S&P600 (Small Cap) Detail 2022-10-22 - strongest and weakest stocks by sub-industry

Brian Degracia

22 Oct 2022 • 1 min read

Strongest and weakest within various sub-industries - for new positions, everything else is noise.

Why do you care about something like this?

If you don't have dry powder, you don't. You'll want to just manage your current positions.

If you do have dry powder, you'll want to know which are the strongest and weakest stocks in any given sub-industry. Why? Given the backdrop of a weak market since the beginning of 2022:

The currently-strongest stocks will be the best candidates to lead the market out of its doldrums. Just because you may not know why strong stocks are strong - always assume you, like me, are the last to know anything - does not mean there isn't some underlying reason(s) explaining the strength. Why ask why?
The weakest ones are the ones most prone to huge pops. Critical reminder: do not marry a stock you should just date.

As a healthy body turns sick one cell at a time and a sick body turns healthy one cell at a time, a strong market turns weak one stock at a time and a weak market turns strong one stock at a time.

Not paying attention to sub-industry and industry strength? You should. Though to varying degrees, stocks typically do what their sub-industries do and sub-industries typically do what their industries do.

An easy example: individual hotel stocks are subject to the same factors that impact hotel stocks in general (the sub-industry) which in turn impact real estate (the industry).

Do you know how to take advantage of the following fact? Stocks typically do what the market does, but the market can only do what its underlying stocks (and industries and sub-industries) do.

Below is a downloadable report with more stock-by-stock detail sorted by sub-industry.

SMO Indexes SP600 Detail 2022 10 21

S&P600 detail strongest and weakest stocks by sub-industry

SMO Indexes SP600 Detail 2022-10-21.pdf

1 MB

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