Momentum Hasn't Been This Extreme Since The Peak Of The Dot.Com Bubble

Tyler Durden's picture

The last month or so has seen 'momentum' dramatically outperform the market as retail flows chase 'what is working'...

In fact this has very much been a year of momo...


But, as Bloomberg notes, U.S. stocks with the fastest-rising prices are showing the kind of strength they did in the 1990s, according to Jonathan Krinsky, chief market technician at MKM Partners LLC.

He cited this year’s swings in the MSCI USA Momentum and MSCI USA indexes in a report Sunday. The gap between them stands at 15 percent, a threshold that the momentum index only crossed on a full-year basis in 1999.

“Momentum is definitely stretched relative to the market, but there is no guarantee that it won’t become more stretched,” he wrote.

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Bigly's picture

-40 on Dow is not a correction. 

I cannot believe we have not had blood in the streets -40% correction by now.

Just look at the charts. Obvious manipulation now.

FreeShitter's picture

Murica cant afford a correction. Its going as high as CTRL-P takes it until CTRL-P stops working.

Bigly's picture

I guess I should be riding the wave. 

Hang ten....

Dead Canary's picture

I am a hard core Libertarian, Ron Paulite, sound money guy, but JESUS!

Even MY faith in silver is being tested. This madness CAN'T go on much longer.

People, the world has never seen such madness. This will end in fire and tears.

SeuMadruga's picture

Save your silver to melt it and cast some rounds to kill those filthy vampires !

Caloot's picture

11 trillion in monetary inflation in ten years.   Where's the price inflation?   Oh...Keep your eye on that dollar.  This is the correction...  

Freddie's picture

Are we missing something?   Is another factor the death of the petrodollar?   Zimbabwe and Venezuela and other like places had booming markest as the currency died?  Is the market seeing the petrodollar dying along with the House of Saud? 

Bigly's picture

Based on what China and Russia are doing in recent headlines, I would say the petrodollar is on its way out. But there are some experts here who can weigh in. I am not one of them.

Sy Kloine Bee's picture

If (or maybe when) the dollar is no longer the world's reserve currency, there will be no real guarantor for Israeli bonds; their sovereigns are backed by the full faith and credit of Uncle Sam, just like your T-Bills.  So every attack on the petrodollar is a real threat to Israel. Something to think about.

Caloot's picture

That's what I'm beginning to think.

Late onset ADHD's picture

waiting for elasticity on acid...

Late onset ADHD's picture

ride ride ride, the wild surf...

razorthin's picture

Someone had better un-comment out that correction sub-routine before we overflow the stack.