Relative Strength Spread

September 27, 2011

The chart below is the spread between the relative strength leaders and relative strength laggards (universe of mid and large cap stocks).  When the chart is rising, relative strength leaders are performing better than relative strength laggards.    As of 9/26/2011:

The RS leaders and the RS laggards have generated similar performance over most of the past two years.  A meaningful breakout of this pattern could bode well for relative strength strategies in the coming years.

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