Sector RS Rank Nov 2: Homebuilders Lead, Oil & Gas Fall
Contents
💡 Today’s US market in three lines
① Today’s three stocks: Mohawk Industries · Masco · Royal Caribbean
② What rose today: homebuilders, medical devices, retail
③ What pulled back: oil and gas, cybersecurity, oil services
Today’s Sector Relative Strength (RS)
- WTI crude fell -7.55% to $96.26 on Monday as hopes grew for US-Iran talks. The oil fund (USO) lost -7.08%. Cheaper oil helped push the 10-year Treasury yield down to 4.89% from 4.93%. The Dow rose +0.41% to 51,983.98. The S&P 500 slipped -0.51% to 7,541.40, and the Nasdaq fell -1.07% to 25,164.32. Microsoft lost -2.83% and Palantir -3.13%, so tech kept dragging. Exxon Mobil fell -4.05% and Chevron -3.29%. The VIX rose to 21.15 from 19.42.
- Of the 129 ETFs in our universe, 66 closed higher and 63 fell. Consumer discretionary (XLY) led the 11 sectors at +2.41%. Energy (XLE) was last at -3.96%. Eight sectors rose and three fell. The equal-weight S&P 500 (RSP) gained +0.76%, so the typical stock did better than the index.
Today’s Leading Sectors TOP 5
| ETF | 1-Day | RS Rank 1M | Short-Term | Mid-Term | Long-Term |
|---|---|---|---|---|---|
| Consumer Staples Select Sector SPDR (XLP) | +1.58% | 99 | 🔺 | 🔺 | 🔺 |
| Utilities Select Sector SPDR (XLU) | +0.55% | 99 | 🔺 | 🔺 | 🔽 |
| SPDR S&P Retail (XRT) | +2.05% | 98 | 🔺 | 🔺 | 🔺 |
| iShares U.S. Insurance (IAK) | +1.48% | 97 | 🔺 | 🔺 | 🔺 |
| iShares U.S. Home Construction (ITB) | +4.56% | 96 | 🔺 | 🔺 | 🔺 |
- The table turned over almost completely. Last report’s top five held four energy funds. Oil and gas exploration (IEO) slipped to 94, and energy (XLE) to 90. Staples, retail, insurance, and homebuilders took their places. Utilities (XLU) is the only holdover.
Why They’re Strong — Sector Issues
· Home construction (ITB) — Up +4.56%, sheet RS rank 96. Cavco rose +7.09%, Meritage Homes +7.04%, and Mohawk Industries +6.58%. Lower yields after the oil drop gave builders a lift.
· Medical devices (IHI) — Up +3.52%, sheet RS rank 93. IDEXX Laboratories jumped +21.85%, the biggest move in the fund. Boston Scientific added +5.57% and Baxter +5.30%.
· Retail (XRT) — Up +2.05%, sheet RS rank 98. Upbound rose +10.34%, The RealReal +8.86%, and Academy Sports +4.46%. Walmart gained +3.38%. Retail now sits near the top of the sheet.
· Airlines (JETS) — Up +4.16%, sheet RS rank 55. Cheaper fuel is the plain reason. JetBlue rose +11.23% and United +4.80%. The fund is still below its 1-quarter and 1-year averages.
What Changed From Yesterday
- Homebuilders (XHB) posted the biggest one-day rank gain, 72 to 90. Home construction (ITB) climbed from 81 to 98, and airlines (JETS) from 43 to 58.
- Cybersecurity (BUG) lost 27 points, 82 to 55, and nearly all of it was Monday’s price drop. Oil services (OIH) fell from 88 to 64, and oil and gas explorers (XOP) from 95 to 74. Friday’s report said oil and gas leadership was still holding. One session later, that call broke.
1-Month RS Trend
- Home construction (ITB) rose from 31 to 98 over the window. Airlines (JETS) climbed from 1 to 58, and solar (TAN) from 7 to 46. Oil (USO) went from 52 to 83 but has dropped well off its peak of 100. Cybersecurity (BUG) slid from 91 to 55.
RS Breakdown Warnings
- First Trust cybersecurity (CIBR) fell from 92 to 36, the deepest drop. Cloud, software, and two more cyber funds joined it. Oil and gas explorers (XOP), refiners (CRAK), and IEO are on the list too. All nine match the sheet’s direction over the same five sessions.
RS Rebound Signals
- Airlines (JETS) jumped from 29 to 58, the strongest rebound. Aerospace and defense (XAR) and European defense (EUAD) also qualified. Three other funds were dropped, two because Monday’s price moved the other way and one because the sheet disagreed.
Today’s Top Rising Sectors TOP 5 (by 1-day %)
| ETF | 1-Day | RS Rank 1M | Short-Term | Mid-Term | Long-Term |
|---|---|---|---|---|---|
| Invesco Solar (TAN) | +4.65% | 53 | 🔽 | 🔽 | 🔽 |
| iShares U.S. Home Construction (ITB) | +4.56% | 96 | 🔺 | 🔺 | 🔺 |
| U.S. Global Jets (JETS) | +4.16% | 55 | 🔺 | 🔽 | 🔽 |
| SPDR S&P Homebuilders (XHB) | +3.58% | 87 | 🔺 | 🔺 | 🔽 |
| iShares U.S. Medical Devices (IHI) | +3.52% | 93 | 🔺 | 🔺 | 🔺 |
Why They Rose
- Solar topped the list, but it is below all three averages. Home construction and medical devices are the stronger names here. Both sit above their 1-month, 1-quarter, and 1-year averages. On the other side, meme stocks (MEME) -7.22%, oil (USO) -7.08%, cybersecurity (BUG) -5.87%, and oil services (OIH) -5.48% led the decliners. Okta fell -11.22% inside the cyber group.
