To a chartist like Gene Peroni a company's fundamentals are irrelevant; it's all about the technical pattern. The portfolio manager at Advisors Asset Management (AAM) uses a top and bottom approach to stock picking. It's not enough for Peroni to find a single company he likes, he has to think the sector is shaping up as well.
Through that lens Peroni sees Information Technology, Energy, Healthcare, and Materials/Industrials. Yup, he's playing cyclical names in a world seemingly gone to the dogs. Hey, you'll get nowhere debating fundamentals with a pure chartist such as Peroni, the man sees what he sees and tunes out the noise. Given the absurdities emanating from our nation's Capital of late some ear plugs and price graphs seem like a great idea right about now.
Thus with no further ado here are the sectors and stocks Peroni likes now.
Crane Company (CR): the company has diversified out of the toilets of which Nesto seems so fond, and gone into slightly more highbrow industries such as Aerospace. Peroni notes that many of the stocks he likes have ties to Aerospace including Heico (HEI).
Apple (AAPL): The most important stock in the world is a hold in Peroni's world but worth mention because of the House of Jobs' tight relationship with the NASDAQ. Peroni isn't a huge lover of Apple here, preferring more mid-cap tech names like F5 (FFIV) (an off-camera pick).
Carbo Labs (CRR): Carbo is in the biz of increasing safety in the oilfield and gas services industry. Unless you think the howling between the Greens and Big Energy is going to calm down anytime soon you may think the fundamental tailwinds of the industry may be helping inflate the stock.
Five picks and a bonus! Not much else to say here which is another bonus when writing about technical picks. Check out the charts, watch the video and let us know what you think in the comment section below.