We wrote about Relative Strength Investing (RSI) a couple of weeks ago. We are currently developing a system that uses Relative Strength Investing to help us decide which sectors or countries leading the market. We will disclose the detail about this system in our future posting. What we can say now, it is our hobby project; and we are doing it in our spare time.
Today, we tried to run our RSI system against our ETF database. Here is the list of ETFs that are leading the market in the last 5 days.
| 1 day | TAN: +5.72% ICF: +4.6% RWR: +4.54% |
| 2 day | ICF: +4.98% VNQ: +4.83% RWR: +4.74% |
| 3 day | GDXJ: +2.65% XBI: +1.99% IHF: +1.84% |
| 4 day | ICF: +2.4% RWR: +2.32% VNQ: +2.29% |
| 1 week | GDXJ: +4.35% ICF: +3.96% VNQ: 3.64% |
Note that we only choose ETFs with the following criteria:
- average volume at least 100K daily
- no leveraged ETF is included
As you can see, TAN is leading the market today with +5.72% increase. For those who don’t know, TAN is an ETF that invests in solar-cell related companies.
If we go back to 2 days range, we can see that ICF is leading the market with a total of +4.98% increase. ICF is an ETF that invests in large and liquid REIT (Real Estate Income Trust).
Based on a table like above, we can see which sectors or countries are leading the market. For example, we can easily identify that REIT dominates the market this week.
