--- title: Are you watching the behaviour of leading stocks? description: Throughout the year, come rain or shine, we love to watch the daily activity of the market’s best stocks. image: https://www.isaco.co.uk/hs-fs/file-69324868-jpg/images/are_you_watching_the_behaviour_of_leading_stocks-.jpg --- [![investment guidance service](https://www.isaco.co.uk/hs-fs/file-17903709-png/images/template/logo.png)](https://www.isaco.co.uk/) 0800 170 7750Monday to Friday 8.30am - 6.00pm [Client Log-In](http://members.isaco.co.uk/wp-login.php) - [![x](https://www.isaco.co.uk/hs-fs/hubfs/images/template/social-icons/x.png?width=24&height=24&name=x.png)](https://twitter.com/isaco_) - [![linkedin](https://www.isaco.co.uk/hs-fs/hubfs/images/template/social-icons/linkedin.png?width=24&height=24&name=linkedin.png)](http://www.linkedin.com/company/isaco-ltd) - [![facebook](https://www.isaco.co.uk/hs-fs/file-17902759-png/images/template/icon-facebook.png)](http://www.facebook.com/pages/Isaco/261073283963679) - [![twitter](https://www.isaco.co.uk/hs-fs/file-17903368-png/images/template/icon-twitter.png)](https://twitter.com/isaco_) - [![linkedin](https://www.isaco.co.uk/hs-fs/file-17903004-png/images/template/icon-linkedin.png)](http://www.linkedin.com/company/isaco-ltd) # Are you watching the behaviour of leading stocks? Posted by [Stephen Sutherland](https://www.isaco.co.uk/blog/author/stephen-sutherland) on Wed, Jun 26, 2013 @ 01:30 PM - [Tweet](https://twitter.com/share) ![Are you watching the behaviour of leading stocks ](https://www.isaco.co.uk/hs-fs/file-69324868-jpg/images/are_you_watching_the_behaviour_of_leading_stocks-.jpg)Throughout the year, come rain or shine, we love to watch the daily activity of the market’s best stocks. The reason we watch them like a hawk is because they tend to lead the market higher – and lead the market lower – before the general market catches on. This means that they are a very good indicator of which direction the market is likely to head next. If you would like to know more, why not download our latest free report [Gauging Stock Market Direction](https://info.isaco.co.uk/gauging-stock-market-direction). For example, back in 1999 during the technology bubble, leading stocks at the time were equities such as Yahoo! and Microsoft. As you can see on this 20 year chart of the NASDAQ Composite, the general market topped in March 2000.   [![Image 54 March 2000 top](https://www.isaco.co.uk/hs-fs/file-69302512-png/images/image_54_march_2000_top.png?width=600&height=382&name=image_54_march_2000_top.png)](https://www.isaco.co.uk/hs-fs/file-69302512-png/images/image_54_march_2000_top.png) The market may have topped in March 2000, however Microsoft (ticker symbol: MSFT), a leading stock at the time, topped in December 1999, giving investors a signal that the bull market might be close to a top.   [![Image 55 MSFT](https://www.isaco.co.uk/hs-fs/file-69302993-png/images/image_55_msft.png?width=600&height=382&name=image_55_msft.png)](https://www.isaco.co.uk/hs-fs/file-69303129-png/images/image_55_msft1.png) Yahoo! (ticker symbol: YHOO), another leader at the time, topped in January 2000, which was another clue that a top was coming.   [![Image 56 YHOO](https://www.isaco.co.uk/hs-fs/file-69303562-png/images/image_56_yhoo.png?width=600&height=382&name=image_56_yhoo.png)](https://www.isaco.co.uk/hs-fs/file-69303562-png/images/image_56_yhoo.png) As I mentioned, it also happens on the flip side too. Stocks such as Rio Tinto (ticker symbol: RIO) and BHP Billiton (ticker symbol: BHP) were two of the leading stocks at the start of the bull market that began in 2009.   [![Image 57 Bull market begins](https://www.isaco.co.uk/hs-fs/file-69304067-png/images/image_57_bull_market_begins.png?width=600&height=383&name=image_57_bull_market_begins.png)](https://www.isaco.co.uk/hs-fs/file-69304067-png/images/image_57_bull_market_begins.png) Therefore, it’s interesting to note that BHP Billiton bottomed in November 2008, four months before the market turned around.   [![Image 58 BHP](https://www.isaco.co.uk/hs-fs/file-69306160-png/images/image_58_bhp.png?width=600&height=382&name=image_58_bhp.png)](https://www.isaco.co.uk/hs-fs/file-69306160-png/images/image_58_bhp.png) It’s also interesting to see Rio Tinto (another leader in 2009 and 2010) bottoming out in December 2008, which was three months before the 2009 bull market began.   [![Image 59 RIO](https://www.isaco.co.uk/hs-fs/file-69306484-png/images/image_59_rio.png?width=600&height=382&name=image_59_rio.png)](https://www.isaco.co.uk/hs-fs/file-69306484-png/images/image_59_rio.png) It’s also good to know that a leading stock can become a laggard stock. A leading stock is one with an RS (relative strength) rating of 80 or above and an EPS (earnings per share) rating of 80 or above. Stocks’ ratings change on a daily basis, which means it’s probably a good idea to always have a list of stocks that you class as leaders and continually work on adding new members to the list and removing stocks that no longer match your leading stock criteria.  As always, if you have any questions or thoughts on the points covered in this post, please leave a comment below or connect with us [@ISACO_](http://www.twitter.com/ISACO_) on Twitter. ## About ISACO ISACO is a specialist in ISA and SIPP Investment and the pioneer of ‘Shadow Investment’, a simple way to grow your ISA and SIPP. Together with our clients, we have £57 million actively invested in ISAs and pensions*.  Our personal investment service allows you to look over our shoulder and buy into exactly the same funds as we are buying. These are investment funds that we personally own and so you can be assured that they are good quality. We are proud to say that by ‘shadowing’ us, our clients have made an annual return of 12.5% per year over the last four years** versus the FTSE 100’s 7.4%.  We currently have close to 400 carefully selected clients. Most of them have over £100,000 actively invested and the majority are DIY investors such as business owners, self-employed professionals and corporate executives. We also have clients from the financial services sector such as IFAs, wealth managers and fund managers. ISACO Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Our firm reference number is 525147. * 15th November 2012: Internal estimation of total ISA and pension assets owned by ISACO Investment Team and ISACO premium clients.  ** (31st December 2008 - 31st December 2012).  ISACO investment performance verified by Independent Executives Ltd.    **[ To download our free report 'A Golden Opportunity' >> ](https://www.isaco.co.uk/a-golden-opportunity/)** [ **To download our Shadow Investment brochure >>**](https://web.isaco.co.uk/isaco-wealth-b) **[ To start your 14 day free 'no obligation' trial of Shadow Investment >> ](https://www.isaco.co.uk/14-day-free-trial/)**   [![ISACO free telephone consultation](https://no-cache.hubspot.com/cta/default/142026/98e21060-a2d6-4959-8bb6-7d8b7833d168.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/98e21060-a2d6-4959-8bb6-7d8b7833d168)   Topics: [ISA investing tips](https://www.isaco.co.uk/blog/topic/isa-investing-tips), [Investment strategy](https://www.isaco.co.uk/blog/topic/investment-strategy) ### Subscribe by Email [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/07d30346-56f4-4eb5-8ed0-732a7176cee7.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/07d30346-56f4-4eb5-8ed0-732a7176cee7) [![Is it time to raise cash?](https://no-cache.hubspot.com/cta/default/142026/460b895e-92d4-40cb-8d29-7790bbfaa396.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/460b895e-92d4-40cb-8d29-7790bbfaa396) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/fc21adc1-6c65-42a1-a7bc-625e3a3d87f2.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/fc21adc1-6c65-42a1-a7bc-625e3a3d87f2) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/1280942b-07b3-4031-a3e3-ca2a58a1c4a3.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/1280942b-07b3-4031-a3e3-ca2a58a1c4a3) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/89440174-6d63-4ad1-9b1f-b23afa9db5e5.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/89440174-6d63-4ad1-9b1f-b23afa9db5e5) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/0805d531-f087-4c6c-a8fd-cf98898cc3d3.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/0805d531-f087-4c6c-a8fd-cf98898cc3d3) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/c51c17cd-c584-4439-a783-bc8393f9dc7b.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/c51c17cd-c584-4439-a783-bc8393f9dc7b) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/b1a3dfec-b16c-4874-ac7b-3d9d4053d24f.