US Industry Groups by Highest RS Score
The top three spots of the US Industry Groups Relative Strength Rankings remained unchanged this week, with Internet ($DJUSNS), Semiconductors ($DJUSSC) and Broadline Retailers ($DJUSRB) holding their positions.
The Automobiles ($DJUSAU) group had the strongest percentage move, as well as the strongest RS gain this week, rising +48 RS points to 39th overall in big part due to TSLA's +10.72% rebound from the test of the Stage 2A breakout level, and so is potentially in the Stage 2 backup zone, and so the Chinese EV stocks in the group could come back into focus again, with XPEV also potentially in its Stage 2 backup zone with a strong +17.02% rebound this week at its rising 10 week MA in early Stage 2. RIVN and NIO are also in a similar position in potential early Stage 2, and LI has pulled back into its 10 week MA near to all time highs, and so all could rebound if TSLA follows through.
The Software ($DJUSSW) group was also of note this week, with a further rise of +12 RS points up to 4th place overall in the rankings, with a few stocks in early Stage 2 on the move, such as FSLY, SPLK, VTEX, GRAB.
IGV is a relatively good proxy of the group chart, and had a +3.02% gain on the week from a spring position the prior week, but remains below its 10 week MA currently in the developing base structure.
US Industry Groups by Weakest RS Score
Of note at the bottom of the RS rankings this week was the decline of the Footwear ($DJUSFT) group into 99th overall (5th from bottom) following the Stage 4 breakdown of NKE, which created some related weakness in other stocks in the group such as SKX and DECK for example.
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.