Can you explain what is meant by picking stocks that are acting as strong or stronger than the parent index? Is it merely price performance over a certain period of time, or the fact that it has better price action? For example, say the parent index has a rise of 10% from beginning of year. If stock A has risen 50% since the beginning of year, followed by a drop of 20%, versus stock B has a steady rise of 20%. Do both of these stocks behave stronger than the market?
Edmond PS. For what its worth, I am sending a PM regarding the chart of Citigroup done on July 5. FYI only.
Hello Rita,
ReplyDeleteCan you explain what is meant by picking stocks that are acting as strong or stronger than the parent index? Is it merely price performance over a certain period of time, or the fact that it has better price action? For example, say the parent index has a rise of 10% from beginning of year. If stock A has risen 50% since the beginning of year, followed by a drop of 20%, versus stock B has a steady rise of 20%. Do both of these stocks behave stronger than the market?
Edmond
PS. For what its worth, I am sending a PM regarding the chart of Citigroup done on July 5. FYI only.