US Stocks Industry Groups Relative Strength Rankings

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US Industry Groups by Highest RS Score

Renewable Energy Equipment group ($DWCREE) continues to hold the top RS ranking as we end 2022. The Oil groups have risen back up the rankings recently. However, the Oil groups have a majority of stocks in late Stage 2 and Stage 3, and Crude Oil Futures are in Stage 4. Hence, they are vulnerable to Upthrusts / Failed continuation breakouts in Stage 3 and Stage 4 breakdown attempts. So those groups are higher risk currently. 

US Industry Groups by Weakest RS Score

Automobiles ($DJUSAU) remains the weakest group by RS ranking as we end 2022. But of note this week was the distributive behaviour in the Coal ($DWCCOA) group as it broke below its 200 day MA in late Stage 3, and so although it was the leading group on a percentage basis in 2022 with an +88.52% gain. It is in a vulnerable position in late Stage 3 as we begin 2023. I did a more in-depth look at the group during the video earlier in the week – Group Focus: Coal Stocks in Late Stage 3 – 28 December 2022 (34mins) – that discusses the group chart on multiple timeframes and Stage Analysis of the individual stocks in the Coal group.

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.