The Big Chart

The big chart may help to see where the institutional money is flowing. I measures weekly percentage of the industry compared to the others. If the rank of the industry is X than the average companies in that group outperformed x percentage of the average companies in the other industries.

Red - money moving out of industry or just staying out.
Yellow- If previous week was green than money moving out of industry ,
If previous week was red than money moving into industry ,
If previous week was yellow than unchanged.
Green -money moving into the industry or just staying in.

Focus on the industries which have the most stocks in them.

To find an potential emerging industry look for one with one or two yellows on the left and on the right reds with increasing numbers written in their square.

To identify potential stocks in a strong industry group

Check the phase 2 score
F/E >= 3.25
Price pattern >=2.5

Place them in a watch list or the portfolio

Looking on best/worst is especially good when the market is going down. It helps to identify groups which are going sideways or going up and resisting the downturn. If they are non defensive groups then they have a chance to rally strong when the market will recover.

Diversificaation

1)Have at least half of industry group of the number of stocks you have.
2)Avoid similar groups.
3)Change when there is group rotation.
4)Rebalance when a group performed very well and is a larger part of the portfolio.
5)Use ETFs