Why Investors Should Avoid Momentum Stocks

The rally continued on Monday, and though the market internals were not quite as strong, the McClellan Oscillator rose further to +81, but it is still below the early April high at +88. The Dow Transportation Average once again led the Industrials as it is approaching the all-time highs. The S&P 500's five-day winning streak is the longest since last October. The S&P futures have had nice gains since last week but their volume has been declining over the past three days, consistent with a loss o...