Category: Managed Momentum
Managed Momentum
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What really drives stock prices down?
What really drives stock prices? The price of stocks, just like groceries, is driven by supply and demand of people “the market” buying and selling. What drives stock prices and the stock market really is… Read More
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Divergence between Value, Growth, and Momentum.
There is an interesting divergence today between Momentum, Growth, and Value. Up until now, Value has lagged Growth and Momentum, as seen in this 5-year chart. The underperformance of Value has been a topic of… Read More
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Investor fear has been driving the stock market down
I like to observe the return drivers of price trends. Though I primarily focus on the direction of the price trend and volatility, I also consider what drives the price trend. Yesterday I suggested the… Read More
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Will the stock market hold the line? or do we keep hedging risk? and opportunity for high income yield
The U.S. stock indexes declined -6.84% for the large-cap S&500, -11% for mid caps, and about -19% for small-cap stocks mostly in the single month of May. Since June 1st, however, these same stock indexes… Read More
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What has changed? Global trends, volatility expansion and contraction, plus some rising interest rates
My focus is: What has changed? if I see no change in the direction of the trend of volatility, then we just go with the flow. Realized (historical) and implied volatility (VIX) has settled down… Read More
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U. S. Sector Trends
Yesterday I shared my observations of the overall stock market in The Stock Market Trend. Here are my observations of U. S. Sector trends to see which sectors are trending, which sectors have experienced declining momentum, and where… Read More
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Earnings season is tricky for momentum growth stocks
Momentum stocks are stocks that show high upside momentum in their price trend. Momentum stocks are trending not only regarding their absolute price gains but also relative strength vs. other stocks or the stock market… Read More
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Growth Stocks have Stronger Momentum than Value in 2018
After a sharp decline in stock prices in February that seemed to shock many investors who had become complacent, the stock market indexes have been trying to recover. At this point, the popular S&P 500… Read More
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Betting on price momentum
“Don’t fight the tape.” “Make the trend your friend.” “Cut your losses and let your winners run.” “These Wall Street maxims all mean the same thing—bet on price momentum. Of all the beliefs on Wall… Read More