Market Overview - The U.S. equity markets started 2026 strongly, achieving two consecutive days of record highs driven by blue-chip tech firms and a rise in energy stocks [1] - Technology stocks benefited from renewed enthusiasm for AI and its growth potential, while the energy sector was optimistic about crude oil price stability following a U.S. attack on Venezuela [1] Investment Strategies - Investors are optimistic that rebuilding Venezuela's oil infrastructure will enhance the industry and improve supply chain dynamics without escalating geopolitical conflicts [2] - Momentum investing is highlighted as a successful strategy, particularly in times when value or growth investing may not yield desired profits [2][3] - The principle of momentum investing is to "buy high and sell higher," capitalizing on established trends that are likely to continue due to existing momentum [3] Momentum Stock Screening - A screening strategy has been developed to identify stocks with strong momentum, focusing on long-term price increases and short-term pullbacks [4] - The screening parameters include selecting the top 50 stocks based on a 52-week price change, then identifying the 10 worst performers over the last week to find potential entry points [5][6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized, as they have a history of outperforming the market [7] Selected Stocks - General Motors (GM) has seen a 58.1% increase in the past year but experienced a 0.2% decline last week, with a Momentum Score of B [10] - NVIDIA (NVDA) has risen 33.6% over the past year but also dipped 0.2% last week, holding a Momentum Score of A [11] - Mercury General (MCY) has increased by 36% in the last year but fell 6.2% last week, with a Momentum Score of B [13]
Buy 3 Momentum Anomaly Stocks as Markets Hit Consecutive Record Highs