US Stocks Industry Groups Relative Strength Rankings
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US Industry Groups by Highest RS Score
Energy sector groups continue to lead the RS rankings, but they were all negative this week, with Industrial, Financial, Consumer Staples and Health Care sector groups having the strongest RS gains. Banks stocks (weekly chart shown below) had a strong showing in Thursdays move with many from the group showing up in the watchlist scans in developing Stage 1 base structures with signs of stronger volume coming into the group, which rose up 22 RS points this week to 29th overall.
Financial stocks are not the most exciting of groups, but they are an important component for the overall market health, as healthy Financials (i.e. in Stages 1 or 2) are critical for an overall market Stage 2 advance to occur. So it's good to see them outperforming and developing in Stage 1 as the market continues to be weak as Earnings Season kicks off.
US Industry Groups by Weakest RS Score
At the other end of the scale Aluminium remains the bottom of the RS rankings, but Automobiles that I highlighted last week continued its decline due to weakness in TSLA, and fell another -6 RS points to finish the week in second from bottom overall in a Stage 4 decline.
104 Dow Jones 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.