In the Optionable Universe, this week we saw 19 relative strength buy signals compared to 19 last week. On the sell side, there were 21 relative strength sell signals compared to 17 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 19 relative strength buy signals compared to 19 last week. On the sell side, there were 21 relative strength sell signals compared to 17 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 | Tech Attrib |
|---|---|---|---|---|---|---|---|---|
| AEIS | Advanced Energy Industries | Industrial Goods & Svcs | 70.020 | Buy | X | Buy | X | 5  |
| AMAT | Applied Materials, Inc. | Semiconductors | 62.540 | Buy | X | Buy | X | 5 |
| CRH | CRH plc (Ireland) ADR | Construction | 37.160 | Buy | X | Sell | X | 4 |
| HRI | Herc Holdings Inc | Noncyclical Goods and Svcs | 32.880 | Buy | X | Sell | X | 4 |
| FQVLF | First Quantum Minerals Ltd. | Basic Resources | 10.210 | Buy | X | Buy | X | 5 |
| FBHS | Fortune Brands Home & Security Inc. | Construction | 66.710 | Buy | X | Sell | X | 4 |
| PRCP | Perceptron Inc | Industrial Goods & Svcs | 6.500 | Buy | X | Buy | X | 5 |
| LUNMF | Lundin Mining Corporation | Basic Resources | 6.082 | Buy | X | Buy | X | 5 |
| JKS | JinkoSolar Holding Company Limited | Industrial Goods & Svcs | 20.900 | Buy | X | Buy | X | 5 |
| SCCO | Southern Copper Corporation | Basic Resources | 42.470 | Buy | X | Buy | X | 5 |
| SPWR | Sunpower Corporation | Industrial Goods & Svcs | 9.865 | Buy | X | Buy | X | 5 |
| XENT | Intersect ENT Inc. | Medical Products | 18.130 | Buy | X | Buy | X | 5 |
| TDOC | Teladoc Health Inc. | Healthcare Providers | 209.220 | Buy | X | Buy | X | 5 |
| TPIC | TPI Composites Inc | Industrial Goods & Svcs | 25.780 | Buy | X | Buy | X | 5 |
| NEW | Puxin Ltd. Sponsored ADR | Retail | 8.970 | Buy | X | Sell | X | 3 |
| UPWK | Upwork, Inc. | Technology Services | 13.870 | Buy | X | Sell | X | 4 |
| AEIS.TR | Advanced Energy Industries TR | Industrial Goods & Svcs | 70.020 | Buy | X | Buy | X | 5 |
| SPWR.TR | Sunpower Corporation TR | Industrial Goods & Svcs | 9.865 | Buy | X | Buy | X | 5 |
| FOUR | Shift4 Payments, Inc. Class A | Industrial Goods & Svcs | 37.760 | 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 | Tech Attrib |
|---|---|---|---|---|---|---|---|---|
| ABCB | Abc Bancorp | Banks | 21.010 | Sell | O | Buy | O | 1  |
| ADS | Alliance Data Systems Corporation | Industrial Goods & Svcs | 40.530 | Sell | O | Sell | O | 0 |
| DENN | Denny's Corporation | Cyclical Goods and Services | 8.110 | Sell | O | Sell | O | 0 |
| DVN | Devon Energy Corporation | Oil Companies Secondary | 10.430 | Sell | O | Sell | O | 1 |
| FBNC | First Bancorp North Carolina | Banks | 21.920 | Sell | O | Buy | O | 1 |
| GBCI | Glacier Bancorp Inc | Banks | 32.910 | Sell | O | Buy | O | 2 |
| DIN | DineEquity, Inc. | Cyclical Goods and Services | 35.130 | Sell | O | Buy | O | 1 |
| JAKK | Jakks Pacific | Cyclical Goods and Services | 6.330 | Sell | O | Sell | O | 0 |
| RRGB | Red Robin Gourmet Burgers | Cyclical Goods and Services | 7.480 | Sell | O | Sell | O | 0 |
| TOWN | Towne Bank | Banks | 17.700 | Sell | O | Buy | O | 1 |
| TSN | Tyson Foods, Inc. | Food and Beverage | 58.810 | Sell | O | Buy | O | 1 |
| VHC | Virnetx Holding Corporation | Software | 5.520 | Sell | O | Sell | O | 1 |
| FNHC | FedNat Holding Co | Insurance | 10.630 | Sell | O | Buy | O | 1 |
| EPZM | Epizyme | Biotechnology | 14.790 | Sell | O | Buy | O | 1 |
| ARDX | ARDELYX, INC. | Biotechnology | 6.390 | Sell | O | Sell | O | 1 |
| NLTX | Neoleukin Therapeutics Inc. | Pharmaceuticals | 11.120 | Sell | O | Sell | O | 0 |
| GWB | Great Western Bancorp Inc | Banks | 12.870 | Sell | O | Sell | O | 0 |
| VERI | Veritone Inc | Technology Services | 11.420 | Sell | O | Buy | O | 2 |
| CHX | ChampionX Corp. | Industrial Goods & Svcs | 8.850 | Sell | O | Buy | O | 1 |
| ADS.TR | Alliance Data Systems Corporation TR | Industrial Goods & Svcs | 41.439 | Sell | O | Sell | O | 0 |
| UHT.TR | Universal Health RLTY Inc T TR | Equity REITs | 69.129 | Sell | O | Buy | O | 1 |
