Weekly Relative Strength Changes
Published: May 2, 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 13 relative strength buy signals compared to 16 last week. On the sell side, there were 10 relative strength sell signals compared to 12 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 13 relative strength buy signals compared to 16 last week. On the sell side, there were 10 relative strength sell signals compared to 12 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
BJRI BJ's Restaurants Inc. Cyclical Goods and Services 56.450 Buy X Sell X 4
FCN FTI Consulting, Inc. Industrial Goods & Svcs 58.820 Buy X Sell X 4
FITB Fifth Third Bancorp Banks 33.360 Buy X Buy X 5
CPG Crescent Point Energy Corp. (Canada) ADR Oil Companies Major 8.710 Buy X Sell X 2
BCOV Brightcove Inc Technology Services 9.800 Buy X Sell X 3
PCMI PCM Inc. Retail 12.250 Buy X Buy X 4
OIS Oil States International, Inc. Oil Drilling, Equipment Svcs 35.400 Buy X Sell X 4
LULU Lululemon Athletica Inc. Retail 99.700 Buy X Buy X 5
TZOO Travelzoo Technology Services 12.450 Buy X Sell X 3
YUM Yum! Brands, Inc. Cyclical Goods and Services 86.640 Buy X Buy X 5
UVE Universal Insurance Holdings, Inc. Insurance 33.100 Buy X Buy X 5
WUBA 58.Com Technology Services 88.630 Buy X Sell X 4
LONE Lonestar Resources US, Inc. Class A Oil Companies Major 5.190 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
CEVA Ceva, Inc. Semiconductors 33.300 Sell O Sell O 0
FORM FormFactor Inc. Semiconductors 11.450 Sell O Sell O 0
HRG HRG Group Inc. Food and Beverage 11.730 Sell O Sell O 0
LEG Leggett & Platt, Incorporated Cyclical Goods and Services 40.380 Sell O Sell O 0
PETS PetMed Express, Inc. Retail 34.300 Sell O Sell O 0
R Ryder System, Inc. Industrial Goods & Svcs 66.850 Sell O Sell O 0
TECD Tech Data Corp Industrial Goods & Svcs 77.320 Sell O Sell O 0
TEN Tenneco Inc Automobiles 46.020 Sell O Sell O 0
XIN Xinyuan Real Estate Company Limited (China) ADR Real Estate Investment & Services 5.070 Sell O Buy O 2
COMM CommScope Holding Company, Inc. Communications Technology 27.590 Sell O Sell O 0

 

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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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