Momentum Analysis of DJI Stocks Near Sharp Rise, Crash, and Consolidation

Document Type

Article

Publication Date

3-15-2004

Department

Physics and Astronomy

School

Mathematics and Natural Sciences

Abstract

Using a momentum trading approach, Dow Jones Industrial stocks are analyzed on an yearly basis for trade execution during the rise, crash, and consolidation period (1999-2001) of the stock market. While the anomalous trend in some of the volatile sectors are seen (i.e., the Microsoft in year 2000), the probability of high return is considerably high with appropriate choices of trading threshold for short-to-long-term momentum trading. (C) 2003 Published by Elsevier B.V.

Publication Title

Physica A: Statistical Mechanics and Its Applications

Volume

334

Issue

3-4

First Page

524

Last Page

530

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