The chart below is the spread between the relative strength leaders and relative strength laggards (top quartile of stocks in our ranks divided by the bottom quartile of stocks in our ranks; universe of U.S. mid and large cap stocks). When the chart is rising, relative strength leaders are performing better than relative strength laggards. As of 4/11/16:
The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss.
A number of relative strength charts I have viewed (on a percentage of 6.5-7.5) appear to be forming what amounts to low pole reversals. Is it appropriate, when this happens, to change from a 3-box reversal to a 2-box reversal, at which point the buy signal is visible?