SMO Exclusive: U.S. Stock Market Strength Report 2024-07-26 (no new Longs)

Brian Degracia

28 Jul 2024 • 7 min read

7/26/24 Market Report = Financials strong, Banking crushing it, Consumer Sector broadly strengthened. Yes there is broad strength but my objective Market Strength Score changed to negative 7/23/24 and this means no new longs. “Feels” wrong but I act based only on objective measurements, not feelings. Having a “measuring market tide” tool doesn’t mean nailing every top and bottom, it means remaining disciplined always.

This top-down, inside-out (sector, industry, sub-industry), and bottom-up revealing of strength/strengthening and weakness/weakening throughout the stock market offers unique, logical, and actionable insights.

It 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: -42%, no new Longs
12 of 29 industry rankings strengthened, 2 weakened (Section II)
56% of 198 sub-industries strengthened, 19% weakened (Section III)
71% of 2,642 stocks positive, 29% negative, 40% stocks rated Strongest, 9% Weakest (Section IV)

Leading Sector with a 2.8 weighted average ranking:
- Financial Sector/Banking, Financial Services, Insurance, Real Estate

Lagging Industry Grouping with a 4.5 weighted average ranking:
- Industry Group 1/Automotive, Energy, Materials & Construction, Metals & Mining, Transportation

Leading Industry with a 2VStrong ranking:
- Banking

Lagging Industries with a 5Average ranking:
- Computer Hardware, Internet, Automotive, Energy, Transportation, Food/Beverage, Leisure, Chemicals, Wholesale

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