SMO Exclusive: Strength Report Group 3 2024-02-16

Brian Degracia

19 Feb 2024 • 4 min read

U.S. stock market lesson… no preconceived notions. Manufacturing = unsexy but 🔹 1-year POWL +255% and 25 stocks >40%, 🔹 14% of its 125 stocks at 5+ year highs w/1-year 41% average returns (+8% to +75%), 🔹 51% of its stocks rated Strongest (highest of 9 strength levels). 2/16/24 Cats and dogs industry review of Aerospace Defense, Chemicals, Drugs, Manufacturing, Wholesale including Strongest-/Weakest-rated Stock Market Organizer stocks and objective strengthening/weakening measurements for each industry.

12 5+ year Manufacturing industry highs: AME, AZZ, BWXT, CSWI, EMR, EPAC, ETN, IR, LECO, NPO, PH, SPXC

Right behind those: CAT, GGG, HAYN, HWM, KAI, TNC

HIGHLIGHTS
🔹 All industries are Strong (4th strongest of 9 levels), Chemicals and Drugs STRENGTHENED this week
🔹 Sub-industries (31): 13% Strengthened, 19% Weakened
🔹 Stocks rated Strongest:Weakest: Aerospace Defense 48%:14% of total, Manufacturing 51%:10%, Wholesale 44%:8%
🔹 Outliers: PCT +19%, MDGL +23%, MEDP +20%, HLI -33%, QDEL -39%, MTW -22%, HFF -17%, WCC -25%
🔹 5-Year Highs/Lows %: Manufacturing 14% of 125 stocks are at 5+ year highs

SO WHAT?
Through tracking strengthening and weakening from the individual stock through overall market levels, what does this tell you?
🔹 The strongest stocks in each industry so you can see by this measurement if there are better options than whatever you may currently own.
🔹 How all stocks in each sub-industry and industry stack up against each other in terms of current strengthening and weakening. These relationships may not continue, but it’s hard to meaningfully discern where you could go if you don’t know where you currently are. This analysis enables you to quickly see the best and worst stocks and ignore the rest.
🔹 Whether sub-industries and industries are currently strengthening – does their action support new entries or is it better to wait?

This cannot guarantee profits. The market is no one’s ATM. But…

It aligns with the concepts that
THE STRONGER YOUR STOCKS, THE GREENER YOUR P&L, and
IT 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.