My guess is that this market activity has more to do with momentum trading, in this case to the downside, than anything else.
"It's very much driven by a good story and fast money and momentum trading rather than a belief among the world's institutional investors or real-money investors that the weaker yen is sustainable, " Mr. Dehn said.
There's plenty of evidence that stock prices are slow to react to news, creating the potential for making money from momentum trading, says Tobias Moskowitz, a finance professor at the University of Chicago who studies market anomalies.
According to an analysis performed by advanced analytics consulting firm Emerald Logic, factoring in WiseWindow data on top of a simple momentum trading program boosted returns by over 30% on an annualized basis for GM, Ford, and Southwest Airlines.
Further, individually rational momentum-trading strategies can exploit and even exacerbate this trend, potentially pushing equity prices past levels justified by the new fundamentals.
Stocks are trading higher on pure technical momentum, not because of cheap fundamentals.
The bulls still have some upside near-term technical momentum on their side to start the new trading week.
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Profit centers like trading, underwriting and investment banking gather momentum.
With former Fed chairman Paul Volcker leading the charge for reform on Wall Street, the special tax on banks and the drive to separate trading and banking takes on a mightier momentum.
Flash forward 8 months and EXR is trading 36% higher and looking more like a momentum stock.
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First of all, the rules for using the RSI are not meant to be a trading system, as most traders are aware that momentum-based indicators are very unreliable in strongly trending markets.
The markets managed to pick up some momentum today, despite a mixed bag of economic data and light trading volume.
With Fastenal showing positive momentum and topping expectations it might surprise some that the stock is actually trading 3% lower on heavy volume, especially considering the rest of the market is roaring higher.
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The stock market continues to have strong technical momentum (what I call MOJO) as 2013 begins its second full week of trading.
The U.S. dollar index is trading lower again Wednesday morning, as the bears are gaining fresh downside technical momentum.
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The bulls have near-term upside technical momentum as the market produced a technically bullish monthly high close on Tuesday, the last trading day of the month.
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The bulls have near-term upside technical momentum as the market on Tuesday produced a technically bullish monthly high close on the last trading day of the month.
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The U.S. dollar index is trading higher Tuesday morning as the greenback bulls have regained some upside near-term technical momentum.
Meantime, crude oil futures prices are trading firmer Friday morning, as crude oil bulls have gained a bit of upside technical momentum this week.
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