US Industry Groups by Highest RS Score
Home Construction $DJUSHB once again holds onto the top position in the Industry Groups Relative Strength (RS) Rankings with it pulling back towards its 21 day EMA. But one of the most notable group themes this week was in Coal ($DWCCOA), in which every stock in the group ended the week higher. i.e. METC, AMR, BTU and ARCH to name a few. With group rising +29 RS points to 7th position overall.
Banks ($DJUSBK) was another area showing strong RS, rising a further +7 RS points to move to 3rd position overall, and it's now risen +56 RS points in the last quarter with multiple bank stocks appearing in the watchlist posts recently. So it has risen from the lower half of the table into the top 10. But the group is still in the early part of the Stage 2 advancing phase after spending the majority of the last two years moving between Stage 4 declines and Stage 1 bases.
US Industry Groups by Weakest RS Score
Auto Parts ($DJUSAT) dropped to the bottom of the RS rankings, with the group in Stage 4B- position and managed to recover its 50 day MA after opening below on Thursday. But with some notable volume in the group on Thursday and Friday.
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.