This indicator attempts to show what is happening to the market for the current period compared to
the momentum of a longer period.
Not exact matches
But a
long period of U.S. economic growth could be interrupted in the coming years, despite a historically low unemployment rate
of 4.1 percent, and record - shattering
momentum on Wall Street that added trillions to the value
of stocks in 2017.
During
periods of decline it can be helpful to find
long ideas among stocks which a) have low levels
of debt, in case the market decline deepens, b) have a history
of high returns on equity and investments c) have shown price
momentum despite waning
momentum in the overall markets.
After the third
longest bull market advance on record, fresh deterioration in key trend - following components within our measures
of market internals (see Support Drops Away) recently joined this extended, overvalued, overbought, overbullish peak, even as the S&P 500 hovers at the top
of its monthly Bollinger bands (two standard deviations above the 20 -
period average) and cyclical
momentum rolls over from a 9 - year high.
«This mechanism means that little thunderstorms — fast, abundant, but not very strong thunderstorms — over a
long period of time can actually accumulate so much angular
momentum right on the pole, that you get a permanent, wildly strong cyclone.»
If you're concerned about losing steam, move through an interval plan that consists
of five minutes
of jumping, alternating with one - minute rest
periods; it will take a few minutes
longer, but you'll keep up your
momentum and enthusiasm the whole way through.
In the absence
of foresight, a diversified strategy that combines different information sources (fundamentals, value, risk appetite and technicals), trading strategies (
momentum and contrarian) and holding
periods (daily, weekly and monthly) far outperforms narrower approaches over the
longer term.
In this way,
momentum might look good on paper but most investors should think twice, or thrice, before using it because
periods of significant under - performance are likely, even though the
long - term numbers have been good.
Academic research shows that over the
long run,
momentum for stocks works well with a look back
period of 3 to 12 months.
There may be evidence
of price reversals in
long periods (3 to 5 years) and there is the contradictory evidence
of price
momentum — losing stocks are more likely to keep losing and winning stocks to keep winning — if you consider shorter
periods (six months to a year).
There's a million ways
of constructing a sector rotation based on
momentum timing
periods and weighting, some drastically out perform others in backtests, but ultimately they are likely to arrive near the same place in the
long term.
Though the
momentum anomaly (weak as it has been recently) usually favors portfolios with stronger price
momentum, the relationship breaks down over
longer periods of time, and more severe moves, where mean - reversion tends to take over.
Following a
period of uncertainty and frustration in Indigenous tobacco control, there's hope that recent myth - busting research and signs
of some
long - awaited Federal Government commitment will inject new
momentum into efforts to further reduce smoking among Aboriginal and Torres Strait Islander people.