US Industry Groups by Highest RS Score
The shortened holiday week in the market was fairly quiet, but it did see a change at the top of the Industry Groups Relative Strength (RS) Rankings with Semiconductors ($DJUSSC) dropping -8 RS points to 9th place in the rankings following the negative earnings reaction of NVDA, as it's has a strong weighting in the group. But the overall group was actually fairly mixed with recent IPO stock – ARM, making a strong breakout move from its IPO base structure for example, and pushing back towards the highs, with a +16.17% move for the week.
Coal ($DWCCOA) moved back to the top of the RS rankings, with Travel & Tourism ($DJUSTT) in second place, but neither showed any particular absolute strength with quiet consolidation weeks for both, and so they mainly rose up, due to others pulling back.
US Industry Groups by Weakest RS Score
Aluminium ($DJUSAL) continues to hold at the bottom of the RS rankings, but the group chart and multiple others at the bottom of the rankings are consolidating around their 50 day MAs, and so some of these groups could potentially be in Stage 4B- positions (i.e. have potentially put in lows), and so could become possible mean reversion plays towards their 200 day MAs, if the recent market strength resumes again – the Gold Mining (DJUSPM) group for example.
US Industry Groups sorted by Relative Strength
The purpose of the Relative Strength (RS) tables is to track the short, medium and long-term RS changes of the individual groups to find the new leadership earlier than the crowd.
RS Score of 100 is the strongest, and 0 is the weakest.
In the Stage Analysis method we are looking to focus on the strongest groups, as what is strong, tends to stay strong for a long time. But we also want to find the improving / up and coming groups that are starting to rise up strongly through the RS table from the lower zone, in order to find the future leading stocks before they break out from a Stage 1 base and move into a Stage 2 advancing phase.
Each week I go through the most interesting groups on the move in more detail during the Stage Analysis Members weekend video – as Industry Group analysis is a key part of Stan Weinstein's Stage Analysis method.
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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.