Welcome to the daily Amyrlin Analytics drop, where we use techno-fundamental analysis to keep you in tune with the market, give you a graphical overview of the day's activity, and help you invest with conviction.
Quick note: We're pleased to be bringing the daily drop analysis to you absolutely free all the way through the end of April 2021. Starting Friday, April 2, however, you will be required to be a free subscriber to Amyrlin Analytics in order to access these analyses.
New Relative Strength Highs in Top Groups
The concept of relative strength is integral to tracking institutional activity in the markets. For the analysis below, we are only looking at stocks who are in the top 10 performing industry groups. The purpose of this analysis is three-fold: 1) understand how stocks in top groups performed today; 2) understand how many stocks in those top groups accomplished performance today, relative to the S&P 500, that was better than at any point in the last year, and 3) of those stocks, which are highlighted in neon green, what is their liquidity, and overall price percentile rank?
Tip: It's harder for big liquid stocks to make big single-day price moves. So when it happens, take note!
Where's the Strength Coming From?
Every day in the market carries its own tenor, but no matter the color of the tape, there is always strength to take note of. In the plot on the left, every day we highlight the groups that saw the most stocks achieve new 52-week highs in relative strength. Next to it, we call out the individual stocks that are making those relative strength highs, while plotting the performance of the overall group, and shading the stocks according to their price performance percentile rank.
Tip: In the graph to the right, groups are represented by the black dots. The closer to the top right corner of the plot a group is plotted, the stronger it is. Stocks with the strongest price performance will be shaded purple.