Recent content by tatrader

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    Relative Strength Trading

    Strong Sectors and Stocks As part of my trading routine, I regularly measure the long- and short-term momentum of the eleven Sectors in the US Stock Market. This helps me determine which sectors outperform the S&P500 ETF, the SPY, and which ones underperform. The graph above shows both the...
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    Relative Strength Trading

    HES – A STRONG STOCK FROM THE STRONG ENERGY SECTOR Our objective is to increase our chances of picking winning stocks using a variety of strategies, namely: Strong Sector / Strong Cap group Technical Analysis Relative Strength Multiple Time Frame Analysis Sound Money Management Let’s...
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    Relative Strength Trading

    You are right. The problem is that MACD turns down as soon as momentum starts losing its strength. In the case you describe, if somebody followed MACD they would lose the uptrend from May till November. What I'm doing is: I measure the percentage of stocks in - let's say - S&P500 that are...
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    Relative Strength Trading

    Thank you! I posted this in November 21st, and the SPY didn't move much higher since then. See the chart below. Then, there was the highest region, in the green box, and the present slide. Let's see what my chart shows. During the peak in the green box, the Market Strength Index...
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    Relative Strength Trading

    STRONG BEARISH DIVERGENCE IN ALL INDEXES In order to gauge the market’s strength, I calculate the percentage of bullish stocks in some important indexes. I then plot these percentages along with the SPY that I use as a benchmark. This allows me to see two things: If the percentages of bullish...
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    Relative Strength Trading

    American Express: A strong stock from an outperforming Sector As of October 8, the best performing sectors in the US Stock Market are the Energy and the Financial Sectors. See the long- and the short-term momentum of all 11 US Sectors, plus the SPY for comparison. Although both the long-...
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    Relative Strength Trading

    Thank you for your comments. As I said, I only trade stocks from Sectors whose Relative Strength is positive, that is, is going up, relative to SPY, and above its 20-day moving average. This of course means that these sectors outperform the SPY. I've found out that trading stocks from the...
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    Relative Strength Trading

    CHOOSING A STOCK WITH BULLISH CHARACTERISTICS, FROM A STRONG SECTOR Everybody’s trying to increase their odds by using various strategies and adding filters to narrow down their choice of stocks. My personal approach is to use the following filters: Choose stocks only from Sectors that are...
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    Relative Strength Trading

    A strong stock from a strong Sector. Hello! I've calculated the long- and the short-term of the 11 US Sectors. Here are the results. Let's choose a stock from XLRE as its short-term momentum is the highest. Here's the daily chart of SPG - Simon Property Group - a large-cap stock belonging...
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    Relative Strength Trading

    Monday, April 19th update: Wells Fargo is getting stronger Here's the daily chart of WFC: Price started climbing along the upper Bollinger Band, a sign of a strong bullish trend. At the same time, the stock's Relative Strength moved up and above its 20-day moving average. Let's look at the...
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    Relative Strength Trading

    Caterpillar has just started an uptrend In early February WFC broke out and above the blue resistance line and started moving along the upper Bollinger Band. Finally, the stock is also moving above its rising 10- 20- and 50-day moving averages. The Relative Strength of WFC is moving up and...
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    Relative Strength Trading

    WFC is showing strength First of all WFC - Wells Fargo & Co. - belongs to the Financial Sector that is showing strength now. Let's look at WFC daily chart Price has just broken above a local resistance. MACD is moving up and above its signal line The stock's Relative Strength is also...
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    Relative Strength Trading

    KOPN - Copin Corp. daily chart In early January KOPN broke out and started moving along the upper Bollinger Band. The price is currently moving horizontally, a sign there’s equilibrium between the bulls and the bears. Finally, the stock is moving above its rising 10- 20- and 50-day moving...
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    Relative Strength Trading

    January 9th update: The strongest stocks in the S&P100 See below one of the strongest stocks taken from the above diagram
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    Relative Strength Trading

    See below the daily chart of Amazon The price moved above the upper Bollinger Band. Apart from that, the price moves above its 10- 20- and 50-day moving average. What's more, the Relative Strength of AMZN just turned up and moved above its 20-day moving average From AMZN’s weekly chart...
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