rally of the crap stocks?

Last two weeks has all about the rally of high short interest, negative earnings revision, negative momentum stocks. Add value to that list.

It’s a bit of a weird market. Everything is correlated. I do hope it reverts back to normal soon.

Marc’s Cherrypicking value model is up over 9% since late August. Value has been out of style for awhile. For example, Marc’s model topped in January 2018.

If and when value rotates back into style, it should last awhile.

Dico, you seem to be a momentum investor so help me out here. I never quite understood how anyone who uses “momentum” can value a security. If a security indeed has an underlying value, why would it become a better buy when its value-price margin decreases?

Okay, let’s assume momentum investing actually does work. At what point do you sell your momentum stock?

https://www.bespokepremium.com/interactive/posts/think-big-blog/throw-it-all-out

I am seeing the same in this model: 50 under-covered Seeking Alpha Stocks
Up 14% since Aug-19.
https://www.portfolio123.com/app/r2g/summary?id=1580952


i use momentum, the way earnings are trending, and also sentiment factors as factors. and they all blew up the last two weeks.
the worst thing is I stopped using value because it hasn’t worked for the last XX years.

None of the models mentioned above–or my sim here in red–beat the S&P SmallCap Pure Value in blue.

diconoclastx is right. Definitely add value to the list for now.

-Jim