Biotechs ruled the second. Today, like faded high school football stars, both groups can only brag of their past deeds. The stocks on each team are severely injured and will take time to get back into winning shape. But there's always another group itching to lead the stock market. Market winners usually travel in packs.
Stocks owe roughly half their price movement to their industry groups.
Research shows that two out of three leading stocks were part of a leading group or sector. When the market is working through a correction, it's important to pay attention to which industry groups are flexing their muscles. There's no guarantee past leaders will reassert themselves once the broad market recovers. One way to find the stocks that may lead the market's next charge is to keep an eye on IBD's industry group ratings. The list divides stocks into 197 categories.