Reviewing Sector Greed
Now that you’ve used the screener to generate a list of qualifying stocks, possibly up to 100, you need to narrow it down intelligently. In this step, you’ll choose one stock per sector, validate the sector alignment with both breadth and heat map, and then refine your scan by removing sectors that don’t fully align with the trend.
What You Do
1. Choose One Stock Per Sector
○ From your screener results, select one stock from each sector that appeared in the scan.
○ This helps you sample across all sectors showing bullish or bearish setups.
2. Check Sector Behavior on Each Stock's Page
○ For each stock, look down on the page to locate its sector-level information.
○ You're analyzing two things:
▪ Breadth – Is it moving up (bullish) or moving down (bearish)?
▪ Greed/Fear Heat Map – Is it getting more greedy (bullish) or getting more fearful (bearish)?
3. Match the Trend Type
○ If you're running a bullish scan:
▪ Confirm that the sector's breadth is moving up AND greed is increasing.
○ If you're running a bearish scan:
▪ Confirm that the sector's breadth is moving down AND fear is increasing.
4. Eliminate Misaligned Sectors
○ If a sector’s breadth and heat map don’t match the direction you're scanning for, eliminate that sector.
○ You only want to continue with sectors showing trend alignment across both metrics.
5. Rerun the Screener
○ After removing non-qualifying sectors, rerun your screener.
○ This gives you a cleaner, more focused list of stocks, fully aligned with the strongest trend signals.
This step ensures you're not just filtering at the stock level, but also validating the strength and consistency of the sector-level environment behind each trade. It's one of the most important steps to avoid weak setups and stay aligned with the broader trend structure.
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