In 2010 when I started this post, I recommended that one of the better methods of selecting equities was to find those sectors that were showing high relative strength with positive momentum. Selecting the highest relative strength sector with positive momentum should outperform.
I chose four sectors as illustrations.
XLE: Energy (Green)
XLY: Consumer Discretionary (Red)
XLU: Utilities (Cyan)
XTN: Transportation (Yellow)
The following chart as of the close of Friday, July 9, 2021, shows the current relative strength of these four sectors.
