A Perplexing Market & Examining Relative Strength
John Davidson is back for this week’s episode of Money Wise – and he’s on fire! The guys start the show with last week’s numbers from Wall Street before moving into some stunning examples of high relative strength despite poor statistics. The Dow was up 0.9%, the S&P 500 was up 0.9%, and the NASDAQ was up 1.3%. The Dow is up on the year, as are the S&P and the NASDAQ. The Money Wise guys discuss a market that continues to be perplexing, with volume still on the decline. They share what it means when the only people in the market are “renters” not investors, before giving some statistics that are shocking, to say the least. As an example, John shares earnings for Meta and some other big-name companies with surprising year-over-year earnings numbers and no sales growth – yet they’re still out-performing 98% of the rest of the market. The guys discuss what a stock’s relative strength means, and how current market conditions are playing into the market being trapped in a tight trading range.
What is the Relative Strength Index?
According to Investopedia, relative strength is a momentum indicator. Officially termed the relative strength index, or RSI, it’s often used in the technical analysis of stocks. Relative strength measures the speed and magnitude of a security’s recent price changes to evaluate overvalued or undervalued conditions. Relative strength is measured on a scale of zero to 100, with 100 being the strongest.
In the second hour, the Money Wise guys share The Best Investment Advice Ever. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.