Tesla versus Toyota

In the continuing battle between Hybrid versus full EV, Toyota, Toyota seems to be in front on a relative strength basis.


Swing trading new breakouts.

As of the close of October 6, 2023, PerfectStorm found three new breakout candidates.



and TSLA:

No new breakouts or breakdowns. Relative Strength still rules.

As of the close of Wednesday, October 4, 2023, a scan of high-volume options could find no new candidates.

The attached illustration of four high-volume ETFs will illustrate the concept of relative strength with positive momentum often will have a long candidate in spite of other markets in decline.

UUP, the dollar ETF has been in an uptrend for a few weeks with high relative strength.


Five-way Relative strength:

Relative Strength with Momentum

Readers of the swingtrader.com blog will have noticed that the overall theme that I have proposed is that to be a successful swing trader one has to understand the principle of relative strength with positive momentum.

I originally proposed the concept in an e-book that I had offered in 2000. Because of my lack of web marketing, it was only downloaded a few times, although it was free.

Over the past few months, I have received multiple offerings of momentum services that offer similar strategies that I have been discussing on my swingtrader.com, relativevalue.com and perfectstormtradingstrategy.com websites for the past ten years or more.

One of the offers was a service, using only four ETF’s, that the provider stated would constantly beat the market.

Over the next few weeks and months, I am going to have on the swingtrader.com website an example, updated weekly or daily if necessary, of my 4 ETF strategy. If followed, the strategy should emulate the best of the services being offered. It is certainly not a recommendation of what to buy or sell, but an example of what can be accomplished by using a relative strength with momentum strategy. It is for illustrative purposes ONLY!

The four ETF’s chosen are the result of my own research. They should portray a representation of the changes in market sector rotation. The four ETF’s have a positive and negative correlation with each other. The ETF’s are displayed here on daily charts.

I will update the daily charts when appropriate.

Remember, Green=XLE, Energy. Red=XLY, Consumer Discretionary. Light Blue=XLU, Utilities. Yellow=XTN, Transportation.

Latest update July 11, 2019, 8:00 AM