US Industry Groups by Highest RS Score
A strong recovery in the Home Construction ($DJUSHB) group this week, following last weeks pullback into its 21 day EMA. Pushing the group to new all-time highs again and recovering +6 RS points to end the week in 3rd place overall.
Automobiles ($DJUSAU) retained the lead for another week, with Semiconductors ($DJUSSC) recovering into 2nd place and Internet ($DJUSNS) moving up to 4th. Whilst Recreational Services ($DJUSRQ) dropped down -3 RS points to 5th overall, with a four day pullback in the group towards its 21 day EMA.
Travel & Tourism ($DJUSTT) also rising up the RS rankings this week with three of the major stocks in the group breaking out. i.e. ABNB and EXPE are both making early Stage 2 breakout attempts, but are not yet completely clear of overhead resistance, while the group leader BKNG, which broke out into early Stage 2 in the first week of January, made a Stage 2 continuation breakout attempt from a multi-month base structure.
US Industry Groups by Weakest RS Score
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.