Where's the Alpha?

Here's a screen shot of half of a relative strength spread sheet that I keep up with:This spread sheet follows 30 different etfs and index funds that range from various market indexes (qqqq, iwm, oex, etc.), sectors (xlp, xlk, xli, etc.) and other asset classes (bonds, gold, copper, foreign stocks). It automatically updates itself every day and it helps me keep up with where the alpha's at.

The relative strength rating is a basic formula that tracks the daily return and compares it to the return of the S&P to generate a basic relative strength rating. I take this relative strength rating from the current day and then combine it with the prior day's reading and weight the current days relative strength higher in the computation...thus putting more weight on today's price action but still taking into account yesterdays, which in turn takes into account the prior days rating. This method of calculating smooths out the relative strength ratings but yet still provides quick enough signals to help see where the order flow is heading on a macro level in the short run.

On a different note, sadly, I lost my trial today. It's one of those things that happens but it always stings. There's always one side that has to lose in a trial and today was our turn. Enough of that though. I'll be back tomorrow.

TLT