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Industry Group Analysis
This Week: Big Chart Update for the Week of October 22 1. Introduction 2. Groups That Are Heating Up 3. Groups That Are Cooling Off 4. On The Radar Screen This Week 5. Disclaimer ***********************Our Sponsor************************* Are you making money shorting stocks? You should be. Learn how to profit in a recession. Hot Stix shows you all the ropes of shorting, stop loss orders, limit orders. Profit while you can. Subscribe Now. http://clyde.investools.com/T/A28.146.746.1.113719 ********************************************************** 1. Introduction Earnings have been the primary driver behind the changes in industry group rank on the Big Chart. Groups that have been showing upward earnings momentum, such as automotive retailers, or are perceived as getting a boost from recent events, like generic drug makers, are being rewarded with higher rankings. Conversely, those groups with murky earnings outlooks have seen their rankings fall, as is happening among copper stocks. Industry Group Analysis is just another of the many great reasons to be a subscriber to the WallStreetCity website. Besides great industry group analysis and incredible stock analysis, you also get access to the world's most powerful stock screening tool on the planet, ProSearch, all in one subcription package. However, we give you a 30-day FREE trial to this service to make sure it suits you, so give us a try. Click below to take a 30-day FREE trial. http://subs.wallstreetcity.com/c/go/XPRO/WSCE-bc102201?s=S601&D=XWSC ____________________________________________________________ 2. Groups That Are Heating Up Drugs/Generic and OTC {.DRU} continued to rise on the Big Chart, with its ranking improving for eight out of the last nine weeks. Fears over the spreading anthrax outbreak have caused discussions about allowing companies other than patent-holder Bayer AG {BAYZY} to produce antibiotic Cipro and, as a result, shares of generic drug manufacturers have risen. Among the chief beneficiaries of this sentiment has been Pharmaceutical Resources {PRX}, which already has approval to begin producing Cipro when Bayer's patent expires in 2003. Earnings growth and a renewed interest in equities has also helped the group with shares of Mylan Laboratories {MYL} rebounding and First Horizon Pharmaceutical {FHRX} rising last week. Despite the economic deceleration that occurred during the third quarter, automobile dealers and parts stores have been the primary drivers behind Retail/Stores/Specialty's {.RSP} resurgence. The group rose back into green territory this week, with an 89th percentile ranking, for the first time since September 4 as auto stocks are trading at six-week or 52-week highs. Propelling the auto dealers are Sonic Automotive {SAH}, which raised 2002 earnings guidance last week after acquiring four dealerships, and Group 1 Automotive {GPI}, which reiterated its Q3 guidance on as used car and parts and service revenues remain strong. Similarly, automotive parts retailers Pep Boys {PBY} and Autozone {AZO} have been trending higher on earnings expectations - the Q3 consensus estimate for AZO was raised last month. Other groups with rising rankings include Broadcasting {.BRO}, Electronics {.ELE}, Leisure/Casinos-Gaming {.LCG}, Retail/Merchandising {.RME}, Retail/Stores/Furniture {.RFU}, and Retail/Stores/Warehouse Clubs {.RWC}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 3. Groups That Are Cooling Off The ranking for Basic/Mining/Copper {.MCP} fell to the bottom three percentile this week as copper prices continued to plunge. The weak economic conditions in the United States and Europe have hurt demand for the metal, sending copper supplies to their highest levels in 18 months. As a result, copper prices are trading at 15-year lows as traders speculate that a recovery will not occur over the short-term - evidence of how negative this sentiment was witnessed last Tuesday when short-selling reached its highest level since 1986. Companies impacted by the collapse in prices include Phelps Dodge {PD}, Southern Peru Copper {PCU}, and Freeport McMoran {FCX}. Other groups with declining rankings include Beverages {.BEV}, Beverages/Distillers {.BDI}, Broadcasting/Television {.BTV}, Homes/Hotels-Motels-Inns {.HOT}, and Telecommunications {.TEL}. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ____________________________________________________________ 4. On The Radar Screen This Week For the second week in a row, Electronics/Semiconductors {.ESE} is being placed into the spotlight as a group to keep an eye on. Technical strength among chip stocks is a necessity for the Nasdaq {NASD} to break above its 50-day moving average line and continue its recent rebound. Whether chip stocks continue to improve, however, will be dependent on perception as how quickly an economic recovery occurs. One proxy will be the holiday shopping season, which will start in a few weeks. To view the Big Chart click the link below. http://www.wallstreetcity.com/commentary/commentary_group_rotation.asp ***********************Our Sponsor************************* Visionary George Gilder ID's the Greatest Opportunity Yet! George Gilder knows how real money is made: invest early in companies with ascending technologies. He ID'd Qualcomm when it sold for $4.75 (it grew to $200), Broadcom at $6.00 (to $253) and many more. But today's trillion-dollar opportunity can dwarf them all. Click here now for your FREE report: http://sub.digitalpowerreport.com/c/go/XDPR/WSCE-xdprTA4?s=S930&D=XGLD ********************************************************** 5. Disclaimer WallStreetCity's Industry Group Analysis is published solely for informational purposes and is not a solicitation or an offer to buy or sell any stock, mutual fund or other security. The information obtained from internal and external sources is considered reliable, but has not been independently verified for accuracy and completeness. WallStreetCity, its employees, and/or officers and directors, may from time to time have a position in the securities mentioned and may sell or buy such securities. Trading involves risk, including possible loss of principle and other losses. Trading results may vary. No representations are being made that these techniques will result in or guarantee profits in trading. Past performance is no indication of future results. 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