Weekly Relative Strength Changes
Published: May 9, 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 22 relative strength buy signals compared to 18 last week. On the sell side, there were 7 relative strength sell signals compared to 10 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 22 relative strength buy signals compared to 18 last week. On the sell side, there were 7 relative strength sell signals compared to 10 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
FTR Frontier Communications Corporation Fixed Line Communications 9.780 Buy X Buy X 4
DGII Digi International Inc Communications Technology 12.300 Buy X Sell X 3
ITGR Greatbatch Technologies, Inc. Industrial Goods & Svcs 65.550 Buy X Buy X 5
GHL Greenhill & Co. Financial Services 25.450 Buy X Sell X 4
HZO Marinemax Retail 23.300 Buy X Sell X 4
AVAV Aerovironment, Inc. Industrial Goods & Svcs 60.970 Buy X Buy X 5
GTS Triple-S Management Corporation Insurance 30.560 Buy X Sell X 4
CATM Cardtronics PLC Financial Services 30.290 Buy X Buy X 4
KFRC Kforce.Com Industrial Goods & Svcs 33.100 Buy X Buy X 5
XCRA Xcerra Corp. Semiconductors 13.240 Buy X Buy X 5
MRO Marathon Oil Corporation Oil Companies Major 20.440 Buy X Buy X 5
FOXA Twenty-First Century Fox Inc. Media 37.990 Buy X Buy X 5
OAS Oasis Petroleum Inc. Oil Companies Major 11.540 Buy X Sell X 3
NGVC Natural Grocers by Vitamin Cottage Inc Food and Beverage 9.580 Buy X Buy X 4
SNP China Petroleum and Chemical Corporation (China) ADR Oil Companies Major 98.160 Buy X Buy X 5
ZBRA Zebra Technologies Corp Industrial Goods & Svcs 153.240 Buy X Buy X 5
SSW Seaspan Corp. Industrial Goods & Svcs 8.780 Buy X Buy X 4
CHRS Coherus Biosciences Inc Biotechnology 15.250 Buy X Buy X 5
GWPH GW Pharmaceuticals PLC (United Kingdom) ADR Pharmaceuticals 144.560 Buy X Buy X 5
DNOW NOW Inc. Oil Companies Major 14.270 Buy X Sell X 4
SHAK Shake Shack Inc Cyclical Goods and Services 59.360 Buy X Buy X 5
GKOS Glaukos Corp. Medical Products 35.690 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
CRESY Cresud S.A.C.I.F.y A. (Argentina) ADR Food and Beverage 16.470 Sell O Buy O 1
LCII LCI Industries Construction 89.650 Sell O Sell O 0
PZE Petrobras Energia S.A. (Argentina) ADR Oil Companies Secondary 9.620 Sell O Sell O 1
PPC Pilgrim's Pride Corporation Food and Beverage 21.160 Sell O Buy O 2
ESPR Esperion Therapeutics Inc Biotechnology 40.490 Sell O Sell O 0
ATUS Altice USA, Inc. Class A Media 16.430 Sell O N/A O 0
AMRX Amneal Pharmaceuticals Inc Class A Pharmaceuticals 14.710 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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