Momentum Stocks That Attract Investors' Attention

Investor Interest Rising: Momentum Stocks

Markets have recently begun to view the fluctuations as a "healthy correction." The record length of the U.S. government shutdown and the sell-off in large technology stocks have shaped investors' expectations, while analysts' comments suggest that the pullback is not a deterioration but rather a rebalancing of valuations.

Noteworthy Developments in AI Stocks

After significant corrections in AI stocks, the market has entered a period where excessive optimism has been tempered. However, this process indicates that risk appetite has not completely evaporated, but rather transitioned to a more selective upward phase. Recent developments in the U.S., particularly with the Trump administration taking steps towards reopening the government, have contributed to rising hopes of alleviating political uncertainties.

Global Liquidity Conditions and Stock Prices

Additionally, expectations that the Fed will end its balance sheet reduction program by the end of the year raise the possibility of a relaxation in global liquidity conditions. This situation creates a foundation that keeps momentum alive in the stock markets.

Momentum Stocks and Investor Strategies

In this environment of rising investor interest, stocks backed by high trading volumes and strengthened technical indicators are coming to the forefront again. Particularly, the Relative Strength Index (RSI) and cash flow index being above threshold values indicates that price momentum is sustained. During this period, stocks that have maintained an average trading volume over the last three months above the S&P 500 average and offer higher returns compared to sector peers are positively differentiating in the market.

For investors, these types of stocks typically attract attention during periods when short-term momentum gains strength and price movements are supported by volume. In this context, stocks filtered starting from the largest market capitalization companies are entering investors' radars.