Momentum

Relationship of Momentum stocks and Value stocks has historically demonstrated that at market tops, Momentum does best while Value lags. That pattern is occurring now, but based on prior history the top would not come until Q1 2011.

• Read more

Momentum cannot sustain itself, as multiple trends reversed over last two months. Profitability focus has returned to the marketplace as risk aversion grows.

• Read more

As one of the oldest investment philosophies, value investing has certainly stood the test of time. The recent market meltdown is no exception.

• Read more

Most quantitative portfolio managers employ some variation of the momentum strategy, and most have had a hard time with this particular strategy since the end of 2007.

• Read more

While there is plenty to worry about, some important technical trends still suggest that November 20, 2008 stands a good chance of being the final low of this bear market.

• Read more

Last January we noted the appearance of a rare and dangerous technical configuration in the Dow Jones Industrials Average. Some analysts have described this topping pattern as the “Killer Wave”, and did it ever live up to that nickname in 2008.

• Read more

The November leg down in stocks was brutal. However, from a technical perspective, the decline was accompanied by the kind of  “positive divergences” that typically appear at major lows.

• Read more

Materials sector has fallen fast and hard in our GS Score rankings and is now the worst rated. Still see further downside based on valuations and technical factors. No, we do not think the underlying commodities can outperform while the stocks fall.

• Read more

Price momentum now indicating there may still be one more leg down in this bear market. Typically, price lows come after momentum lows, and a new momentum low was hit in mid-July. Similar analysis of NYSE New Highs/New Lows data supports this conclusion.

• Read more

“Given the broad declines in the stock market since October 2007, are there any particular industry groups which are beginning to look washed out enough to trigger a buy signal on the VLT work you employ in your Group Selection Scores?”

• Read more

Our VLT (Very Long Term) Momentum algorithm—alternatively known as the Coppock Curve or “Madness of Crowds”—has just rolled over after forming a rare “double top” formation. Why has the rare VLT Double Top typically proven lethal for the stock market? 

• Read more

Quite simply, VLT (which stands for Very Long Term) is a momentum oscillator which works best as a buy signal. Some market technicians have also suggested that VLT Momentum back-tests well as a currency indicator.

• Read more

With this category now breaking into negative territory, we thought it would be interesting to look back at the other periods when the Momentum/Breadth/Divergence category shifted from a positive net reading to negative.

• Read more

Energy sector earnings growth has helped keep overall S&P earnings advancing at a relatively strong rate. Growth would be about 9% to 10% below reported growth if Energy stocks were excluded.

• Read more

Our equity exposure still overweight in small and mid cap stocks, but we expect the market is progressing to a state of parity.

• Read more

VLT Momentum registers another buy signal. Only in the 1930s has a similar pattern of buy signals developed. Third buy led to big gains back then.

• Read more

Earnings momentum may appear to be slowing, but it is last year’s comparisons that were overstating the results.

• Read more

No doubt, “relief” was the primary component in April’s performance formula. Wall Street can now redirect the focus back to issues of domestic consequence….things like earnings, valuations, and economic growth.

• Read more

VLT Momentum, a long term technical measure, recorded buy signals on S&P 500 and DJIA. This is a very reliable indicator.

• Read more

An explanation of VLT Momentum (The Coppock Curve); what it is and how we use it.

• Read more