SMO Exclusive: U.S. Stock Market Strength Report 2024-07-12 (no new Shorts)

U.S. stock market as of/for the week ending 7/12/24 – missing breadth? Nope. Powerful broad advance. No new shorts, by my count still room to run. Guaranteed? Never. 🔹 Financial Sector crushed it, +1.5 to 3.3 rating (scale 9 worst to 1 best), 🔹 strongest industries at 3Stronger = Banking, Real Estate, Materials & Construction (Homebuilders), and Utilities, 🔹 weakest industry at 6Weak is Food/Beverage. More:

🔹 79% of 198 sub-industries strengthened, 3% weakened
🔹 86% positive stocks this week (Banking and Utilities 98%, Manufacturing 97%, Real Estate 96%, Automotive 95%)
🔹 40% of stocks are rated 1Strongest
🔹 >4 in 10 stocks strengthened while in strengthening sub-industries and industries
🔹 153 (6%) of stocks at 5-year highs currently, 69 (3%) two weeks ago; Financial 52/3 (8%/0%) now vs. 17/5 (3%/1%) two weeks ago

Additional insights are in the attached report – unique and not available elsewhere because I created this analysis from scratch. It uses conventional tools in unconventional ways to diversify your market, sector, industry, sub-industry, and individual stock perspectives.

Why do you care?

This report may resonate with you if you subscribe to the following:

• The stock market does not have to be so complicated.
• “What” matters, not “why.”
• Market conditions matter.
• The 100%+ rally begins with a 10% rally.
• The multi-month rally begins with one up week. (Also applies to declines.)
• The stronger your stocks, the greener your P&L.

Current stats

• Market Strength Score: +37%, no new Shorts
• 18 of 29 industry rankings strengthened, 0 weakened/Section II
• 79% of 198 sub-industries strengthened, 3% weakened/Section III
• 86% of 2,644 stocks positive, 13% negative, 40% stocks rated Strongest, 13% Weakest/Section IV

Leading Sector 3.3 wtd avg ranking:

• Financial (Banking, Financial Services, Insurance, Real Estate)

Lagging Sector 5.0 wtd avg ranking:

• Consumer (Consumer Durables, Consumer Non-Durables, Food & Beverage, Retail, Specialty Retail)

Leading Sub-industries (minimum 3 stocks) with a 1Strongest ranking:

• Banking – Foreign Regional Banks
• Computer Hardware – Data Storage Devices
• Computer Software & Services – Security Software & Services
• Materials & Construction – Residential Construction
• Consumer Durables – Business Equipment
• Health Services – Long-Term Care Facilities
• Leisure – General Entertainment

Lagging Sub-industries (minimum 3 stocks) with a 9Weakest ranking:

• Wholesale - Auto Parts
• Wholesale - Medical Equipment

More in the market, sector, industry, sub-industry, and stock analysis below.

I. MARKET Prologue Critical Concepts/Market Strength Score

IIA. INDUSTRIES 10-Week Week-by-Week Strengthening

IIB. INDUSTRIES % Positive/Negative Stocks

IIC. INDUSTRIES % Strongest/Weakest Stocks

IIIA. SUB-INDUSTRIES 1-Week Strength Summary

IIIB. SUB-INDUSTRIES 10-Week Strengthening/Weakening

IVA. STOCKS Outlier Sorts

IVB. STOCKS Multi-Year Highs/Lows by Sector/Grouping

IV. EXHIBITS System Foundations