The market staged quite a recovery in the last hour or so of trading today. Throughout the day the RS laggards were outperforming the RS leaders, but that spread widened during the last hour. The best performing groups today were Energy (+6.60%) and Financials (+4.79%). But when you break out performance by quartile and group you can really see where today’s action was:
The bottom quartile stocks in the Energy and Financial groups were on fire today with returns well above the +2.69% equal weighted average for the universe. The goal of any RS strategy is to avoid the lowest ranked stocks in the universe so it’s tough to capitalize on these types of moves.
