While the picture still looks muddy the point of inflection, the moment of truth, seems to be very close. It will soon be clear if the 1 year EMA of the new lows (depicted in red in charts above) will cross over the 1 year EMA of the new highs (depicted in green in charts above) invalidating our hypothesis that the previous cross over was a signal to sell short equities. Please click here to continue reading.
Most momentum traders, or trend-followers, categorize themselves as long, medium, or short, term trend followers and approach markets with a view to predict and capture long/medium/short term trends. Please click here to continue reading.