The Relative Strength Factor

The Relative Strength Factor is a vital member of the trading strategy toolbox for many longer term investors.

It is used to measure performance of one instrument against a group of instruments and from that measurement an investor can quickly determine if he will do further work or look for another instrument to invest in.

ETF investors use this measure constantly as they are evaluating. Several sites on the internet have screeners available for their version of the Relative Strength Factor.

There is more than one way to develop a Relative Strength Factor, eg you can use the current stock price move against the related index value, or compare percentage change in the price versus percentage change of the index price.

There are a few places on the internet that offer screens related to the Relative Strength Factor'

• Investors Business Daily for Stocks
• ETFSCREEN for Etfs
• Microsoft
• ETFdb
• TMXMoney
• Morningstar

Here is an article regarding screening Wall Street Journal including a number of resources.

ETF Information Overload!

According to Dorsey Wright

'Relative strength strategies have a long history of delivering market-beating returns.'

ETF Chart of the Day, November 25, 2014

This ETF, Direxion Daily Healthcare Bull 3X ETF is showing considerable strength of late and probably deserves a close look.

Some information from the management of the fund, Direxion Investments:

Fund Symbol	CURE
Daily Target	300%
Intra-day Indicative Value	CURE.IV
Bloomberg Index Symbol	IXV
CUSIP	25459Y876
ISIN	US25459Y8764
Gross Expense Ratio	1.21%
Net Expense Ratio	0.95%*
Inception Date	Jun 15, 2011

Overview

The Daily Healthcare Bull 3x Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Health Care Select Sector Index. There is no guarantee the fund will meet its stated investment objective.
This leveraged ETF seeks a return that is 300% the return of its benchmark index for a single day. The fund should not be expected to provide three times the return of the benchmark’s cumulative return for periods greater than a day.

Performance
NAVs and market price information as of November 24, 2014

Monthly Quarterly

All data as of 10/31/2014
Ticker	Fund Name		1 Mo %	3 Mo %	YTD %	1 YR %	3 YR %	5 YR %	10 YR %	Since Inception	Inception Date	Expense Ratio* (Gross/Net %)
CURE	Daily Healthcare Bull 3x Shares	NAV	14.81	32.62	71.99	100.25	96.12			71.22	6/15/2011	1.21 / 0.95*
		Market Close	14.92	32.69	71.80	99.16	94.06			71.21

From WallStreet Scope Nov 7

Direxion Daily Healthcare Bull 3X ETF (CURE) of the Financial sector (Exchange Traded Fund) lost -2.75%, a change from open of -3.5700% ($-3.23 per share) at the close of the normal trading day Friday with a volume of 95712 shares.  Direxion Daily Healthcare Bull 3X ETF (CURE) ended the day at $117.43 with a market cap of ,  insider ownership of , volume of  095,712 and a weekly performance of 2.84%. Direxion Daily Healthcare Bull 3X ETF (CURE)’S monthly performance stands at 13.27% and Direxion Daily Healthcare Bull 3X ETF (CURE) is considered a stock to watch for the upcoming trading day.

Here is a chart made after the close on Tuesday Nov 25, you can see that this stock has had a long advance and is still very strong.

In fact, the Relative Strength Factor for this ETF is 99.6

I want to draw your attention to the Point and Figure chart for this instrument, you will see a Bullish Price Objective of $215.00

This ETF is certainly deserving of a place in your watchlist and may well become a part of your trading strategy.


Good Trading..!

Some additional information on the Relative Strength Factor