How To Quickly Capitalize On Shifts In Stock Market Leadership

Sector rotation has been on display in the stock market for several weeks now. Thursday’s action, for example, was enough to give investors a serious case of vertigo.

Just when it looked as if artificial intelligence stocks were ready to surrender their leadership to biotech, gold players and other health care related names, a strong earnings report from Nvidia (NVDA) reignited a rally in AI stocks Thursday morning. And just as fast as the rally came, it went.

There’s good news, though. You can monitor sector rotation electronically every day at Investors.com.

Just go to the Stock Lists tab at the top of the homepage. Over on the right, click IBD Data Tables; then on the top left, click IBD Smart NYSE + Nasdaq Tables.

Every day, Investor’s Business Daily ranks 33 sectors based on a combination of fundamental and technical factors. Click on any sector name and you’ll get a list of top-performing stocks in the sector. Stocks shown in blue either rose one point or more and/or hit a new 52-week high. Stocks in red fell one point or more and/or hit a 52-week low.

As of Wednesday’s close, IBD’s mining sector was ranked No. 1. Leaders in the sector like gold producers Agnico Eagle Mines (AEM) and Kinross Gold (KGC) started off the list. Both are members of the Leaderboard model portfolio.

Stock Market Sectors: Digging For Performers

But the mining sector holds a lot more than just top-performing gold stocks. Some copper producers are doing well, including Southern Copper (SCCO), which is currently testing its 10-week moving average for the first time after clearing a shallow cup base in September.

Scan the mining sector a bit more at Investors.com, and you’d also be introduced to Ero Copper (ERO), a little-known, yet fast-growing copper producer based in Vancouver, B.C. The small cap is sculpting a bullish cup base while showing supporting action at its 10-week line.

Semiconductor stocks have generally done well since the stock market bottomed in April. That’s helped lift the chip sector to a ranking of No. 4 through Wednesday.

Former leader and chip designer Astera Labs (ALAB) was in italics because it was an initial public offering within the last two years with an Earnings Per Share Rating and Relative Strength Rating of 85 or higher. Despite a strong gain during Thursday’s AI rally, Astera was still on a harsh downtrend, about 40% off its high and far below its 10-week line.

Group peer Broadcom (AVGO) looked much better, though, as it powered higher and reclaimed a prior 363.24 handle buy point. Broadcom’s fiscal year ends in October, which means its next earnings report isn’t far off. Last year, it reported fiscal fourth-quarter results on Dec. 12.

In the chip-equipment group, Applied Materials (AMAT) is in an alternate buy zone as it makes a bullish first test of its 10-week average.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

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