The Return Of High Momentum by Perry J. Kaufman
There’s no right or wrong way to look at the market. The reality is that with so many choices, you can get creative with your analysis techniques. Here’s a look at how to combine two related indexes and use opposite strategies for each.
A long, long time ago, back in the 1990s, we had a method called high-momentum trading. It was a short-term strategy that took advantage of over-bought and oversold conditions—not by fading them (selling overbought and buying oversold values), but by buying overbought and selling oversold situations. It seems contrary to the concept of being overbought or oversold, but it’s all about timing ...