Many Stocks Have Already Bottomed

This week I'm sticking with a similar message from last week. It's a market of stocks and despite the weakness in the major indices, along with growth and big tech, many stocks bottomed months ago.

Here's what I'm talking about.

The amount of stocks making new lows has been on the decline since June...

The S&P 500, NASDAQ, and Russell 2000 continue to trade well below the 200 day moving average. But what about individual stocks?

The number of stocks trading above the 200 day moving average is beginning to trend higher...

And what about specific industries? As the saying goes there's always a bull market somewhere.

Here are the top performing industries year to date...

So, are we seeing a comeback when it comes to stock picking?

Indexing has been difficult to beat over the last decade because of the stellar performance of the mega-cap tech names that are heavily weighted in most index funds. 

However, with the recent weakness in big tech and strength in other segments of the market, we could be entering a period of time where stock selection will be very important.

This is what we do in PFT Premium. We filter out the noise and focus on trends. We don't get stuck in a rut trying to invest in what has worked. We look at what is working and what we think will continue to work in the future.

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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.