Subject: Re: Momentum petering out?
looking at a 1 year chart of Nasdaq/S&P it seems to me momentum is petering out.
What does "momentum is petering out" mean?
Momentum is simply "The stock price now vs. a year ago."
If you are a momentum investor, you buy things that are highest YOY in favor of things that are lower YOY or even down YOY.
That's it. When/if things are not favorable, you sell and wait it out.
You don't need to try to predict or mind-read the market and other market participants. You don't need to fret about "a sign of everybody already being fully invested".
Just buy & sell according to what the stocks are doing, without trying to figure out WHY they are doing what they are doing.