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US Stocks Industry Groups Relative Strength Rankings

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US Industry Groups by Highest RS Score

The top three in the Industry Groups Relative Strength (RS) Rankings remained unchanged this week, with Coal ($DWCCOA), Travel & Tourism ($DJUSTT) and Home Construction ($DJUSHB) all pushing to new 52 week highs. But of note at the upper end of the RS rankings this week was the Clothing & Accessories ($DJUSCF) and Steel ($DJUSST) groups, which both added +24 RS points to move into the top 10 of the RS rankings, with multiple stocks in each moving higher in Stage 2. For example in the Clothing & Accessories group – LULU, UAA (Stage 2 breakout), PVH, and in the Steel group – SID, ASTL, CLF (Stage 2 breakout), STLD.

But the strongest area this week was lower down the RS rankings, as Gold Mining ($DJUSPM) rose up the rankings by +25 RS points to 69th place overall and by +8.89%. With numerous stocks making double digit moves, as physical gold attempted to move back into early Stage 2, which was discussed on the midweek video.

US Industry Groups by Weakest RS Score

The bottom end of the RS rankings is continuing to improve, with the majority of the weakest groups holding above their 50 day MAs. i.e. potential Stage 4B- position. 

Aluminium ($DJUSAL) continues to be at the bottom of the rankings, along with Renewable Energy Equipment ($DWCREE), and one of the Oil groups – Integrated Oil & Gas ($DJUSOL) has now dropped into the bottom 10, as the energy groups continue to decline in the RS rankings in the fourth quarter.

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 videoas 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.