Momentum works as a stock-picking strategy according to this great piece of research from Kenneth French, a professor of finance at Dartmouth College. The research`s conclusion is that past performance looks like a forerunner of future performance in US stocks through history.
Stocks that have done well, on average, continue to do well. That`s a provocative thought, but this research is pretty resolute.
Read the full story here: http://www.bloomberg.com/news/2010-06-23/momentum-works-as-u-s-stock-picking-strategy-history-shows-chart-of-day.html
I have a small long position on the S&P 500 Futures. I am only playing a bounce so I am looking forward to close this trade on the first sign of weakness.
Have a great trading day.
