Momentum Last Seen in 2000 Puts U.S. Stock Party at Risk
U.S. stocks with the most price momentum are set up for a setback after a year when “winners won while losers struggled,” Jonathan Krinsky, Bay Crest Partners LLC’s chief market technician, wrote in a report Sunday. Krinsky cited the performance of an index from Morgan Stanley that tracks the fastest-rising stocks in the Russell 3000 Index. The U.S. Momentum Long gauge surpassed its 200-day moving average by as much as 40% in December, according to data compiled by Bloomberg. The index hadn’t been so far above the average, an indicator of price trends, since March 2000.