Don't Ignore This Chart!

UPS Delivers Better Relative Performance

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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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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