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/b1a3dfec-b16c-4874-ac7b-3d9d4053d24f) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/069a2c1d-3aec-4e0f-8fda-511e276f2a54.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/069a2c1d-3aec-4e0f-8fda-511e276f2a54) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/7cf5fc26-865a-409a-9000-3b7288287a9c.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/7cf5fc26-865a-409a-9000-3b7288287a9c) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/f755ac27-21f3-431a-94ba-c88714d9f314.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/f755ac27-21f3-431a-94ba-c88714d9f314) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/72356409-308d-4e04-a834-6946c1241c5b.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/72356409-308d-4e04-a834-6946c1241c5b) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/142026/bbd6ce7f-1a57-4c9d-9442-8c08f9f6dcf5.png)](https://cta-redirect.hubspot.com/cta/redirect/142026/bbd6ce7f-1a57-4c9d-9442-8c08f9f6dcf5) ### Recent Posts ### Most Popular Posts ### Categories - [About ISACO (2)](https://www.isaco.co.uk/blog/topic/about-isaco) - [Achieving your investment goals (65)](https://www.isaco.co.uk/blog/topic/achieving-your-investment-goals) - [Behavioural Investing (13)](https://www.isaco.co.uk/blog/topic/behavioural-investing) - [Better performance (38)](https://www.isaco.co.uk/blog/topic/better-performance) - [Better protection (14)](https://www.isaco.co.uk/blog/topic/better-protection) - [Choosing a fund (1)](https://www.isaco.co.uk/blog/topic/choosing-a-fund) - [Client stories (2)](https://www.isaco.co.uk/blog/topic/client-stories) - [Creating an income for life (3)](https://www.isaco.co.uk/blog/topic/creating-an-income-for-life) - [Essential reading (8)](https://www.isaco.co.uk/blog/topic/essential-reading) - [FAQs (7)](https://www.isaco.co.uk/blog/topic/faqs) - [Finding a good growth fund (6)](https://www.isaco.co.uk/blog/topic/finding-a-good-growth-fund) - [Fund timing (4)](https://www.isaco.co.uk/blog/topic/fund-timing) - [Guest blogs (2)](https://www.isaco.co.uk/blog/topic/guest-blogs) - [How to Make Money in ISAs and SIPPs (21)](https://www.isaco.co.uk/blog/topic/how-to-make-money-in-isas-and-sipps) - [Investing for children (4)](https://www.isaco.co.uk/blog/topic/investing-for-children) - [Investment charges (6)](https://www.isaco.co.uk/blog/topic/investment-charges) - [Investment funds (50)](https://www.isaco.co.uk/blog/topic/investment-funds) - [Investment Guidance (4)](https://www.isaco.co.uk/blog/topic/investment-guidance) - [Investment Guidance Service (6)](https://www.isaco.co.uk/blog/topic/investment-guidance-service) - [Investment mistakes (21)](https://www.isaco.co.uk/blog/topic/investment-mistakes) - [Investment news (60)](https://www.isaco.co.uk/blog/topic/investment-news) - [Investment opportunities (10)](https://www.isaco.co.uk/blog/topic/investment-opportunities) - [Investment outlook (18)](https://www.isaco.co.uk/blog/topic/investment-outlook) - [Investment risk (8)](https://www.isaco.co.uk/blog/topic/investment-risk) - [Investment strategy (180)](https://www.isaco.co.uk/blog/topic/investment-strategy) - [Investment tutorials (17)](https://www.isaco.co.uk/blog/topic/investment-tutorials) - [ISA growth (41)](https://www.isaco.co.uk/blog/topic/isa-growth) - [ISA investing tips (50)](https://www.isaco.co.uk/blog/topic/isa-investing-tips) - [ISA millionaires (8)](https://www.isaco.co.uk/blog/topic/isa-millionaires) - [ISACO Alpha (1)](https://www.isaco.co.uk/blog/topic/isaco-alpha) - [ISACO client interviews (2)](https://www.isaco.co.uk/blog/topic/isaco-client-interviews) - [ISACO vs an adviser (8)](https://www.isaco.co.uk/blog/topic/isaco-vs-an-adviser) - [ISACO Wealth (6)](https://www.isaco.co.uk/blog/topic/isaco-wealth) - [Junior ISAs (6)](https://www.isaco.co.uk/blog/topic/junior-isas) - [Managing your portfolio (5)](https://www.isaco.co.uk/blog/topic/managing-your-portfolio) - [NISA (5)](https://www.isaco.co.uk/blog/topic/nisa) - [Retirement planning (2)](https://www.isaco.co.uk/blog/topic/retirement-planning) - [Shadow Investment (2)](https://www.isaco.co.uk/blog/topic/shadow-investment) - [SIPP investing tips (20)](https://www.isaco.co.uk/blog/topic/sipp-investing-tips) - [Stock market direction (6)](https://www.isaco.co.uk/blog/topic/stock-market-direction) - [Stock