Exercise #2


2.) The sector bullish percent chart is in O's and the sector just fell to 26%. Which of the following stocks listed below is the most likely to have been the worst performer in the sector.

Your answer was D. Stock D

Correct! Stock D's peer relative strength chart is in O's and on a sell signal. This would suggest that it would be one of the worst performing stocks within the sector. Stock's B and C both have their peer relative strength charts on a buy signal and X's indicating it is likely to have held up well, at least outperforming the sector, and when the group reverses up to X's from such a low level, this will be one stock to consider for purchase. Stock A's peer relative strength chart is also interesting. It has reversed up and is close to giving a buy signal. This would be the first buy signal in a number of years and could be an interesting turn around situation within the sector.

Go to next exercise.