0%	-11.7%	-17.5%
201	78	140	Surety & Title Insurance	C's	-0.5%	6.8%	-17.7%
202	99	151	Real Estate Development	C's	0.7%	-1.2%	-17.8%
203	92	148	General Contractors	C's	-1.1%	-0.7%	-17.9%
204	162	183	Medical Practitioners	C's	1.8%	3.9%	-18.1%
205	170	188	Oil & Gas Refining & Marketing	C's	-0.4%	-2.5%	-18.2%
206	108	157	Hospitals	C's	-0.1%	-3.1%	-18.7%
207	143	175	Publishing - Books	C's	0.6%	-5.0%	-19.3%
208	188	198	Industrial Metals & Minerals	C's	1.6%	-0.5%	-19.6%
209	129	169	Consumer Services	C's	-0.2%	-1.2%	-20.5%
210	212	211	Copper	C's	2.0%	-2.2%	-20.8%
211	196	204	Steel & Iron	C's	0.7%	-2.5%	-21.5%
212	157	185	Trucks & Other Vehicles	C's	-0.5%	-6.3%	-23.2%
213	211	212	Silver	C's	-1.1%	-11.9%	-24.5%
214	135	175	Toy & Hobby Stores	C's	0.6%	0.8%	-30.4%
215	215	215	Diversified Communication Services	C's	-34.9%	-27.9%	-36.9%

FIGURE 4

     It is important to remember that the usefulness of industry ranking depends on how each industry is actually performing.  When the market performs poorly, the leading industry could very well be the one that declines the least.  An industry could be doing nothing price wise but could end up near the top or bottom of the ranking list because other industries might be doing extremely poorly or well.  There is not enough information in an industry’s ranking list alone to infer how the industry index has actually changed over time.  There is no substitute for looking at the actual percentage change of an index for the industry of interest. 

     Industries ranked according to how much their rank positions have changed from their average is a strong indicator of future industry leadership.  This indicator also confirms how well a leading industry is maintaining its position. 

    The spreadsheet from which the charts and tables were obtained is available as a free download.  It is named the “industries” spreadsheet and is obtained by clicking on the Excel Files link.  The industries spreadsheet gives you performance values for all 215 industries on a single page.  The “companies” spreadsheet, used to view performance of all the companies in an industry, is downloaded from the same web page.  XLQPlus is required. 

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