Zachary Scheidt

Global Markets in Review: Think Rationally Ahead

Another interesting metric, is the fact that stocks with weak relative strength over the past 12 months (the truly beat up stocks) have led the market higher in the last 6 weeks (the junk has risen first).

This is typical of both bear market rallies AND early stage bull markets. So as Santoli noted in Barron's, this isn't a good metric to determine whether this rally is for real or not. But it DOES give us something to look for.

If the higher quality, financially sound companies begin to show their own strength, then that will help me be more confident in this rally, and put more capital to work.

Zach
zachstocks.com