Over the years, when the market has gotten really wacky, tense and emotional, I have tended to always check in with the king of momentum investing: William O’Neil — or at least his organization, which includes Investors Business Daily.
I’ve actually never talked to O’Neil, but I’ve often been surprised to hear they were long gone from (or certainly cautious on) some of the biggest momentum names when the market — or at least a cluster of names — has appeared to have gotten out of control.
That’s when companies go from being just companies to being stocks.
With that in mind, what’s the current state of momentum?
Depends when you ask.
“The first thing we always look at is the direction of the market, and it’s unclear at this point.” Chris Gessel, executive editor of IBD, has worked with O’Neil for 15 years and serves as the front man to people like me.
We were talking late Tuesday morning — and at that point he was saying:Page 1 of 4 | Next Page