SMO Exclusive: Strength Report Group 1 2024-04-23

Brian Degracia

23 Apr 2024 • 4 min read

U.S. stock market 4/23/24 Industry Group 1 today (Automotive, Energy, Materials/Construction, Metals/Mining, Transportation), after hours TSLA +11% headed “To the moon, Alice!” TSLA earnings report sparks a move and maybe this is the crank handle start this Major Auto Manufacturer needed to get out of its slump. More on this below. In the meantime, what you may not know that could be relevant: 🔹 no ranking changes in this industry group which is the strongest at a 4.3 composite ranking, 🔹 Materials & Construction went from 98% negative stocks last week to 80% positive stocks this week, 🔹 excellent average 41%:13% 1Strongest:9Weakest ratio led by Energy 53%:9%, Materials & Construction 43%:4%, and Metals & Mining 38%:9%.

TSLA EARNINGS

Yesterday I mentioned I’m not a chartist but “TSLA’s chart does not look good to me” and Friday 4/19/24 TSLA’s ID was 95-69-69. (Stock had a 9Weakest ranking and was flat for the week, sub-industry Major Auto Manufacturers had a 6Weak ranking and WEAKENED during the week, industry Automotive had a 6Weak ranking and WEAKENED during the week). Added up to an “ignore at this moment.”

Rating after today’s trading but before TSLA earnings: 95-51-65 =
🔹 stock 9Weakest ranking, was FLAT for the week
🔹 sub-industry Major Auto Manufacturers 5Avg ranking and STRENGTHENED during the week
🔹 industry Automotive 6Weak ranking and was FLAT during the week.

So, this dynamic situation has improved even from Friday. TSLA still wouldn’t be of interest at this moment – only stocks rated 1Strongest - but perhaps this ranking will come in time.

There are others already there.

TODAY’S REPORT TAKEAWAYS

SUMMARY: FLAT FOR THE WEEK, SLIGHT STRENGTHENING BIAS AS MATERIALS & CONSTRUCTION REBOUNDS

🔹 Industry Strength Level Changes: None

🔹 Industries

Strongest Materials & Construction (3Stronger)
Weakest Automotive (6Weak)

🔹 Sub-industries (32)

25% Strengthened, 16% Weakened
Strongest: Aluminum, Copper (1Strongest)
Weakest: Lumber, Air Delivery/Freight (7Weaker)
@ 5 Year+ Highs/Lows: No outliers

🔹 Stocks
Positive:Negative: Average 67%/33%; Energy 74%, Materials/Construction 80% positive
Stocks, Strongest:Weakest: Average 41%/13%; Energy 53%:9%, Materials & Construction 43%:4%, Metals/Mining 38%:9%
Outlier Stocks: POET +42%, VTNR +71%, LICY -20%, LAC -28%, UAL +30%, VLRS +20%