The table below shows the performance of a universe of mid and large cap domestic equities, broken down by relative strength decile and quartile and then compared to the universe return. Those at the top of the ranks are those stocks which have the best intermediate-term relative strength. Relative strength strategies buy securities that have strong intermediate-term relative strength and hold them as long as they remain strong.
Last week’s performance (10/5/09 - 10/9/09) is as follows:
We’ve written much about how the spectacular laggard rally, which started in March, has not been too kind to high relative strength strategies for most of the last 7 months. However, it is encouraging to see that high relative strength stocks outperformed the laggards and the universe for the second straight week.
