Over the past year, United Parcel Service (UPS) has gained 13.77% while FedEx Corporation (FDX) has lost 9.80%. Relative strength between these two air delivery and freight services companies has gone back and forth over the last decade, but currently UPS has the upper hand and is the company to own....until the relative chart tells us otherwise. Here's the current relative picture:
The green shaded areas represent relative strength in UPS shares while the red shaded areas represent relative strength in FDX. Over the past decade, UPS has enjoyed longer periods of relative strength while FDX relative strength has typically been fast and furious. Currently, UPS shows relative strength and I'd look for that to continue so long as the recent relative low at .625 holds.
Happy trading!
Tom
