US Industry Groups by Highest RS Score
Semiconductors ($DJUSSC) retained the top spot in the US Industry Group Relative Strength (RS) Rankings for another week, but it did pullback in a similar fashion to the major US indexes, which all ended the week lower following the Fitch downgrade of the US credit rating from AAA to AA+.
Energy Groups continue to show improvement up the RS rankings, as Crude Oil futures continues to improve in Stage 1 towards the top of the current range, and so could potentially make a new Stage 2 attempt. Oil Equipment & Services ($DJUSOI) is leading the Energy groups with a new 52 week high this week, as it tests the January highs and has moved up to 9th in the RS rankings. Which is a massive +87 RS improvement in the last 3 months.
Broadline Retailers ($DJUSRB) was one of the major RS movers at the upper end of the RS rankings this week, with a +11 RS move into 4th place overall, due largely to AMZN's earnings results, which saw it gap up on Friday and close the week +5.57% higher with a Stage 2 continuation breakout attempt. Although with the market weakness into the close on Friday, it did close lower than it opened.
US Industry Groups by Weakest RS Score
The bottom of the RS rankings remained unchanged this week, with Fixed Line Telecommunications ($DJUSFC), Aluminium ($DJUSAL) and Diversified REITs ($DJUSDT) in the bottom three positions.
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.