A big win of more than 75% in a bad sector

A Short-Term Opportunity in a Weak Industry...READ MORE
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A Short-Term Opportunity in a Weak Industry

Traders often focus on either the broad stock or the individual stocks in the market that they believe will be among the biggest gainers. This analysis can be useful but there are other ways to think about finding trades in the stock market.

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For example, a trader could consider industry groups. A group is one of the ways that companies can be grouped together. Under this classification, a sector refers to a large segment of the economy, while the term industry describes a much more specific group of companies or businesses.

We provide information about an industry that has been falling sharply and is down about 40% since its October highs in our recent article and then we identify a specific company that has been in a down trend since last April.

Analysts are also concerned about this company and we look at what an analyst has to say in addition to focusing on the chart of the stock. Then we detail a strategy that limits the risk, just in case the stock moves higher instead of lower as expected.

Using recent market data, this trade offers a potential gain of more than 75% and a holding period of about a month. You can learn more right here.

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