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

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.