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 (12/5/11 – 12/9/11) is as follows:
Although the stocks with the very best relative strength didn’t have a great week compared to the universe, those stocks in the third quartile (above average relative strength) actually did quite well.