US Stocks Industry Groups Relative Strength Rankings
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US Industry Groups by Highest RS Score
Automobiles remains at the top of the Industry Groups Relative Strength (RS) Rankings with Airlines also holding in second place after a strong fourth quarter for the group. But the group with one of the most notable changes this week was Semiconductors – which saw a number of large moves in the smaller cap names especially. Broadening out the group breadth (35%) for the first time since it dropped into the lower range (below 30%) in the early Summer months, and is also evident in the percentage of stocks above their 30 week moving averages data as well, which has expanded to 44.74%. So the Semiconductors breadth is having a breakout attempt with the overall group chart in Stage 4- position (i.e. its in Stage 4, but has moved back above it 50 day MA, so it's improved in the short-term).
However, the majority of the strong moves this week were in the small cap Semiconductors, such AEHR (which is developing in late Stage 1 with earnings approaching), plus it was a thin volume week in the overall market due to the holiday period. So it is simply a minor change of behaviour at the moment, and something to monitor once the institutional traders return to their desks in the coming weeks, as the majority of the large cap stocks in the group (which has 114 stocks currently), have Weak Stage Analysis Technical Attributes (SATA) scores (SATA 3 of 10 or lower).
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.