
Relative Strength FIRST, setup SECOND. Today is a great day to do your homework & train your eyes. And when I say “do your homework,” I mean asking a stupidly simple question: "How is a stock behaving relative to the market + relative to its sector/group?" That’s literally it. If the indices are weak and a stock is: - holding key levels +barely pulling back - tightening up + respecting EMAs - building higher lows intraday …that’s relative strength. But if the market is green and the stock still can’t hold pivots or keeps lagging against its sector, I lose interest very quickly. One of the best analogies I’ve ever heard for relative strength is the beach ball underwater. When $SPY + $QQQ are under pressure, my job is to study what refuses to break. The names holding structure while everything else bleeds are usually institutions showing their hand in favor... Those are the names I care about: 1) the stocks staying above moving averages 2) holding structured tight ranges 3) refusing to fully participate in market weakness Because once pressure lifts and the market stabilizes, those names usually don’t just “bounce,” but launch. That built-up pressure gets released all at once, just like the beach ball. Focus on leadership first. The setup matters, but the stock selection matters even more. A mediocre setup on a true leader will usually outperform a perfect setup on a weak stock. Study this concept deeply because once you train your eyes to recognize relative strength properly, it's a whole different ball game.


























