[ RS 99/RS 87 Stocks ] I briefly saw somewhere a scan performed for stocks with a Relative Strength of 87. As I have only minimally contributed to this thread, I do not know if the following information has already been repeated:
William O' Neil, in his interview with Jack Schwager in Market Wizards, notes that of his CANSLIM technique, particularly the L(for leader/laggard) part, he mentioned that the 500 best performing stocks during the 1953-1985 period had an average relative strength of 87 before their major price increase actually began.
While I would not want to divert the direction of the thread from its main purpose, it would seem prudent, given the existing information, to search for those stocks that achieve the RS 87 threshold, as historical evidence presents these particular stocks to be the ones that have provided the greatest returns on one's speculation(as opposed to investment, which could also be the case).
I think, therefore, that the question of whether it is too late to buy the RS 99 stocks is too late has been raised, and for good reason. That leads to the next question:
On average, approximately how long does an RS 99 stay within that category, and for the given time period, what is the average percentage change for that period?
There's a lot of fascinating research that needs to be done, and I'm glad your thread has provided a platform from which to ask these questions.
Regards,
Rainier |
