Top Down Trade of the Week (11/01/2025)

Welcome back for another Top Down Trade of the Week.

This is a classic leadership scan.

We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.

This week’s standout is Energy, which surged nine positions to take the second spot in our sector rankings.

Energy is stuck in a long-term range, but bullish momentum is building, laying the groundwork for a potential breakout.

Here’s a look at our overall industry rankings, with Energy Equipment & Services stocks climbing into the top three.

These are the strongest names in energy right now, and it marks a big shift for the sector, as this industry has lagged for years. 

As one of the more risk-on groups, I interpret the action as bullish for the broader energy complex. 

Many are emerging from tight consolidations, suggesting this leadership theme has room to run.

Here are the Top 10 names in the Energy Equipment & Services subsector, ranked by relative strength.

This week’s spotlight stock is Weatherford International $WFRD: