Today, we will take a look at the white goods sector. Many stocks were performing quite well till the September or October, but now majority of the stocks have dropped below their earlier intermediate bottoms and their respective 30 WMA and are in a major downtrend.There were many stocks which were unaffected in major uptrend and were languishing below their base values. In a bear market, these stocks will not be traded daily. Investors must stay away from the stocks and must look out for small short positions in the stock if they breakdown from the current sideways zone.

BPL
BPL topped out in October 1999 and since then the stock has been exhibiting a bearish relative strength. The stock has dropped below its 30 WMA and its earlier intermediate bottom suggesting that the major trend of the stock is down. The relative strength line for the stock is bearish as it has dropped below its zero line suggesting that the stock is underperforming the indices and investors must stay away from the stock. The stock is currently moving in a narrow range and a fall below from the current sideways move will mean that the stock will see lower levels soon. Traders can look out for short positions in the stock on a fall below 312. However, a close above 340 will take thestock into a fresh intermediate uptrend.

Mirc Electronics
Mirc Electronics has formed an intermediate top in October and has been drifting down like majority of the stocks in the cash groups. However, the major trend of the stock is up and though the relative strength line is moving down, it is still well above its zero line and investors must stay invested in the stock. The stock is still well above its rising 30 WMA and unless the stock exhibits lower intermediate tops, investors must stay invested in the stock. However, a major down trend in the sector could also affect the stock.

Philips
Philips has been exhibiting a bearish performance. Though the stock went into a major uptrend since 1998, the relative strength line for the stock was bearish and the stock was underperforming the indices. The stock is now closer to its earlier major bottom and a close below 85.50 will be quite bearish. Traders can go short as lower levels in the stock will be seen soon.

VideoconInternational
Videocon Intl went topped out in September and the stock dropped below its 30 WMA. The relative strength line for the stock was weak and had already dropped below its zero line suggesting that the stock was underperforming the indices and would soon go into a major downtrend. Investors must stay away from the stock. Traders can look out for short positions in any minor rise.

Videocon VCR
Videocon VCR is the only stock in the white goods sector which is in a major uptrend and making a new high. However, as the stock is not the leader in the sector, investors must stay away. Once the sector bottoms out, they must look out for leaders in the sector. However, traders may benefit by trading on the long side. The stock has a reputation of falling sharply and traders must also get out of it without waiting for a sell signal.

Salora International
Salora is also in a major uptrend as the stock has been staying above its rising 30 WMA and its earlier intermediate top.However, the stock has been in a strong intermediate downtrend since it made an intermediate top in October and the stock may have topped out in the last week of October. A lower intermediate top will suggest that the major trend of the stock is down and should be used by investors to get out of the stock. The trading volume is quite thin and hence it is difficult for investors to get out if they hold on to large quantities. Look out for stocks which are regularly traded with high volumes.