Thursday, June 16, 2011


I've read that relative strength persists and relative weakness persists. I am presenting here a stock of relative weakness. I have very little experience with individual stocks; I am presenting the parallel channel below because it does intrigue me. I welcome any thoughts on the matter.


  1. Hi George,

    HPQ weakness is probably due to the EPS revisions trend which is downward. The stock is expected to accelerate its annual sales growth rate in the future but the EPS revision downward is a big negative. For a long, there might be negative surprises in the future so its risky.

    I have found that individual stocks can display relative weakness or strength for a while but I do not think this gives any indication regarding the future performance of these stocks.

    For example, today WGO is down 20% after a bad earnings report. Yesterday the stock was much stronger than the market. A better example, because it is linger term, would be SAPE which was underperforming the market in the beginning of the year and then shot up and now it stays there and does not correct at all with the market.

  2. Thanks for your inputs, Adi. If HPQ's relative weakness won't necessarily persist, as you're suggesting, than from a technical standpoint, it looks attractive to me because it is very close to that trendline, which would serve as a pivot point.