3 Hottest Trades in 3 Hot Sectors

• »

Sometimes the "great economic thinkers" can be a little slow on the uptake. How many times during the past few months have we heard that the top is in? And, yet, as I have been saying all along, we keep making new highs. And how many times have we heard that this is going to be a "U," "W," or even an "L-shaped" recovery? We've covered almost every letter in the alphabet to describe this recovery, but I have only one letter for you, "P" -- and that stands for PROFITS!

So I'm going to give you three of the hottest stocks to trade in three hot sectors. These companies are about to report earnings, and they will almost surely explode the day they report, or shortly thereafter.

How do I know which stocks are going to be the monster movers? Well, it's based on how investors will react to their upcoming earnings announcements. And by using technical analysis, we can tell what investors' reaction will be before they even know what it is. The best analogy I can think of is that technical analysis is the Doppler radar, which can pick up storm activity when it is still many miles away, telling you in which direction the storm is moving and how fast it's coming at you. So technical analysis takes the emotion out of trading, allowing us to anticipate how investors will react given a certain set of events, so we can make our moves in anticipation of their reactions.

Keep reading to find out what the hot sectors are and the best stocks to trade now.

Next: Hot Sector #1