Archive Category: Infinite Momentum Alert Archive

Are we on the verge of a massive, bullish breakout in small-cap stocks? Two data points point to the answer being, yes! First, a piece of analysis from Bespoke Investment Group …

I noted last week how earnings season was spurring big price moves in some of our holdings…

First off, a quick interim update on the performance of our portfolios, now at the midway point of our four-week holding period… The “All Markets” portfolio is up about 1%, and the “Tech Titans” portfolio has gained about 2%. Meanwhile, the blended average of the four passive benchmarks we track is down about 0.25%.

Well, we have another four-week holding period under our belts… The past month was relatively uneventful, outside of the merger between ANSYS, Inc. (ANSS) and Synopsys Inc. (SNPS). I’ll cover how that corporate action affected the ANSS position we held through it, and otherwise keep today’s performance review short and sweet — “sweet,” it is, as you’ll see below…

With a name like Infinite Momentum Alert, one might assume (at least at first) that our strategy focuses exclusively on … well, momentum. With investing, momentum is defined as the tendency for strong stocks to remain strong for some time. “An object in motion tends to stay in motion,” to paraphrase Isaac Newton. Momentum seems pretty obvious at first — but momentum-based strategies are often maligned and misunderstood as “only caring about price action,” while giving little regard to the fundamentals of the company underlying the shares.