Yesterday I posted about the outperformance of the top decile of RS stocks versus the bottom decile. Today that action was reversed. Most of today’s outperformance came from the bottom deciles of our RS ranks. The top decile of RS stocks were actually down on the day!
Energy and Financials had good days, while Consumer Cyclicals, Healthcare, and Consumer Staples all performed much worse than average. Technology, a group that has been gaining a lot of strength lately, was a market performer.
For the first part of the rally off the bottom that began in March, there was consistent outperformance by the lower ranked RS stocks (the laggard rally). It seems we have now moved into a period of increasing performance dispersion between the leaders and laggards. One group dramatically outperforms the other on a day-to-day basis, but there is no follow-through yet one way or the other.
