Howie's Momentum Lists - Time To Do Something With All This Unique Data...and Keeping it Simple Is Best

Good morning…

I am coming out of the post adrenaline funk/fog of my cycling adventure which feels good.

Two back to back days of pitches and catch up with the Social Leverage Phoenix team has been good for the brain and soul.

Also, a few times a year the markets get interesting to me and that shakes me into focus. That is when fear starts to rise (happening now), and the markets start to act like a big break may happening.

I am seeing lot’s of ‘great depression’ themed tweets because of the data (technical, economic and political). There is always some truth to the fear if you can read it correctly. Keep in mind, data has a way of being tortured when the markets act weak (or bubbly) and fear (or greed) rises..those clicks baby!

While I was away I asked Riley (he works at Social Leverage) to work on a small project for me that I have been wanting to put out in the wild. Riley had a long run at Stocktwits working on the community side and writing the Daily Rip. He started a newsletter called Popularity and Price recently focused on data he is working with. The beginning idea was to put together a list of the best and worst price stocks based on relative price strength and rank them based on how many followers they had on Stocktwits.

The simple gist of how I like to think about price relative strength and popularity (social interest/strength) is the following:

In uptrending markets the least followed stocks with the highest relative strength are most interesting to me.

In downtrending markets, the most followed stocks with the weakest price relative strength are most interesting to me

I am going to share this daily (sign up for Riley’s email) and continue to add layers of ideations and social data to this with the help of my partner Matt who spent the previous part of his career building and running the data teams at Thirdpoint (Dan Loeb) and Worldquant one of the world’s largest quant funds. You are welcome to hit me up with ideas to add that might make our simple data sets more interesting. On my Momentum Monday’s show and weekly post/email I will outline a few of my fave ideas from the lists and data.

A couple of things you will notice from today’s list. First, more red than green as new 52 week lows outpace 52 week highs. The second is how we rank the stocks. Once you scan it for a week or two, you will get the feel and certain stocks and sectors and patterns will start to emerge.

Here is the list from yesterday. Have at it.