In the last post , we tested a momentum strategy using the Rate of Change indicator. Using ROC (12month), gave us pretty good results when testing it on the SPX index. Based on these results, I wondered if this strategy would work on a basket of securities.
Newton 's first law of motion states that An object at rest stays at rest and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force. Investors have been using this concept to buy and sell stocks for years. In this post, we'll look at a simple way to use momentum for investment purposes.
Despite the selloff during the last week of April, we are still invested. The S&P 500 is still above it's 10 month MA , and the S1TH is still above 65 %.
Journal has been updated as well.