Magnificent Seven and momentum
How long can it last?
High momentum stocks are securities that exhibit strong, continuous price movements in a particular direction, typically upward, over a short to medium-term period. These stocks are characterized by several key features:
Strong directional movement: High momentum stocks show a consistent upward trend in price over a period of weeks or months.
Above-average trading volume: These stocks experience higher than usual trading activity, indicating increased investor interest and liquidity.
Increased volatility: Momentum stocks often display higher price fluctuations, which can provide opportunities for short-term profits.
Positive investor sentiment: There is generally optimistic market sentiment surrounding these stocks, driving continued buying pressure.
Rapid price increases: High momentum stocks tend to gain significantly in value within a relatively short timeframe.
Potential for high returns: If correctly identified, these stocks can offer substantial profits to investors who capitalize on …