Measuring The Performance Of Stocks, Industries And Sectors

Show all Sectors Relative Strength Trend
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We show major market sectors ranked by the average Relative Strength of the sector's component stocks. Industries are ranked in the same way.

The absolute momentum of each symbol is measured against the absolute momentum of the S&P 500 to give a percentage performance number, by which each symbol is percent ranked against all other stocks. We end up with a very useful measure of Relative Strength.

We show major market sectors ranked by the average Relative Strength of the sector's component stocks. Industries are ranked in the same way.

The absolute momentum of each symbol is measured against the absolute momentum of the S&P 500 to give a percentage performance number, by which each symbol is percent ranked against all other stocks. We end up with a very useful measure of Relative Strength.

Data With Real Value

Please note that this is not the same as the RSI indicator found on most trading platforms. Some platforms include a measurement of Relative Strength, or an indicator -- note that this is not the same as what we are producing here either.

An indicator or measurement of Relative Strength can show you how strong that individual stock is against a benchmark such as the S&P500. This is useful piece of information, but it is a single number or single data point in isolation. It does not allow you to see where this stock sits in terms of comparing performance of other stocks.

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This is the Relative Strength Ranking that we provide, where the Relative Strength of each one of the 3000+ stocks in our database is compared to the Relative Strength of all the other stocks and ranked accordingly.

This information is not available in any trading platform I have ever seen -- even those which allow their customers to use custom code. Producing this data is not a trivial matter and is probably beyond the resources of most traders.

Instant Access To The Stocks You Want To Be In

A symbol being in the 95th percentile or above means that it has stronger momentum than 95% or more of all symbols. The universe of symbols has been filtered to remove items with very low price and/or very low liquidity.

This method has a broad base and a broad application, as it takes into account the performance of all the stocks in a sector. It is likely to be reflecting the market well most of the time.

Our Database shows over 3,000 stocks, filtered from the universe of US Common Stocks, to avoid very low price and very low volume -- the institutions cannot trade these low-liquidity items, and we want to avoid them also. So we keep them out of our calculations and process only those stocks we would want to trade.

Effective Top-Down Analysis In Minutes

The above functionality means that you can filter for the strongest industry, then the strongest industry, then the strongest stocks within that industry and/or sector. This can be done in literally seconds, providing an ideal top-down analysis in less than a minute.

The weaker stocks can also be identified equally accurately and efficiently for short trade ideas.

For those who trade spreads, the combination of long trades ideas and short trade ideas from these methods is appealing and powerful.

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