When investing in the stock market it is important to know about which places to look to pick the stocks with momentum. The stock market is divided into sectors which are a qualification method which looks at the type of business and then groups them based on their similar industries. Stocks within a sector tend to move together due to their being affected by similar market and economic conditions.

John Bollinger, the inventor of Bollinger Bands, stated “Stocks like sheep, move in herds. If you want your sheep to move north, you better pick a sheep in a herd moving north.” Of course a sheepherder would have a different opinion but you get the idea. The trick then is to find the sectors which have momentum and then find the stocks within that sector that have the most momentum.

There are several websites that will analyze the different sectors and stocks within the sectors. One really good site is the site at www.msn.com. The investing tools are really developed to complete stock analyzing. Within that site can be found a sector analyzer. The link is found at http://moneycentral.msn.com/investor/market/top10industries.asp Microsoft shows you the best and worst performing industry groups including the percentage change for each group during the past month. The results are updated nightly.

Another place to look is at www.equitytrader.com. In the toolbar at the top is an option to bring up Lists of stocks that are doing well. In the professional section is the option to find the top sectors. It does require a $25.00 monthly charge but they do offer a 30 day trial so you can determine if the information obtained is worth the charge. It may be worth the charge if it helps you to make more than that with your trading system. http://www.grouppower.com/sector/ is a link to go directly to the equitytrader sector analysis.

At www.smartmoney.com you can find investing tools that will help you Near the bottom of the site under a lot of ads, you will find a selection called investing tools. A direct link is found at http://www.smartmoney.com/tools/. This contains different investing tools to help you pick winning stocks. At http://www.smartmoney.com/sectortracker/ you will find sector ratings.

It will take a little time but you can with some research find the companies to buy shares in that have momentum. Then you can do technical analysis and financial analysis on those companies to determine which ones you want to invest in.

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