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 (1/18/11 – 1/21/11) is as follows:
Some of the strongest relative strength stocks sold off this week after reporting earnings for the last quarter. The top quartile underperformed the universe by 1.55% last week and the top decile fared even worse.