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US Stocks Industry Groups Relative Strength Rankings

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US Industry Groups by Highest RS Score

Renewable Energy Equipment continues to be leading group in the market and managed a minor -0.52% decline compared to the S&P 500 -4.77% decline this week. So continued to show relative strength against the market.

There were very few positive groups this week, with only 5 groups managing to close positively – Diversified REITs (which jumped 20 RS points to 3rd overall), Gold Mining, Automobiles, Mining and Recreational Services. 

Automobiles was featured in last weeks post with TSLA continuing to show strong RS this week versus the S&P 500, and it is in position for a potential Stage 2 breakout attempt in the coming weeks, if the market doesn't collapse, as nothing would be safe in that scenario. But the group edged up a further place, and is now in 6th place overall in the RS rankings.

Group Focus: Investment Services – Stage 1

The Financials sector is a key area that needs to be healthy in order for the market to move into a Stage 2 advancing phase. So it's a potential postive towards the Market Breadth Weight of Evidence to see so many Banks and Investments Services, plus other groups from the sector forming Stage 1 base patterns currently, with numerous stocks from the sector popping up in the watchlist scans over the last few weeks.

Investment Services ($DJUSSB) is one of the areas from the sector coming into focus with the group chart developing in Stage 1, and multiple stocks in the group forming short-term patterns on the daily charts with inverse head and shoulders characteristics and few longer term patterns of interest on the weekly charts. 

A few leading stocks from the group are: NDAQ, LPLA, RJF, IBKR

US Industry Groups by Weakest RS Score

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 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.