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US Stocks Industry Groups Relative Strength Rankings

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US Industry Groups by Highest RS Score

The Internet ($DJUSNS) group moved up to the top spot in the US Industry Groups Relative Strength Rankings this, but the move was mostly due to continued resilience of the Alphabet stocks in the group (GOOGL, GOOG) which had a slightly positive inside week, and is within a few percent of its 52 week highs still.

A notable strong decliner from last weeks top ten was the Computer Hardware ($DJUSCR) group, which was largely triggered by the selloff in AAPL mid week, on news of new potential restrictions in China for iPhone use in government agencies. Whether it is an overreaction or not. The price action is currently showing early Stage 3 signs for AAPL, with the completion of the Wyckoff Phase A events i.e.  a Buying Climax (BC), an Automatic Reaction (AR) and a Secondary Test (ST). Coinciding with a pullback to the still rising 30 week MA, and hence it would be considered in early Stage 3 at this point. 

Another area of note, is the Oil & Gas groups, which continue to move up the RS rankings, with Oil Equipment & Services ($DJUSOI) up another +7 RS points to 6th place overall, and Exploration & Production ($DJUSOS) up a further +4 RS points to 13th overall. While on a 12 week basis, the Energy sector groups have had the largest RS changes in the market.

US Industry Groups by Weakest RS Score

At the bottom of the RS rankings Aluminium ($DJUSAL) once again was the weakest group, as it once again tested the lows in its Stage 4 decline.

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 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.