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The most recent annual report – While reading the annual report, you'll want to pay special attention to the letter from the Chairman, CEO, and sometimes CFO or other high-ranking officers to see how they view the business. Not all annual reports are created equally. Generally, the best in the business is considered to be the one written by Warren Buffett at Berkshire Hathaway, which you can download from free on the holding company's corporate site.


Still, other momentum strategies involve cross-asset analysis. For example, some equity traders closely watch the Treasury yield curve and use it as a momentum signal for equity entries and exits. A 10-year Treasury yield above the two-year yield generally is a buy signal, whereas a two-year yield trading above the 10-year is a sell signal. Notably, the two-year versus 10-year Treasury yields tend to be a strong predictor of recessions, and also has implications for stock markets.

Barchart calculates a custom index (the Barchart Market Momentum Index) which is used as an indicator of overall change in the markets. The index reflects the movement of more established stocks: those with SEC filings, with 6 months of trading activity, and with price above $2.00. A high value means the market is moving up, where as a negative value implies the market is down today.