A momentum-focused fund that has gained favor among traders could be in for a turnaround, according to BTIG.
The iShares MSCI USA Momentum Factor ETF (MTUM) is trading about 26.5% above its 200-day moving average, said Jonathan Krinsky, chief market technician at the firm.
MTUM YTD mountain The ETF this year The fund tracks large- and mid-cap stocks that have shown relatively strong price momentum, according to iShares.
Market wisdom says that trading above the 200-day average indicates conviction and buying interest from investors.
That comes after the fund lagged the market last year, finishing just 7.5% higher while the S & P 500 surged more than 24%.
Persons:
Jonathan Krinsky, Krinsky, Eli Lilly —, —, Dow Jones
Organizations:
Meta, Nvidia, Amazon, Microsoft, Netflix, Morningstar, Tesla