US Industry Groups by Highest RS Score
Semiconductors $DJUSSC held on at the top of the US Industry Group RS Rankings with a further week of consolidation near to the 2021 highs, with a three weeks tight pattern. But the Automobiles $DJUSAU group was once again the standout group for another week, which I discussed in last weeks post, when TSLA was testing the top of it's Stage 1 range, and it has this week followed through strongly with a Stage 2 breakout attempt, that ended the week +12.29% above the breakout level and near to the top of the weekly candle. So TSLA has potentially joined the majority of other mega cap stocks in early Stage 2, and the Automobiles group has risen up to 2nd position overall in the RS rankings table.
US Industry Groups by Weakest RS Score
As you can see from the bottom 12 RS groups in the charts above. It was strong week for many of them with mean reversion moves back towards and over their short-term moving averages in many cases. Which was the opposite to what was happening in the leading groups, which were consolidating with some signs of distribution, and so it will be interesting to see if this weeks strength in the laggard groups can continue or not. As it is a change of behaviour of note.
US 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.