Should You Buy Stocks with Good or Bad Relative Strength?
I am wondering if it makes sense to buy stocks that are showing good relative strength, such as $Netflix (NFLX.US)$ , $Amazon (AMZN.US)$ , $Uber Technologies (UBER.US)$ , Meli or ones that are making new 52 week lows and seem more oversold, such as $Meta Platforms (META.US)$ , $Intel (INTC.US)$ , WBD, and some others
Is there any data on this type of stuff in a bear market?
I have been a majority in all cash for the entire year besides some swing trades or small options and I am looking to get invested again, but potentially just for another bear market rally swing.![]()
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I am talking about Relative Strength, not RSI here
For ex:![]()
$Amazon (AMZN.US)$ is up like 16% from its June low
$Alphabet-A (GOOGL.US)$ is below its June low
$S&P 500 Index (.SPX.US)$ is a few % abve its june low
Amazon has relative strength to the market and to Google
Is there any data on this type of stuff in a bear market?
I have been a majority in all cash for the entire year besides some swing trades or small options and I am looking to get invested again, but potentially just for another bear market rally swing.
I am talking about Relative Strength, not RSI here
For ex:
$Amazon (AMZN.US)$ is up like 16% from its June low
$Alphabet-A (GOOGL.US)$ is below its June low
$S&P 500 Index (.SPX.US)$ is a few % abve its june low
Amazon has relative strength to the market and to Google
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Big_Long_Investor : I’ve tried buying really beaten down stocks but it never seems to work out, I also stay away from the ones who have made big moves up, the higher you go the farther you have to fall. So I tend to stay in the middle, just my preference