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Friday, July 8, 2011

This Week's Industry Performance


One realization that has dawned on me lately is that after the market has had a substantial rally, the percentage of new highs is a more reliable indicator of group strength than the percentage of stocks advancing, but that relationship is reversed after a substantial correction. This week there have been 32 industries that had 100% of their stocks having positive weeks,  nearly useless bit of data. The relative strength data is more reliable than the others, and is accurate for jusdging group strength in both up and down markets, but has the disadvantage of being very time consuming to gather and practical only on a weekly basis. I will have new relative strength data tomorrow, but I don't know if I will bother re-running this scan.

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