• Trading 101: Stocks Showing Relative Strength

    by  • June 25, 2013 8:56 am • Trading 101 with Peter Bryans • 0 Comments

    On Tuesday 6/18 the S&P 500 closed at 1,651 (marked with the vertical line on the chart below). Since last Tuesday, we have had a sharp sell-off. The S&P 500 closed yesterday (6/24) at 1,573—this amounts to nearly a five percent drop.

    (courtesy of eSignal)

    In the midst of all this selling, there have been a very select number of optionable equities that have actually traded higher since 6/18. I have some of these stocks presented to you below, sorted by those with the highest return since last Tuesday. Finally, I have included a couple of charts on two stocks that I find especially intriguing from this list.

    From the above list, both Groupon (GRPN) and Charles Schwab (SCHW) are interesting plays. GRPN (featured below) has been in a solid uptrend and is clearly ignoring the rest of the market. The company reported earnings on 5/9 and posted numbers that beat revenue expectations. GRPN has been trading off of this momentum since these better-than-expected numbers. The equity is up nearly four percent since the S&P has sold off five percent.

    (courtesy of StockCharts.com)

    Brokerage firm Charles Schwab (SCHW) is another name I really like as the stock has posted a year-to-date gain of 44 percent. The shares have held strong in this market pullback, and SCHW has managed a slight gain since 6/18. The company is currently listed for an unconfirmed earnings date on 7/15. Should the firm post better-than-expected numbers, we could see the trend continue higher.

    (courtesy of StockCharts.com)

    Good luck trading out there.

     

    About

    Peter Bryans joined the Schaeffer's Investment Research trading team as a Trader in April, 2012. A graduate of the Fisher College of Business at The Ohio State University -- where he concentrated in Finance -- Peter previously held internships with an insurance broker and a wealth-management firm. In his current role, Peter trades a variety of our real-time option services and also hosts our "Options Apprentice" weekly webinar presentations.

    http://www.schaeffersresearch.com

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