Sometimes when the stock market rallies, it’s like pulling teeth. One or two of the major averages might make a marginal new high. But the others don’t confirm it, and it comes on very little volume. Then when you look behind the headlines, you see it’s just one or two sectors doing the heavy lifting.
Not this time.
If anything, I’m surprised by just how many sectors and stocks are making big moves — and I’m finding profit opportunities in a wide variety of them.
Case in point: I was looking for new potential recommendations the other day, and I noticed a little-followed corner of the market was rallying sharply. I’m talking about multiple breakouts from multiple industry players — on heavy volume. That sector? RV and boat manufacturer and suppliers.
|The RV sector is making a comeback.|
One of my favorite sector players makes the iconic “silver bullet” Airstream trailers, while another makes everything from bowling alley equipment to pool tables and boats. Both of those stocks are on fire. A smaller player in the marine industry just staged its biggest upside breakout going all the way back to the mid-2000s, when everyone and his sister were taking out home equity lines of credit to buy “toys”!
But that’s just one sector example. Several restaurant and retail stocks have been rallying strongly too. I’m not talking about dinosaurs like McDonald’s (MCD, Weiss Ratings: C+), which have lost their way. I’m talking about fast-casual chains, and one much better run fast-food company whose shares I recently recommended in my Safe Money Report. They just broke out to an all-time high!
Aerospace? That’s another sector where several of the stocks I follow are en fuego! I’m looking to recommend one or two of them shortly, and one look at the very attractive chart of the PowerShares Aerospace & Defense Portfolio (PPA) will tell you why!
On the other end of the spectrum, beaten-down sectors like energy and foreign stocks are starting to perk up. The Johnny-Come-Lately ratings agencies are starting to downgrade countries like Russia and companies like Petrobras (PBR) to “junk” status based on their usual backward-looking analysis.
But investments like the Market Vectors Russia ETF (RSX) — which I recommended to subscribers in one of my trading services a little while ago — are soaring. The ETF was recently up a whopping 18 percent year-to-date!
In short, many investments that I’m zeroing in on are doing much better than the broader averages. The recent gains are also being confirmed by a lot of individual sectors and stocks.
That doesn’t mean it’s all clear blue skies and smooth sailing from here — corrections can and do happen. There are plenty of doggy stocks out there I wouldn’t touch with a ten-foot pole! But it does mean you can’t lose sight of the opportunities out there, because they can definitely make you richer!
Until next time,