US Industry Groups by Highest RS Score
Above is the top 12 industry groups thumbnail charts by Relative Strength (RS) score. Of note this week was the resurgence in strength of the Energy sector stocks, with the five fossil fuel groups in the top 10, and four of those in the top 5.
Exploration & Production and Integrated Oil & Gas both made new highs and continue to be in late Stage 2. Which is known as Stage 2B. Coal continues to lead the group relative strength table though, although the group chart is still consolidating with decreasing volatility. But multiple stocks in the group have now reported earnings, and we continue to see new highs in many – which is in sharp contrast to the rest of the market.
US Industry Groups by Weakest RS Score
On the other end of the spectrum. The weakest groups continued to make new lows in Stage 4, and there were big RS declines in Travel & Tourism, Clothing & Accessories and Publishing – all of which dropped into the bottom part of table. A couple of notable Stage 4 moves in the Publishing group in News corp (NWS) and the New York Times (NYT) for example.
104 Dow Jones 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 breakout 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.