Weekly Relative Strength Changes
Published: April 25, 2018
This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.
In the Optionable Universe, this week we saw 12 relative strength buy signals compared to 15 last week. On the sell side, there were 12 relative strength sell signals compared to 3 last week.

 

Relative Strength Changes for the Week

Relative strength is a measure of how a stock is performing when compared to something else, in this case the S&P 500 Equal Weighted Index (SPXEWI). Each day the stock's closing price is divided by that of the SPXEWI, the resulting numbers decimal is moved two places and then plotted on a Point & Figure chart. Whenever the relative strength chart shows a double top buy signal (e.g. RS Buy or Positive Relative Strength), it suggests the stock is likely to outperform the market for the foreseeable future. Conversely, whenever the relative strength chart gives a double bottom sell signal (e.g. RS Sell or Negative Relative Strength) it suggests the stock will under-perform the market. Relative strength signals tend to last roughly 18 to 24 months on average. Consequently, changes from buy signals to sell signals (and vice versa) are important to be aware of as they are longer-term implications of a stock's likely performance versus the indices. Using the Point & Figure chart along with the relative strength chart will allow you to better ascertain risk-reward and other trade management tools, but we always want to over-weight our portfolios toward those stocks that are on RS buy signals, giving us the best chance of outperforming the broader market.

In the Optionable Universe, this week we saw 12 relative strength buy signals compared to 15 last week. On the sell side, there were 12 relative strength sell signals compared to 3 last week.

Stocks Moving to an RS Buy Signal

Symbol Company Sector Price RS vs Market Signal RS vs Market Column RS vs Peer Signal RS vs Peer Column Trend
BGFV Big 5 Sporting Goods Corp. Retail 9.000 Buy X Sell X 3
PDCE PDC Energy Inc Oil Drilling, Equipment Svcs 54.730 Buy X Sell X 4
PFSW Pfsweb Inc. Industrial Goods & Svcs 9.560 Buy X Buy X 4
MMYT Makemytrip Limited Cyclical Goods and Services 34.750 Buy X Sell X 4
KORS Michael Kors Holdings Limited Cyclical Goods and Services 67.690 Buy X Buy X 5
MTDR Matador Resources Company Oil Companies Secondary 33.300 Buy X Buy X 5
RELL Richardson Electronics LTD Industrial Goods & Svcs 9.170 Buy X Sell X 3
RIG Transocean Ltd. Oil Drilling, Equipment Svcs 12.450 Buy X Buy X 4
ANDV Andeavor Oil Companies Secondary 118.920 Buy X Buy X 4
SPWR Sunpower Corporation Industrial Goods & Svcs 8.930 Buy X Sell X 3
TCS The Container Store Group, Inc. Retail 6.130 Buy X Sell X 3
REI Ring Energy, Inc. Oil Companies Major 15.980 Buy X Buy X 5

Stocks Moving to a RS Sell Signal

Symbol Company Sector Price RS vs Market Signal RS vs Market Column RS vs Peer Signal RS vs Peer Column Trend
JNP Juniper Pharmaceuticals Inc. Pharmaceuticals 8.000 Sell O Buy O 2
HUBB Hubbell Inc Industrial Goods & Svcs 109.350 Sell O Buy O 1
CLVS Clovis Oncology Inc Biotechnology 46.260 Sell O Sell O 0
LAMR Lamar Advertising Company Media 62.510 Sell O Buy O 1
NTES Netease.com Inc. (China) ADR Technology Services 254.100 Sell O Sell O 0
MWA Mueller Water Products, Inc. Industrial Goods & Svcs 10.010 Sell O Sell O 1
PZN Pzena Investment Management, Inc. Financial Services 9.140 Sell O Sell O 0
SNBR Sleep Number Corp. Cyclical Goods and Services 29.240 Sell O Buy O 1
VNET 21Vianet Group Inc Technology Services 5.770 Sell O Sell O 0
TSRO TESARO Inc. Pharmaceuticals 53.020 Sell O Buy O 1
CTRE CareTrust REIT Inc Equity REITs 12.880 Sell O Buy O 2
PM.TR Philip Morris International Inc. TR Noncyclical Goods and Svcs 84.213 Sell O Buy O 1

 

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DISCLOSURE

This report is for Internal Use Only and not for distribution to the public. While we make every effort to be free of errors in this report, it contains data obtained from other sources. We believe these sources to be reliable, but we cannot guarantee their accuracy. Investors who use options should read the Options Disclosure Document before making any particular investment decision. Officers or employees of this firm may now or in the future have a position in the stocks mentioned in this report. Dorsey, Wright is a Registered Investment Advisor with the U.S. Securities & Exchange Commission. Copies of Form ADV Part II are available upon request.
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