In a recent Q&A with Patrick O’Shaughnessy, I said the following when asked about the momentum factor (re: momentum investing): I’m a huge fan of the momentum factor, mainly for its diversification benefits. It’s also the least understood of the well-known risk factors. I’ve done a ton of work on momentum in my day job, but haven’t been too impressed with the retail products available. Most cost too much or
Tag "momentum trading"
Up 12 of the last 13 days at mid-day, equities are cutting through some rarely-tread waters today with the June S&P 500 E-mini futures contract (ES) battling to close >75 on it’s daily RSI amidst redlining momentum. This “overbought” reading (defined as anything >70) is commonly regarded as sign of an imminent bearish reversal: something a glance at ES affirms with few exceptions. But, anyone who has attempted to use
By Alex Salomon Happy New Year to everyone!! It’s that time of the year when energy is flowing, so let’s take a look at some charts that appeal to me and offer up some ideas. Not advice, just sharing some trading ideas! Amazon.com (AMZN) The appeal is a break out above the multiple tops. When it happens (call it > $263) then the chart eventually opens up to $290. Just like