Stock Picks and Industry Ranking

James Andrews

June 19, 2007

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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

About 90% of an industry’s rank is weighted by the percent increase in its index price over the previous 4 weeks and 10% is weighted by how much the index is oversold based on its 10-period Williams-%R. 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 main reason for using this classification system is the ready availability of industry performance. Each industry’s performance is accessible through online data retrieval software that imports the numbers directly from Yahoo Finance and sorts them in a spreadsheet. These tools are available on the website.

The leading industries for the past month are ranked in Table 1A. The leftmost column is the rank. The second column from the left is the number of positions an industry is above or below its 4-week average rank.. The third column from the left is the relative rank of the industry based its movement above its average rank. 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

June 18, 2007

Rank	Relative To Avg. Position	Rank of Position Change	Leading Industries	Companies	Last Gain	1 wk Ago Gain	1 mo Gain
1	56	36	Synthetics	C's	1.2%	43.4%	41.4%
2	129	5	Home Furnishing Stores	C's	-0.5%	39.7%	31.2%
3	63	31	Home Health Care	C's	0.2%	15.4%	17.7%
4	81	16	Sporting Goods	C's	-0.3%	15.0%	18.9%
5	76	19	Medical Laboratories & Research	C's	0.0%	7.7%	10.4%
6	52	38	Agricultural Chemicals	C's	1.2%	6.4%	6.2%
7	23	68	Copper	C's	-0.2%	5.7%	13.8%
8	-1	99	Personal Computers	C's	2.4%	4.8%	13.0%
9	22	69	Processing Systems & Products	C's	-0.4%	2.1%	10.4%
10	119	7	Diagnostic Substances	C's	-0.1%	3.4%	3.6%
11	51	40	REIT - Residential	C's	-1.2%	-0.6%	4.3%
12	64	29	Semiconductor - Broad Line	C's	0.3%	4.9%	2.3%
13	96	13	Hospitals	C's	-0.3%	4.6%	7.0%
14	77	18	Discount, Variety Stores	C's	-0.3%	-0.6%	4.3%
15	48	45	Electronic Equipment	C's	-0.5%	4.7%	4.1%
16	70	22	Industrial Metals & Minerals	C's	0.2%	4.0%	10.8%
17	110	10	Semiconductor - Specialized	C's	-0.2%	10.9%	10.7%
18	88	15	Regional - Pacific Banks	C's	0.1%	6.4%	6.8%
19	68	25	Resorts & Casinos	C's	0.0%	0.9%	8.5%
20	-9	108	Heavy Construction	C's	0.5%	5.9%	11.1%
21	131	3	REIT - Hotel/Motel	C's	-1.2%	-1.6%	0.2%
22	21	72	Building Materials Wholesale	C's	-0.1%	2.7%	8.5%
23	118	8	Drug Manufacturers - Other	C's	-0.5%	7.3%	6.7%
24	21	73	Textile Industrial	C's	0.7%	-4.4%	-0.1%
25	56	35	Long-Term Care Facilities	C's	-0.9%	0.5%	1.5%
26	136	2	REIT - Diversified	C's	-1.7%	-1.0%	0.3%
27	31	64	Gaming Activities	C's	-0.3%	3.2%	7.7%
28	49	43	General Entertainment	C's	-0.4%	0.2%	0.3%
29	112	9	Technical & System Software	C's	-0.6%	6.8%	7.1%
30	47	47	Farm & Construction Machinery	C's	0.2%	3.8%	8.1%
31	-11	113	Independent Oil & Gas	C's	0.5%	4.8%	8.1%
32	-20	128	Technical Services	C's	0.2%	3.1%	5.3%
33	142	1	REIT - Office	C's	-1.2%	-0.7%	-0.7%
34	48	44	Publishing - Newspapers	C's	-0.7%	-1.2%	-1.6%
35	41	50	Information & Delivery Services	C's	-0.3%	-2.3%	-0.9%
36	93	14	Medical Equipment Wholesale	C's	-0.2%	0.7%	2.5%
37	13	84	Oil & Gas Drilling & Exploration	C's	0.5%	5.8%	7.9%
38	41	51	Lodging	C's	-1.0%	1.0%	1.6%
39	-20	132	Drug Delivery	C's	0.1%	1.5%	6.0%
40	54	37	Credit Services	C's	-0.6%