Industry Analysis Methodology

Ranking by Technical Strength

Ranking by technical strength is updated daily.

We measure the core technical condition of each stock in the industry. This consists of the stock's current price relative to its 50 day moving average (dMA), the stock's current price relative to its 200dMA, the stock's 50 vs 200 dMA, the stock's price relative to its 52 week high, and the stock's RS Rank. These core technical scores are then averaged across all stocks in the industry to derive an average core technical score for the industry. We then normalize this underlying value and assign an Industry Technical Score from 1 to 100. Each industry is scored independently from another. An industry in which all stocks' prices are above both their 50 dMA and 200 dMA's, the 50 dMA's are above the 200 dMA's, the prices are each within 15% of the 52 week high and RS Ranks all equal 99 will receive the highest possible Industry Score of 100. An industry in which all stocks' prices are below both their 50 and 200 dMA's, the 50 dMA's are below the 200dMA's, the prices are more than 60% off the 52 week high and RS Ranks all equal 1 will receive the lowest possible Industry Score of 1.

In order to assign an Industry Rank, we sort the industries on their underlying average core technical scores from best to worst. We then assign a rank from 1 to 215 (best to worst).

Ranking by Fundamental Strength

Ranking by fundamental strength is updated weekly after the first trading session of the week.

We measure the fundamental strength of each stock in the industry using our CEF metric. These fundamental scores are averaged across all stocks in the industry to derive an average fundamental score for the industry. We then normalize this underlying value and assign an Industry Fundamental Score from 1 to 100. Each industry is scored independently from another.

In order to assign an Industry Fundamental Rank, we sort the industries on their underlying average fundamental scores from best to worst. We then assign a rank from 1 to 215 (best to worst).

Ranking by Combined Strength

The combined results are updated daily using the most recent technical information and the weekly fundamental information.

We measure the combined strength of each stock in the industry using our CANTATA Evaluator (CE) metric. The CE scores are averaged across all stocks in the industry to derive an average CE score for the industry. We then normalize this underlying value and assign an Industry Combined Score from 1 to 100. Each industry is scored independently from another.

In order to assign an Industry Combined (CE) Rank, we sort the industries on their underlying average CE scores from best to worst. We then assign a rank from 1 to 215 (best to worst).

Ranking by Price

The ranking by price is updated daily.

Each day, the unweighted average price of all stocks in the industry is calculated. We are only interested in seeing how the average price of all stocks in the industry has changed over the year, not in comparing one industry to another, so weighting by market capitalization is unnecessary. The price analysis compares the average price of all stocks in an industry to the average price as it was 3 and 6 months ago. The 3 month comparison is given a weight of 0.7 and the 6 month comparison a weight of 0.3. The resulting raw score is then used to rank the industries best to worst from 1 to 215. Because there is no theoretically perfect raw score under this method of scoring, a normalized score is assigned in which the top raw score is assigned a value of 99 and the worst a value of 1. Normalized scores are then assigned to the other industries on the basis of the relationship of their raw score to the best raw score.

Download

To download data, click the 'Download' tab. This allows you to download the data in 'csv' format suitable for import into spreadsheets such as Excel. The Download capability is only available to Platinum Subscribers.

General Comments on Ranking

Because rank is based on sorting the list of industries from best to worst scores, you will notice that the Industry Rank can change dramatically from one week to the next. This is inherent in any ranking system.