The table below shows the performance of a universe of mid and large cap U.S. 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 (5/3/10 – 5/7/10) is as follows:
Wow. That was unpleasant. High RS stocks performed a little worse than the universe in a week that was characterized by panic over rumors of out of control selling on electronic exchanges and jittery markets over Europe’s debt crisis (which, judging from the futures this morning, may have been addressed over the weekend.)
