Tag Archives: relative strength

Use Relative Strength to Confirm Trend Direction

In previous articles, I explained how to make market timing decisions with relative strength and how to use relative strength to identify market trends. Both of these articles used relative strength to forecast trend changes in the equity market and … Continue reading

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Posted in Market Commentary, Market Timing, Relative Strength, Security Selection, Technical Analysis | Tagged , , , , | 8 Comments

Market Timing with Relative Strength Revisited

Two months ago in an article titled “Use Relative Strength to Identify Market Trends,” I explained how to use the relative strength of two different indices, futures contracts, or ETFs to identify market trends.   This is one of my … Continue reading

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Posted in In-Depth Article, Market Commentary, Market Timing, Relative Strength, Strategy Development, Technical Analysis | Tagged , , , , | 3 Comments

Market Diverges From Economic Data

Economic releases were mixed last week.  Building permits came in stronger than expected, but are still at anemic levels.  Leading indicators were up 0.3% last month, which was also stronger than expected. Unfortunately, the ECRI weekly leading indicator (WLI) declined … Continue reading

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Posted in Market Commentary, Market Timing, Summary Market Indicator Score | Tagged , , , , , , , , , | Leave a comment

Use Relative Strength to Identify Market Trends

Relative strength rotational strategies have a proven track record of success, but the potential uses of relative strength extend much further than security selection.  One of my favorite techniques is to use the relative strength of two different indices, futures … Continue reading

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Posted in Economic Indicators, Futures, In-Depth Article, Market Breadth, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , | 3 Comments

A More Efficient Relative Strength Indicator

Relative strength investing has a proven track record of success.  Most traders have heard the term, but know very little about developing or trading strategies based on relative strength.  The concept is simple: buy the strongest securities and sell the … Continue reading

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Posted in Economic Indicators, In-Depth Article, Market Breadth, Market Timing, Options, Relative Strength, Stocks & ETFs, SWAMI Charts, Technical Analysis | Tagged , , , , , , , , , , , , | 5 Comments