Charles retweetledi
One of the best concepts about relative strength that I've heard is from @OliverKell_ who emphasises to focus on stocks that are ahead of the market cycle.
Which stocks got back above MA's before the market?
Which stocks hit new highs before the market?
Many will look at the list I shared in the quoted tweet earlier and think they're not participating the last few days and that is a sign of weakness. It's not.
They broke out before the market and now we're seeing rotation in to more lagging names whilst they rest.
But don't lose sight of them, because the market will eventually consolidate this strong move and those leaders that have already been consolidating will likely then resume their trend whilst most stuff rests.
Last thing you want to do is focus on the new, shiny laggards that are playing catch up and miss those leaders because they're going through a natural consolidation.
Focus on those ahead of the cycle.
Nathan Bancroft@n_bancroft2
Some of the leading stocks that pushed out first are already starting to form some potential pivots as rotation shifts in to more lagging names that are playing catch up through the right side of bases or in to new highs. If I was looking to add exposure I’d be focused on the leading stuff that pushed out first. Depending on how the market acts they may only present short pivots in to faster MA’s so keep an eye on them and be ready to pounce. The likes of VRT GEV SNDK DELL STX WDC TER LITE CIEN GLW VIAV NBIS POWL AMAT KLIC etc
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