
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 ![]() |