Considering about half of a stock's individual performance relies on sector and industry influence rather than the company's merits, it makes sense to stay abreast of industry trends. With that in mind, today I'd like to invest some time in identifying a few industries that are emerging as leaders. In so doing, we'll have a better idea of where to start our search for the next great stock. First though....  What did the community have to say this week? We got a lot of great comments and trading ideas, but those for Smithfield Foods (SFD), Sinovac Biotech (SVA), Verenium (VRNM), Cardiome Pharma (CRME), Huntington Bancshares (HBAN), and Interface (IFSIA) were among the most important. More details and links are below. .   Stocks In Focus Creating and Stirring Up Excitement: ALTH, CPWM, IFSIA  Want to know why Dennis Askew rates Interface, Inc. (NASDAQ:IFSIA) a 'buy' now? He's not the only one. Sun Trust ramped up its opinion on the company from neutral to outperform on the heels of a significant elimination of debt. The fact that Interface shares broke out of a five-month rut in February doesn't hurt either. Technical Outlooks for CAMP, KATX, and HBAN  Huntington Bancshares Incorporated (NASDAQ:HBAN) did indeed make huge progress by getting past a resistance line. The problem is, the stock worked its way into an overbought situation to do so. So how do we handle Huntington Bancshares now? James Brumley offers up a reality check, for better or worse. Three Buys Analysts and Pundits Love: CHINA, CRME, CHOP  Why would an investors be interested in Cardiome Pharma Corp. (NASDAQ:CRME). It could be because of several drugs the company's working on including Vernakalant - an atrial fibrillation treatment currently in Phase III tests on more than one continent. The more powerful reason, however, is the big-name pharmaceutical partner that's decided to ally with Cardiome Pharma. Two Out of Three Ain't Bad: Looks at ACI, VRNM, and APT  Will Verenium Corporation (NASDAQ:VRNM) follow-through on the major technical progress it made yesterday - a multi-year game changer? Or, is today's weakness just the resumption of the weakness we've been seeing for more than three years. Considering the stakes involved in the matter, you'll definitely want to keep an eye on Verenium in the near-term. Check out our chart to see why. Three Bio-Pharmas You Should Buy: SVA, MAPP, CYCC  What does Sinovac Biotech Ltd. (NASDAQ:SVA) have that many other biotech companies don't? For one thing, earnings.... and that's a big enough reason for Dennis Askew to recommend it. Yet, the chart's been trending lower for a few months, creating more value each step of the way. That said, the opportunity behind the current construction of new facilities is starting to get some traction with Sinovac Biotech followers. The Good, the Bad, and the Maybe - ARYX, SFD, and DARA  A little bad - albeit short term - news for Smithfield Foods, Inc. (NYSE:SFD)... the stock's probably set to fall a couple of points after its recent move to multi-year highs. It's simply part of a pattern that's been in place for Smithfield Foods a little too long to ignore now. The chart analyst pinpoints exactly where and why SFD might halt and reverse this pullback. .   The Market's Next Big Thing, By Industry It's not hard to find a rising sector, stock, or industry right now. In fact, it would be hard not to find one. Moreover, when you take a detailed look at charts and recent performance, you quickly realize many stocks are well above their 2007 peak levels, and stretched out quite thinly.  So what? Those groups are also starting to feel the weight of the excessive gains, and slowing down as a result.  In other words, yesterday's leaders aren't apt to be tomorrow's leaders.  My interest lies in tomorrow's leaders.... the next big thing. So, rather than studying with industries or stocks have the best long-term results, I'm actually looking for areas that have lagged over the long-haul, but have started to perk up more recently. The groups below are the ones I feel are best-equipped to turn their short-term technical strength into something much longer-term.  Banking  I know the banking rally has stalled over the last six months while the rest of the market has continued to rise. Yet, I've also observed the S&P 1500 Banking Index sustain its attack on the resistance at the 240 area (red), while making higher lows the whole time. In fact, the group hit new multi-week high this week as the tide turned in favor of the bulls.  The most exciting aspect of this chart, however, isn't that we're seeing progress again - it's the distance between current prices and 2007's high levels. I think there's more remaining recovery room here than with any other industry at this point, with the exception of.....  Coal  After more than a year of higher high and higher lows - and a 115% gain over the last 52 weeks - it's pretty much impossible to say coal stocks aren't recovery-bound as well. Yet, the nay-sayers are out there.... and these stocks are climbing the wall of worry those pundits are building.  Better still, these stocks deserve to climb. Like many other groups, the coal industry has started to grow revenue and earnings again over the last two quarters. A few of these names even have single-digit (and that's a plausible single-digit) forward-looking P/E ratios.  One thing to note....as I mentioned for Arch Coal (ACI) yesterday, I think the ebb and flow within this rising trading range is something you'll want to work with to your advantage. Buy them near the bottom, and sell them near the top - if you have a need to sell them.  Telecom  This is the only sector call I've got today, as opposed to an industry call. Both segments - landline and wireless - have opportunities packed into them.  I'm not really sure why the market loves to hate telecom stocks. I do know that the market doesn't hate them for very long though; we've seen the S&P 1500 Telecom Index push off a long-term support line three times now, with the third instance being the current rebound. As you may have already guessed based on the chart, now's a great time to step into the sector.  That being said, though this is a sector call, I feel picking individual stocks within the group will bear much more fruit than owning a telecom ETF or fund. There's a surprising valuation disparity, and I see no need to carry dead weight along with the winners.  Managed Healthcare  In 2008, between dwindling earnings and the possible healthcare overhaul that Barack Obama was bringing with him to the White House, managed care stocks took it on the chin. In 2009, improved earnings and the realization that any healthcare overhaul is not going to significantly effect the healthcare system (and may even present new income opportunities), the S&P 1500 Managed Healthcare Index began to pull itself back up by its bootstraps..... a trend that's not likely to end soon, in my view.  Is this a momentum play? Like the other three groups above, yes, and there's room for these stocks to run. But, the momentum is supported by results. In simplest terms, the underlying value is there - single-digit P/E ratios are common now, and with each revision of the healthcare reform bill that gets put on the debate table, one of two outcomes becomes clear. The bill will either (1) not pass, which means these stocks won't be affected in the least, or (2) the bill that does pass will be so watered down and/or convoluted, it will be a non-issue. It may even be beneficial to managed care plans, since complexity also creates loopholes.  Either way, these stocks are moving with some conviction. Bottom Line While our ultimate goal is to pick the best of the best individual stocks, sometimes the bottom-up approach can miss the bigger picture. With the method above, it's more of a top-down approach that spots trends you may not have noticed otherwise. And just as importantly, this methodology actually finds groups that are moving, rather than groups that just 'should' move.  In any case, there are four specific places to start your search for your next great stock.        We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC  4653 Carmel Mtn Rd  Suite 308 #402  San Diego, CA 92130   Share the SCN Newsletter If you find the Small Cap Network Newsletter informative and profitable, please forward our newsletter alert service to like-minded friends and associates who share similar market interests.   Ensure Newsletter Delivery To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. 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