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 (8/23/10 – 8/27/10) is as follows:
The third quartile of relative strength ranks delivered the best performance last week — down only -0.11% while the universe was -0.30%. However, there was not a great deal of separation in performance in the different quartiles last week.