Leading Sectors: Homebuilders, Medical Devices, Retail
- ① Home construction ranks 96 and climbed 67 points over the window. Monday’s yield drop added fuel.
- ② Medical devices rank 93 and are above every average. IDEXX gave the group a one-day push.
- ③ Retail ranks 98. The gain was broad, from Walmart to small chains.
- ④ The last report covered the October 30 close. Its three picks from that close to Monday’s: Regeneron +3.60%, Eli Lilly -0.46%, and Cheniere Energy -5.65%, against -0.51% for the S&P 500. Regeneron beat the market, and Lilly edged past it. Cheniere closed at $311.67, below the $318.94 level the report flagged. Recorded as is.
Today’s Three Stocks — Mohawk Industries · Masco · Royal Caribbean Stock Forecast
- Sixty-three stocks passed the four-part filter. These three fit the day’s leaders.
Mohawk Industries (MHK) — Flooring Maker Stock Forecast
| Stock | RS 1D | RS 5D | RS 1M | 1M Return | Held By |
|---|---|---|---|---|---|
| Mohawk Industries (MHK) | 98 | 98 | 90 | +17.5% | iShares U.S. Home Construction 1.5% |
- Closed at $148.58, +6.58%, a one-year closing high. Mohawk makes carpet, tile, and laminate flooring. It reported on October 29 and has gained in both sessions since. The Mohawk Industries stock forecast leans on housing demand. For the third quarter, net sales rose about +1% to $2.8 billion. Diluted EPS was $2.72. The board approved a new buyback of up to $500 million.
Masco (MAS) — Plumbing and Paint Stock Forecast
| Stock | RS 1D | RS 5D | RS 1M | 1M Return | Held By |
|---|---|---|---|---|---|
| Masco (MAS) | 88 | 95 | 95 | +22.2% | SPDR S&P Homebuilders 3.7% · iShares U.S. Home Construction 3.4% |
- Closed at $83.51, +3.56%, a one-year closing high. Masco owns Delta faucets and Behr paint. It reported on October 28. The Masco stock forecast rests on margins more than sales. Net sales rose +3% to $1.966 billion. Operating profit rose +12% to $338 million, and EPS rose +30% to $1.17. Masco raised its adjusted EPS guidance to $4.65 to $4.75.
Royal Caribbean (RCL) — Cruise Line Stock Forecast
| Stock | RS 1D | RS 5D | RS 1M | 1M Return | Held By |
|---|---|---|---|---|---|
| Royal Caribbean (RCL) | 93 | 97 | 86 | +15.6% | Consumer Discretionary Select Sector SPDR 2.0% |
- Closed at $321.07, +4.52%. Fuel is a large cost for cruise lines, so Monday’s oil drop helped. The company reported on October 27. The Royal Caribbean stock forecast now has cheaper fuel on its side. Revenue rose +9% to about $5.6 billion. GAAP EPS was $6.45. Full-year adjusted EPS guidance moved up to $17.85 to $17.95, even with higher fuel costs at the time.
Mohawk Industries · Masco · Royal Caribbean Stock Forecast Checkpoints
· Mohawk Industries stock forecast — The stock cleared its August 14 high close of $140.10. Watch whether it holds above $140.10. The 20-day average is far lower at $124.20.
· Masco stock forecast — The prior one-year high close was $82.77 on July 2. Watch whether the stock stays above $82.77 after a +9.8% climb from its report-day close.
· Royal Caribbean stock forecast — The February 9 high close of $348.03 is still above. Watch whether it holds above $295.92, the report-day close, if oil bounces.
What to Watch on Next Week’s Calendar
- 🔴 US midterm elections, Tuesday, November 3 · Possible US decision on renewed Iran strikes after the vote
- Oil fell -7.55% on hopes for US-Iran talks. Any sign of renewed strikes after the election could reverse Monday’s move in energy and airlines.
- AMD results, Tuesday, November 3, 4:00 p.m. ET · Qualcomm and Arm results, Wednesday, November 4, 4:00 p.m. ET
- The Nasdaq fell again while the Dow rose. Chip results will show whether the tech slide keeps going.
- Marathon Petroleum results, Tuesday, November 3, 8:00 a.m. ET · ConocoPhillips results, Thursday, November 5, 8:00 a.m. ET · Devon Energy results, Thursday, November 5, 4:00 p.m. ET
- Oil and gas explorers (XOP) dropped from 95 to 74 in a day. Producer results land right after that break.
- 🔴 October jobs report, Friday, November 6, 8:30 a.m. ET · ISM services index, Wednesday, November 4, 10:00 a.m. ET
- Homebuilders rose on lower yields. A hot jobs number could push the 10-year back above 4.89%.
