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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 C. Stock B and Stock C
Great! 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 since their peer relative
strength charts are on sell signals.
Go to the nest question.
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