Markets momentum stocks

Why September Is Ripe For A ‘Monster’ Momentum Rally, According To One Strategist

Hint: seasonality.

On Tuesday, Nomura's Charlie McElligott documented what, according to his models, is the worst 2-month run for consensus U.S. equities funds' "long Growth, short Value’" strategy "since the ‘great market-neutral unwind’ of 2016." But there was a "silver lining". Here's Charlie: This sets up VERY well (from an entry-point perspective) for a tactical ‘Long U.S. Equities Momentum Factor’ trade for the month of September—or, just ‘Short Momentum Shorts’ as this leg is what drives essentially all of the seasonal performance trend for Momentum in September. Fast forward to Wednesday, and in his latest missive, McElligott notes what we spent a ton of time documenting earlier this week: namely that for the foreseeable future, the risk-on trade depends on a weaker dollar. The greenback's relentless ascent took a breather this week on the heels of Donald Trump's most recent derogatory remarks about Fed policy and considering the stronger dollar has been at the heart of the carry unwind and is the proximate cause of EM pain, it's no wonder that some folks were relieved to see the Bloomberg dollar index fall for five consecutive sessions, the longest losing streak since F
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