As an investor it’s smart to follow the money. Big institutions and mutual fund managers have the money and power to drive prices higher when they decide to buy. Because of their size, they usually take months of buying before their positions in a company is filled.

Why not take advantage of their power and get in on the stocks they want and enjoy the ride as they push prices higher?

Whether you think the market is going up or down, below is a list of the industries and stocks that are performing the best in each type of market.

If you think the markets are in a downtrend from the April 23 top:

The best performing sector is the Real Estate Management/Developement sector which gained 51.52% since April 23. Some hot stocks in that sector: IRS, STWD, EJ, CRIC (listed in no particular order)

If you think the markets bottomed last Friday and are now in rally mode:

The best performing sector is the Steel sector which gained 10.89% since July 7 (four trading days ago). Some hot stocks in that sector: TIE, RTI, SID, SHLO (listed in no particular order)

The eight hot stocks listed above are some of my favorites as of this date. When to sell is up to you. To find more stocks in these sectors visit Yahoo Finance.