Chart of the Day - Tuesday, September 10th, 2019

Today’s Chart of the Day was shared on Twitter by Sheldon McIntyre (@hertcapital). It's a ratio chart showing the performance of the Momentum Factor ETF, $MTUM versus the Value Factor ETF, $VLUE. Over the past few days, there has been a sharp rotation out of Momentum stocks and into Value stocks. Sheldon points out that this has been the largest three-day percentage drop for Momentum relative to Value since 2013. It's important to note that Momentum has significantly outperformed Value for years now. However, if this ratio fails to bounce soon, it could signal the beginning of a more significant rotation away from Momentum and into Value. We take a closer look at this development in our most recent report "Factor Battle."