Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

There's Always a Bull Market in Something... Really!

One of my favorite tools is to use the stock scans feature of StockCharts.com. Yesterday there were 33 companies that made the Strong Volume Gainers List. This is a useful scan as it will pick up any abnormal buying volume on a company. The reasons for the volume may vary (discovery announcement, takeover news, fund buying etc.) but they are almost always positive. If you are more interested in the dark side you can check the Strong Volume Decliners list.

The Strong Volume Gainers scan is a great tool for finding which sectors that money is rotating into. For example if the list had 10 companies on it and 5 of them were dilithium miners you could do some further research to figure out what was going on in the dilithium space.

Yesterday was pretty quiet on the dilithium front but a quick review of the companies on the scan below indicate that things are picking up for oil and gas service companies, oil sands companies and trusts. This may be related to fund buying as they have to position themselves ahead of the crowd. Often buying like this can create a floor price for your investment.

The resource stock market has taken a deserved breather. However that doesn't mean that there aren't any opportunities out there. How many times does the word "trust" appear on the list?