In the Optionable Universe, this week we saw 18 relative strength buy signals compared to 26 last week. On the sell side, there were 25 relative strength sell signals compared to 29 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 18 relative strength buy signals compared to 26 last week. On the sell side, there were 25 relative strength sell signals compared to 29 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 |
|---|---|---|---|---|---|---|---|---|
| BJRI | BJ's Restaurants Inc. | Cyclical Goods and Services | 32.810 | Buy | X | Buy | X | 5  |
| CNTY | Century Casinos, Inc. | Cyclical Goods and Services | 6.780 | Buy | X | Sell | X | 4 |
| DY | Dycom Industries Inc | Construction | 63.960 | Buy | X | Sell | X | 4 |
| HIBB | Hibbett Sports, Inc. | Retail | 34.150 | Buy | X | Buy | X | 5 |
| BKU | Bankunited Inc. | Banks | 23.550 | Buy | X | Sell | X | 4 |
| IMAX | Imax Corporation | Cyclical Goods and Services | 15.040 | Buy | X | Sell | X | 4 |
| MCRI | Monarch Casino & Resort, Inc. | Cyclical Goods and Services | 47.770 | Buy | X | Buy | X | 4 |
| OC | Owens Corning Inc. | Construction | 69.520 | Buy | X | Sell | X | 3 |
| OESX | Orion Energy Systems, Inc. | Industrial Goods & Svcs | 7.010 | Buy | X | Buy | X | 5 |
| SCVL | Shoe Carnival Inc | Retail | 35.980 | Buy | X | Sell | X | 4 |
| PFGC | Performance Food Group Co Formerly | Noncyclical Goods and Svcs | 36.540 | Buy | X | Buy | X | 5 |
| AIMT | Aimmune Therapeutics Inc | Pharmaceuticals | 34.190 | Buy | X | Sell | X | 4 |
| DLTH | Duluth Holdings Inc | Retail | 10.220 | Buy | X | Sell | X | 3 |
| TLND | Talend S.A. | Software | 45.360 | Buy | X | Sell | X | 4 |
| TENB | Tenable Holdings, Inc. | Software | 39.910 | Buy | X | Sell | X | 4 |
| PLAN | Anaplan, Inc. | Technology Services | 62.490 | Buy | X | Sell | X | 4 |
| DKS.TR | Dick's Sporting Goods, Inc. TR | Retail | 58.861 | Buy | X | Buy | X | 5 |
| LI | Li Auto, Inc. Sponsored ADR Class A | Automobiles | 18.290 | Buy | O | Buy | O | 3  |
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 |
|---|---|---|---|---|---|---|---|---|
| APEX | Apex Global Brands Inc | Cyclical Goods and Services | 5.900 | Sell | O | Sell | O | 0 |
| CWT | California Water Service Co | Water Utilities | 44.860 | Sell | O | Buy | O | 1 |
| DVAX | Dynavax Technologies Corporation | Biotechnology | 5.570 | Sell | O | Sell | O | 0 |
| FLR | Fluor Corporation | Construction | 9.280 | Sell | O | Sell | O | 0 |
| GABC | German American Bancorp | Banks | 28.180 | Sell | O | Buy | O | 3 |
| BEAT | BioTelemetry, Inc. | Medical Products | 39.750 | Sell | O | Buy | O | 1 |
| OPI | Office Properties Income Trust | Equity REITs | 23.500 | Sell | O | Sell | O | 0 |
| IMKTA | Ingles Market Inc | Noncyclical Goods and Svcs | 39.960 | Sell | O | Buy | O | 2 |
| JRJC | China Finance Online Co. Limited (China) ADR | Technology Services | 8.070 | Sell | O | Buy | O | 1 |
| LMNX | Luminex Corporation | Biotechnology | 26.210 | Sell | O | Sell | O | 1 |
| PLT | Plantronics, Inc. | Communications Technology | 12.000 | Sell | O | Sell | O | 0 |
| MNOV | Medicinova Inc. | Pharmaceuticals | 5.370 | Sell | O | Buy | O | 2 |
| NGVC | Natural Grocers by Vitamin Cottage Inc | Food and Beverage | 11.590 | Sell | O | Sell | O | 0 |
| SWM | Schweitzer Mauduit Intl Inc | Basic Resources | 29.960 | Sell | O | Sell | O | 1 |
| INVA | Theravance Inc | Pharmaceuticals | 11.180 | Sell | O | Sell | O | 0 |
| VIVO | Meridian Bioscience Inc. | Medical Products | 13.770 | Sell | O | Sell | O | 1 |
| SIMO | Silicon Motion Technology Corporation (Taiwan) ADR | Semiconductors | 37.940 | Sell | O | Sell | O | 0 |
| VIPS | Vipshop Holdings Limited (China) ADR | Retail | 16.330 | Sell | O | Sell | O | 1 |
| ARCT | Arcturus Therapeutics Ltd. | Pharmaceuticals | 42.410 | Sell | O | Sell | O | 0 |
| INDB.TR | Independent Bank Corp TR | Banks | 64.352 | Sell | O | Buy | O | 1 |
| PLT.TR | Plantronics, Inc. TR | Communications Technology | 12.265 | Sell | O | Sell | O | 0 |
| POR.TR | Portland General Electric Company TR | Electric Utilities | 38.395 | Sell | O | Buy | O | 1 |
| VIVO.TR | Meridian Bioscience Inc. TR | Medical Products | 13.770 | Sell | O | Sell | O | 1 |
| NI.TR | Nisource, Inc. TR | Electric Utilities | 22.059 | Sell | O | Buy | O | 2 |
| LADR.TR | Ladder Capital Corp TR | Financial Services | 7.993 | Sell | O | Buy | O | 1 |
