SMO Exclusive: Strength Report Group 1 2024-02-27

Brian Degracia

27 Feb 2024 • 4 min read

U.S. stock market 2/27/24, Materials & Construction is killing it (36% of its 83 stocks are at 5+ year highs), Energy strengthened again, and Gold is still lagging (rated Very Weak, 8th strongest of 9 levels) as NEM is at 5-year lows… if you aren’t explicitly looking everywhere for strength, how will you know where and when the next pocket of strength is emerging? Today: analysis of Group 1 industries (Automotive, Energy, Materials & Construction, Metals & Mining, and Transportation).

Detail below and attached including Strongest-/Weakest-rated stocks and objective strengthening and weakening measurements for each of these industries.

HIGHLIGHTS
🔹 Strongest Industry: Materials & Construction (Stronger, 3rd strongest of 9 levels), Energy STRENGTHENED this week
🔹 Weakest Industry: Metals & Mining (Weak, 6th strongest)
🔹 % Positive Stocks: Matls/Const 83%, Energy 73%
🔹 Sub-industries (32): 9% Strengthened, 16% Weakened; GCs = Strongest, Silver Weakest
🔹 Stocks rated Strongest:Weakest: Matls/Const 71%:4% of total, Energy 36%:16%, Transportation 48%:17%
🔹 Outliers: LI +45%, FOXF -23%, STRL +29%, AMR +20%
🔹 5-Year Highs/Lows %: Matls/Const 36% of 83 stocks are at 5+ year highs

SO WHAT?
Through tracking strengthening/weakening from the individual stock through overall market levels, you know:
🔹 The strongest stocks in each industry. Helpful for “the stronger your stocks, the greener your P&L” believers. Ditch portfolio dogs until they begin strengthening.
🔹 How all stocks in each sub-industry/industry compare in current strengthening and weakening. No guarantee the relationships will continue but it’s hard to game plan where they could go if you don’t know where they are now.
🔹 Whether sub-industries and industries are currently strengthening. “The trend is your friend” applies to sub-industries and industries too.

It really doesn’t have to be so complicated.

This report may particularly be of interest if the following 5 concepts resonate with you:

The stronger your stocks, the greener your P&L.
The journey to 100%+ returns begins with 10% returns.
The journey to a multi-month rally begins with one up week.
Most stocks do what the market does. (While the market can only do what its underlying stocks, sub-industries, and industries do.)
80/20: not all information is created equal. (Press buttons, not balloons.)

Following are galleries with page-by-page views of this report.