Exercise #2


1.) The sector bullish percent has reversed up to X's at 42%. An evaluation of the trend charts of Stocks A - D show that all are in positive trends with strong relative strength versus the market. Which stock(s) would be stacking the odds in your favor? All three stocks are in the same sector and deemed fundamentally sound. You can only buy one.

Your answer was B. Stock A and Stock D

This answer is incorrect. Stock A's peer relative strength chart remains on a sell signal and so does Stock D's peer relative strength chart. A rising sector is likely to carry these stocks higher too but the stocks with the most potential for outperforming the group as a whole are Stock B and Stock C.

Go back to the question.