Welcome back for another Top Down Trade of the Week.
This week, we are taking our usual approach and flipping it.
While we typically focus on leadership and strength, the recent, pervasive weakness that has crept into the market dictates a change in strategy.
We are now concentrating on the bottom of the leaderboards to find the areas most susceptible to continued selling pressure, giving us the best shorting opportunities.
We start by identifying the weakest sectors, then drill into the subgroups, pick one, and then analyze the most vulnerable names within it.
This week we are highlighting the weakness in Materials, as it sits at the bottom of our sector rankings in 10th place.
Materials have been one of the market's primary sources of pain, sitting firmly at the bottom of our sector strength rankings.
While other sectors have attempted to consolidate, Materials continues to face aggressive selling pressure—and that overwhelming relative weakness suggests these stocks could continue to lead the market lower.
Here’s a peek at the bottom of our overall industry rankings, which shows Metals & Mining moving all the way down another 2 spots to sit 70th in our Industry Rankings.
Here are the Bottom 10 names in the Metals & Mining subsector, ranked by the weakest relative performance.
