Stage Analysis Video Training Course

US Stocks Industry Groups Relative Strength Rankings

The full post is available to view by members only. For immediate access:

US Industry Groups by Highest RS Score

Renewable Energy Equipment group ($DWCREE) continues to hold onto the top spot in the Industry Group RS rankings. However, it was one of the worst hit groups this week with a -10.42% decline, but even that wasn't enough to dislodge it, as so many other groups also had a terrible week, with only 4 closing the week higher of the 104 groups.

Home Construction ($DJUSHB) was a standout group this week with 2/3rds of the group trading above their 200 day MA, with most of the stocks either testing the Stage 2 level or consolidating below it in Stage 1 still. The group rose a further 14 RS points, to end the week in 15th place overall and is testing the Stage 2 breakout level once more, but with the broad market weakness it was only able to manage an inside bar for the week. But outperformed the S&P 500 by 2.9%. 

So the stocks in the Home Construction group might be worth researching further, as if the market strengths at all, then multiple stocks on the group are in position for Stage 2 breakouts attempts from well defined Stage 1 base structures. 

The current RS leader in the group is DHI, which broke out into early Stage 2 on the 10th November and was highlighted in the Stage Analysis Watchlist posts multiple times before and after the breakout move. Attached is the weekly and daily charts below along with the weekly group chart.

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.

Become a Stage Analysis Member: 

To see more like this and other premium content, such as the regular US Stocks watchlist, detailed videos and intraday posts, become a Stage Analysis member.

Join Today

Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.