Attached .Xls contains the latest Industry & Sector Relative Strengths.
P123 RelStrTbls 0314.xls (379 KB)
J Paul:
Thank you for info, but I have a question: how do you rank sector? Let’s say, the first 12 sector. I just can not find how to rank them. Thanks.
Hi Paul,
interesting data, but I would appreciate deeply some help with the interpretation: specifically, how do you generate or screen the ranking of the stocks. Yes, they are relative strength, but relative strength of what? To put it short, what are you measuring and ranking?
Thank you in advance for your invaluable advice!
Yours,
Patrick
Hangwei and Patrick
This is not Welles Wilder’s Relative Strength Index, but is the ratio of the 26 week moving average of price divided by the current price. This is the relative strength by ratio analysis advocated by Charles D Kirkpatrick, CMT. His method has been published and found to be “statistically significant” by the Journal of Finance.
The screen can be viewed Here
Only NonOTC and issues greater than $10.00 are returned. There were 3326 stocks ranked in this manner. Those issues with like IndCodes are grouped and an average of the summed RelStr for each group is calculated. Sector RelStr is found in the same manner i.e. an average of the IndGrp RelStr grouped by sector.
J Paul:
Thank you for sharing.
Hongwei Hui
J Paul:
You mentioned the Kirkpatrick method of relative strength, saying that the Journal of Finance found it statistically significant.
I have been chasing for a while that Journal of Finance article. Do you have a link to it ? I do not mind paying for it.
Thanks
Martin
Martin
The information concerning Kirlpatrick is from Robert W Colby’s book “Technical Market Indicators” Pgs 600 - 609 and is far too long to try and copy here.
This book is well worth it’s price HTH
J.Paul: tjanks ! !
Martin
Hi,
Have you tried to incorporate Industry Relative strength using Industry Formula’s such as Pr26WRel%ChgInd and Pr13WRel%ChgInd. It seems to me it should be possible to get similar results, yet using these as 50% of a ranking weight along with your other factors posted in the other thread does not work nearly as well as the results you posted.
Any thoughts?
Don
Don,
I use this method live in the market and purchase only those few that are advancing at the time. The attached list has a few of the issues on my watch list for this week. You can see the Industry & Rank% along with the Ranks from Excellent and my Crumbs.
The ranker used in thread 3163 is Modified and adds a touch of Volatility and market performance. I have no further suggestions other than to offer these tables as food for thought. [>:)]