market Outlook (5)](https://www.isaco.co.uk/blog/topic/stock-market-outlook) - [Stock Market Summary (244)](https://www.isaco.co.uk/blog/topic/stock-market-summary) ### Archive - [January 2020 (1)](https://www.isaco.co.uk/blog/archive/2020/01) - [January 2019 (1)](https://www.isaco.co.uk/blog/archive/2019/01) - [October 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/10) - [July 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/07) - [March 2018 (1)](https://www.isaco.co.uk/blog/archive/2018/03) - [May 2017 (1)](https://www.isaco.co.uk/blog/archive/2017/05) - [March 2016 (1)](https://www.isaco.co.uk/blog/archive/2016/03) - [February 2016 (2)](https://www.isaco.co.uk/blog/archive/2016/02) - [January 2016 (2)](https://www.isaco.co.uk/blog/archive/2016/01) - [December 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/12) - [November 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/11) - [October 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/10) - [September 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/09) - [August 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/08) - [July 2015 (3)](https://www.isaco.co.uk/blog/archive/2015/07) - [May 2015 (2)](https://www.isaco.co.uk/blog/archive/2015/05) - [April 2015 (2)](https://www.isaco.co.uk/blog/archive/2015/04) - [March 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/03) - [February 2015 (5)](https://www.isaco.co.uk/blog/archive/2015/02) - [January 2015 (4)](https://www.isaco.co.uk/blog/archive/2015/01) - [December 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/12) - [November 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/11) - [October 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/10) - [September 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/09) - [August 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/08) - [July 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/07) - [June 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/06) - [May 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/05) - [April 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/04) - [March 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/03) - [February 2014 (4)](https://www.isaco.co.uk/blog/archive/2014/02) - [January 2014 (5)](https://www.isaco.co.uk/blog/archive/2014/01) - [December 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/12) - [November 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/11) - [October 2013 (5)](https://www.isaco.co.uk/blog/archive/2013/10) - [September 2013 (4)](https://www.isaco.co.uk/blog/archive/2013/09) - [August 2013 (6)](https://www.isaco.co.uk/blog/archive/2013/08) - [July 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/07) - [June 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/06) - [May 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/05) - [April 2013 (7)](https://www.isaco.co.uk/blog/archive/2013/04) - [March 2013 (9)](https://www.isaco.co.uk/blog/archive/2013/03) - [February 2013 (13)](https://www.isaco.co.uk/blog/archive/2013/02) - [January 2013 (27)](https://www.isaco.co.uk/blog/archive/2013/01) - [December 2012 (25)](https://www.isaco.co.uk/blog/archive/2012/12) - [November 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/11) - [October 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/10) - [September 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/09) - [August 2012 (36)](https://www.isaco.co.uk/blog/archive/2012/08) - [July 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/07) - [June 2012 (34)](https://www.isaco.co.uk/blog/archive/2012/06) - [May 2012 (35)](https://www.isaco.co.uk/blog/archive/2012/05) - [April 2012 (27)](https://www.isaco.co.uk/blog/archive/2012/04) - [March 2012 (32)](https://www.isaco.co.uk/blog/archive/2012/03) - [February 2012 (13)](https://www.isaco.co.uk/blog/archive/2012/02) - [January 2012 (6)](https://www.isaco.co.uk/blog/archive/2012/01) - [December 2011 (3)](https://www.isaco.co.uk/blog/archive/2011/12) © ISACO Ltd, 82 King Street, Manchester, M2 4WQ. ENGLAND Tel: 0800 170 7750 | [Data Protection & Privacy Policy](https://www.isaco.co.uk/privacy-policy) | [Terms and Conditions](https://www.isaco.co.uk/terms-and-conditions) | Fax: 0870 757 8660 **ISACO Ltd is Authorised and Regulated by the Financial Conduct Authority**