Mailbag: Sectors, SPDRs and Price Relative

(Posted 07 June 2000)

 

Q: I have questions about sectors. Take energy, for example -- it's up, but where do i find the individual stocks in this sector? How do i capitalize on this info from the chart?

A: On our Sector Analysis page, we are charting the AMEX Sector SPDRs which can be traded just like regular stocks. The symbol for the Energy sector is "XLE" and you can buy or sell that just like any other stock.

The list of stocks that make up each SPDR can be found on the Nasdaq-AMEX web site. We have links to that site in the Glossary definition for each SPDR. The "Glossary" link on the left side of our web pages can take you there. This icon takes you to the appropriate Glossary term for the Chart Gallery or CandleGlance chart. For example, here's the Glossary definition for XLE.

Chip Anderson

Q: Does your price relative do the same thing as a RP line? I understand an RP line will move upwards when a stock does better then the general market and will move down when it underperforms the market. A sideways move indicates it is in line with the market, whether the market is up or down. Also, how do I generate a chart on a specific stock showing the RP line or relative strength?

A: The price relative equals the price of the stock divided by the index (or another stock) with which you want to compare. The line is then plotted with outperformance indicated by a rising line and underperformance indicated by a declining line. I am not sure what RP is, but it sounds like it could stand for Relative Price, which would most likely be the same thing.

There are two ways to measure relative performance on StockCharts.com:

  • From our perfchart gallery, where up to 5 symbols can be entered to compare relative performance. Our performance chart gallery has a number of predefined performance charts.
  • Using our SharpCharts tool, you can select Price Relative from the indicator list at the bottom and then choose the symbol with which you want to compare your stock. The default is $SPX, but you can enter any index or stock symbol. For example, here is a chart of Lucent with price relative in the top window.

Cheers, Arthur Hill