I was chatting with my quant buddy Tony a week or so ago and he asked me what ‘MOMO’ meant, which kind of had me stumped. In my mind it was an abbreviation for ‘market momentum’ but obviously this doesn’t make any sense. I was trying to figure out where and how I had absorbed that term and couldn’t figure it out. Nevertheless I have used ‘momo’ for many years now without thinking about it, which goes to show that we all fall prey to intrinsic habits and more often than not aren’t even aware of it.
A fascinated topic in which I have been taking a deep interest over the past few years has been the dissection and tracking of market momentum in various market sectors. To that end I am primarily interested in answering the following four questions:
I promised you a comprehensive momo update and just like a Lannister the market mole always pays his debts. Except here at the lair you won’t have to wait almost two years for new episodes. Come rain or shine, I deliver daily and I’m known to spoil my intrepid subs in particular. That said, if the GOT producers get away with taking an 18 months break, all the power to them!
My lottery long position got stopped out this morning and before deciding my next course of action, or perhaps lack thereof, I thought it best to consult my momo charts, in an attempt to gain a clearer perspective devoid of the daily noise. Unfortunately however this effectively has accomplished the exact opposite as I walked away even more conflicted than before.