We Can Beat This Bullish Momentum ETF

It's all about one motto: "Buy high, sell higher." Published By Money & Markets, LLC. March 11, 2024 Published By Money & Markets, LLC. March 11, 2024 [Turn Your Images On] Editor's Note: We're closing the doors on Adam's latest "Money Code" offer today, but there's still time to get in before he releases his next trade at 2 p.m. ET[. Click here to see how.]( [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( We Can Beat This Bullish Momentum ETF Money & Markets Daily, The last five years have been wild but overall bullish for investors. In 2018, the S&P 500 was lingering around 2,750 points. By the following year, the market was in freefall as the world navigated shutdowns due to the COVID-19 pandemic. Fast forward to today, and the S&P 500 has almost doubled since 2018 and is riding a new all-time high — above 5,100 points. [Turn Your Images On] The momentum of the stock market is clearly bullish, and more investors are looking to ride the rally to even bigger gains. But what's the best way to do that? Today, I'm focused on momentum — one of the six factors of Adam O’Dell’s Green Zone Power Ratings system. I'll break down what this factor means in the stock market and run a momentum-based exchange-traded fund (ETF) through the system to see how it rates overall. --------------------------------------------------------------- [Turn Your Images On]( [AI Predicts No. 1 Stock to Own]( New AI-powered stock rating system — that isolates stocks with the highest probability of producing the biggest gains — just released details on the top-rated stocks... [Details here…]( --------------------------------------------------------------- Momentum: Buy High, Sell Higher We’ve all heard of buying the dip. This is when you buy a stock at its low point with hopes of significant returns when the stock rebounds. The problem is you never really know when a stock hits that low point. It could trade at what you perceive as the low and then continue sinking from there. That's why we focus on Adam’s Momentum Principle. This means buying a stock that is already moving up with the idea that it will continue its momentum even higher. Trading momentum is one of the best ways for investors to make money. Here’s why: - Momentum has a successful track record that stretches more than 200 years. - Momentum provides stronger market-beating returns than all other strategies. - Momentum works on all types of investments, not just stocks. Those are the main reasons why momentum is a key component of Adam’s six-factor Green Zone Power Ratings system. Without getting deep in the weeds, momentum uses three sub-factors: - DMI — The Directional Movement Index, or DMI, shows the direction the price of a stock is moving. - Up/Down Volume — This is a ratio that takes the stock’s trading volume on days when it’s up and divides it by the volume traded on days when it closes down. - Trailing Returns — This shows how a stock performed on a historical basis. It looks back at a stock’s annualized return over a specific period of time. These three sub-factors combine to give a stock an overall score on momentum. But how do momentum stocks rate overall on Adam’s system? Momentum ETF Shows Strength on Our System To test how momentum stocks rate overall, I did what we at Money & Markets call an ETF X-ray. I used the iShares MSCI USA Momentum Factor ETF (NYSE: MTUM), which tracks the performance of large- and mid-cap U.S. stocks with higher price momentum. Taking all 127 stocks in the ETF, I get the average of the overall and six individual factors. MTUM Earns 70 Overall [Turn Your Images On] Overall, the stocks within MTUM earns an average “Bullish” 70 out of 100 on Adam’s Green Zone Power Ratings system. We expect stocks in this category to outperform the broader market by 2X over the next 12 months. Conventional wisdom should tell you that MTUM is a good investment for your portfolio, but here’s something that should stand out to you: Of the 127 stocks in the ETF, 81 of them rated 70 or better. That means single stocks are outperforming the ETF — not to mention the 46 stocks that rate lower than 70, potentially dragging the fund's performance down. MTUM gives you good exposure to momentum stocks, but there’s a better way to capitalize on the factor. Infinite Momentum Alert Finds the Best of the Best ETFs get you into a specific industry, theme or individual investing factor, such as momentum. But being more selective in the stock market gives you a greater opportunity at true market-crushing gains. This is where Adam’s [Infinite Momentum strategy]( comes into focus. It’s a purely systematic approach that finds the 10 highest-quality stocks with momentum that are trading at a fair value every four weeks to maximize your gains. It’s a simple strategy that has already produced double-digit gains on multiple positions… in a matter of months. Adam recently “refreshed” the Infinite Momentum Alert model portfolio, so now is the perfect time to get in. [Click here to see how you can join .]( Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On] Fewer Jobs and More Bad News for Workers At first glance, the latest unemployment report seemed to show a strong economy with the addition of 275,000 new jobs. That was better than the 198,000 jobs economists had expected. However, revisions for January and December lowered the number of jobs created in those months by 167,000. Factoring that in, the economy has fewer jobs than expected. That's bad news for job seekers. This was confirmed by the unemployment rate, which ticked up 0.2% to 3.9%. All in all, the data points to a tough job market. It also looks tough for those with jobs. Paycheck growth isn't keeping up with inflation. The chart below shows the year-over-year change in the average weekly paycheck calculated from the official data. February's small increase didn't break the downtrend. Combined with an uptrend in inflation that we've seen in the past few months, the average worker continues to fall behind. — Mike Carr, Chief Market Technician, Money & Markets [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [INVEST IN THE FINAL FRONTIER? 1 SPACE STOCK TO WATCH, 1 TO AVOID]( - [THE TRUTH ABOUT INVESTING IN ELECTION YEARS]( - [FIND “HOT HAND” STOCKS TO BEAT THE MARKET]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. 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Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](