Tag "momentum trading"

The Momentum Factor: Why Momentum Investing Works

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

Redlining Momentum: Is the S&P 500 At Risk of Blowing Up?

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

Trading Ideas for the Week of January 7

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