This Market Keeps Getting Stronger: 10 Stocks in 10 Different Industry Groups

The market continues to give us more reasons to be bullish.

The major indexes are holding above their key moving averages, net 52-week highs remain positive, and breadth has expanded significantly. Roughly 74% of the total market is above the 10-day and 20-day moving averages, while NASDAQ breadth has also pushed well above 50%.

But I don’t want to look at price alone.

I’m also watching what is happening underneath the surface.

The number of stocks making 4% upside moves continues to outpace those falling 4%. Up/down volume is running nearly 2-to-1 on the day, 1.7 over the week, and 1.3 over the month. The advance-decline ratio is also above 1, something we haven’t consistently seen during much of the past several months.

In other words, participation is improving.

And growth is back near the front of the pack.

Since the July 29 low, the NASDAQ 100, Russell 1000 Growth, NASDAQ Composite, and Russell 2000 Growth have been among the strongest indexes I track. Technology has moved back into the No. 1 spot among sectors, with strength showing up in computer hardware, semiconductors, software, cybersecurity, metals and mining, oil and gas, aerospace and defense, and other areas.

That’s what makes this market especially interesting right now.

Earlier this year, there were periods when you could almost ignore everything outside a few dominant growth groups. Now we’re seeing strong stocks emerge from a much wider range of industries.

That doesn’t mean I suddenly want to diversify just for the sake of diversification. I still want to concentrate capital in the strongest stocks inside the strongest groups.

But I want to know where the strength is developing.

So for this video, I decided to do something a little different.

Instead of going through another list filled with the same growth stocks everyone is already watching, I pulled 10 stocks from 10 different industry groups that currently have my attention.

They are:

STX — Computer Hardware
ATRO — Aerospace & Defense
PBF — Oil & Gas
FROG — Software
MTRN — Industrials
AUGO — Metals & Mining
FORM — Semiconductors
NVT — Electrical Equipment & Parts
COHR — Hardware Equipment & Parts
NESR — Oil & Gas Services

And throughout the video, I also touch on several additional names including AXTI, APH, NBIS, and SHOP.

I’m not simply looking for stocks that have gone up.

I’m looking for the combination I come back to again and again:

Big earnings. Big sales. High relative strength. Increasing institutional ownership. Strong industry groups and, most importantly, price and volume action that gives me a logical place to enter and a logical place to admit I’m wrong.

Some of these stocks are already pushing toward new highs.

Others are tightening up and could be developing potential entry points.

And some aren’t ready but can be added to the watchlist.

I would much rather identify the stock early, put it on my watchlist, and wait for price to give me the setup than force an entry simply because the fundamentals look good.

The bigger takeaway from this video isn’t necessarily any single stock.

It’s what these stocks collectively tell us about the market.

We’re seeing stronger breadth.

We’re seeing more upside participation.

We’re seeing growth regain leadership.

And we’re seeing opportunities appear across a wider range of industry groups.

If this uptrend continues, I want to keep following that strength and let the market tell me where capital is flowing.

Stay with the strongest groups. Find the strongest stocks inside them. Then wait for price to give you a reason to act.

Let’s get into the charts.