Momentum Precedes Price (Underperformance/Outperformance)

Hi Matthew,

Through our studies, we know that momentum can be a leading indicator - and that it can precede price.

In the context of RRGs - in analyzing the direction of the tails and the closeness of the data points on that tail - are we essentially trying to assess increasing momentum (or the lack of) - which ultimately makes it more likely it rotates into the next quadrant?

Also, I know you mentioned that through your studies - buying in the LAGGING quadrant for a rotation into the IMPROVING quadrant showed good results (underperform to outperform). Does that concept essentially hold true in reverse, if you were looking to short securities?

Thank you