Leaders in Leading Groups

Why the strongest stocks usually come from the strongest industries, how to spot the leading groups, and what the 2026 technology run looked like.

Stocks move in herds

A large part of any stock’s move comes from its sector and industry. When big investors decide that semiconductors, software or energy are the place to be, they buy many companies in that group at once. That lifts the whole group, and the best companies in it rise the most.

So traders look top-down: first find the leading sectors and industry groups, then find the leaders inside them. A great company in a weak group has to fight the current. A great company in a strong group has the current behind it.

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