momentum

["Dtrader" <chesler@xxxxxxxxxxxxxxxx>]

RE: MOMENTUM 

I saw this post to the Omega list today. (copy below)  

Does this say that momentum does not lead random walk and therefore price
is a random walk.?

If price sometimes is and sometime isn't, then isn't it also incorrect to
say that momentum doesn't lead "squat" unless you can define "squat" in
percentage terms.?

Thanks
Dtrader

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As to why some refer to it as a leading indicator,  I guess it's because 
taking the first derivative (momentum) of a sine wave creates a cosine, 
which appears to lead the sine perfectly by 1/4 wavelength.  However, that 
is a special case where it happens to lead well.  If you apply this test to

the more general case of a random walk, momentum doesn't lead squat.  Since

the market sometimes trends and sometimes not, then sometimes it may appear

to lead and sometimes not.  I don't find that view very useful.
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