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!
Yesterday’s session is a textbook example of how the best laid plans can fail. It’s also a welcome reminder as to why I don’t bother to count waves or rely on magic market cycle theories. If you skip back one post then you’ll see the binary setups I presented which, given the information at the time, seemed perfectly reasonable. Shortly after reality kicked in and swiftly tossed a crate of grenades into my nefarious scheme.