
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 ![]() |