The Closing Print live trading and financial blog during market hours.

Relative-Strength Winners and How to Find Them

There are so many stocks that look good in the healthcare sector and biotech industry groups, that its hard to focus on just one. The winning stock picks we are looking at “LIVE” today, exhibit exceptional relative-strength to the S&P500 for starters.

The upper panel reflects the relative-strength to S&P500. When looking for bullish trades, we focus on sectors exhibiting momentum. Using a “Top Down Approach” we then look at the sub industry groups like biotech and medical devices as an example. In addition, the IBD50 list is a good starting point. Just sort by industry group.

XLV relative-strength

Biotech also looks strong, as it broke out yesterday. Look for stocks in this industry group to follow through today.

IBD50 Listed candidates PRAH and EW have been on our watch lists over the past few weeks. They broke higher yesterday. We’ll look for these to resume their upward trajectory in the short term.

Remember to check back on previous watch lists on the site, as many of these stocks will break out and continue. Its the reason we keep the old watch lists available.

Finally, we always add to stocks and positions in sectors showing relative-strength. XLF and XLI are doing just that. Using the ratio XLF:$SPX and XLI:$SPX will produce the charts above. Then all you need to do is track the industry groups therein. Doing this produced the past two weeks winners, BAC C MS BA VRX MDXG and more.

Happy Tuesday,


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