How to Find Bullish Sector Stocks in a Bear Market
- 1). Go to the public library or nearest bookstore and grab a copy of the Investor's Business Daily edition. Go to the market section and begin looking up the "Strongest Industries" section in the paper. Mark down the strongest industry in the stock market along with Relative Strength rating or RS. The RS rating is a comparative indicator that scores segments of the market between the weakest performing and the strongest performing.
- 2). Look at the "Strongest Sectors" section and then write down the strongest performing sector along with its RS score. Make sure that the strongest performing sector is a component in the strongest performing industry.
- 3). Go to Yahoo! Finance and look up all the stocks that make up that sector and begin writing them down. Begin going through Investor's Business Daily and looking up each stock symbol while marking down the RS value of each stock within that stock sector.
- 4). Pick the highest RS valued stocks and then create a stock watch list. Pick the top three RS rates stocks as potential investments when the market turns bullish. These stocks will have proven themselves to be the most resilient at resisting the downward bias of the bear market and are set to lead the next bull run in tomorrow's stock market.