Top Down Trade of the Week

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.

Today’s standout is Industrials, which surged four spots in our sector rankings this week.

Industrials just broke out to fresh all-time highs at the large-, mid-, and small-cap level, confirming broad-based strength throughout the sector.

This is our overall industry rankings, showing Machinery stocks climbing 35 spots to break into the top 20.

When it comes to gauging the health of the economy, Machinery is among the most important groups to watch.

These companies sit at the heart of industrial activity, supplying the equipment used in manufacturing, construction, and infrastructure projects.

It's difficult to make a bearish case when economically sensitive stocks like these are breaking out.

Here are the top-performing names in the Machinery industry, ranked by relative strength.