US Industry Groups by Highest RS Score
No change at the top of the Industry Group RS rankings this week with the Renewable Energy Equipment group ($DWCREE) continuing to lead. Nonferrous Metals ($DJUSNF) group was one of the weeks biggest RS gainers, rising 34 RS points to 9th overall, with a number of early Stage 2 breakout attempts in the group in a few of the copper and silver miners. FCX for example made a Stage 2 breakout attempt with a Stage Analysis Technical Attribute (SATA) score increasing from 7 to the maximum 10.
Biotechnology ($DJUSBT) – weekly chart shown below – is another area of interest with it moving higher in early Stage 2 for four weeks and rising a further 16 RS points to 11th overall. A major etf of the group (IBB) made a Stage 2 breakout this week, but the other popular etf (XBI) remains in Stage 1 currently. It's a very large group with 593 stocks, so it takes a lot to move it up the RS rankings. The current RS leader of the group is PRTA.
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 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.