US Stocks Industry Groups Relative Strength Rankings
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US Industry Groups by Highest RS Score
Automobiles leads for another week as TSLA breaks out to new all-time highs
Homebuilding is the area that I wanted to to highlight this week however, as multiple stocks in the group are currently making new Stage 4 breakdown attempts or have broken down in the last few weeks. For example: DHI, LEN, PHM, MTH, KBH, TPH, GRBK, CCS, LGIH, HOV
Homebuilding Group ETFs XHB – Stage 2B-, ITB – Stage 3
The overall group chart is in a similar position, but it is only just breaking below its still slightly rising 30 week MA and making new quarterly lows. So it is on the borderline of Stage 3 and Stage 4 as a group, and thus while many individual stocks are attempting to breakdown, as a group it's not a clear move yet into early Stage 4. But any follow through to the downside next week, and it would be.
From a breadth perspective, the Homebuilding Stage Analysis Technical Attributes (SATA) has fallen to just 8.7% of stocks on a SATA score of 6 or higher (i.e. only 8.7% are technically healthy) from the recent high of 95.65% in mid October. And the percentage of stocks above their 30 week moving averages has dropped to just 20.83% currently from 100% in mid October.
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.