The indexes may not show it, but below the surface there have been pockets of very good momentum in last few weeks. If you were trading momentum, it was good time to catch some big swing trades.
The easy picking has been done and now in the short run I am cautious. I have taken profit on most open positions and kept some part open.
If the rally has further legs then new stocks will take up momentum leadership. In the short run I am focusing on a different momentum method which looks at stocks which were top ranked by momentum a month ago but currently in pullback.
Top ranked stock by six month momentum: