It was a unremarkable day for stocks today. Not much action at all. In terms of RS performance, both the highest and lowest deciles didn’t fare as well as the universe average. The best performance came from the lower ranked stocks, but not from the lowest ranked stocks (if that makes any sense).
A lot of the poor performance in the top decile RS stocks came from the restaurant group. I checked a couple of the names for a news item, but didn’t find anything that would usually cause such a large amount of underperformance from an entire group. CAKE, BOBE, DRI, EAT, and CMG were all down substantially more than the market today. When you look at the performance of the top 3 deciles for today you can see that in other areas the performance of high RS stocks was actually stronger than it looks.
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