Relatively Speaking !!
I just finished reading this book called Beat the Market: Invest by Knowing What Stocks to Buy and What Stocks to Sell by Charles D. Kirkpatrick. This book has resonated with me quite a bit. Needless to say, I highly recommend it.
The book presents the authors research where is looks at the market in relation to itself and introduces the concept of relatives. The author compares the performance of the stock in relation to the other stocks in the market and ranks them in percentiles. He then 'backtests' and claims that the 'market leaders' continue to lead the market in the short term and yield better than the market.
Sounds good to me. It is a simple idea that makes sense.