Momentum studies:

• Stocks exhibiting 3-6-12 month momentum are likely to outperform in subsequent 3-6-12 month period.
• 1 month momentum tends to lead to reversal.
• Longer term momentum of 2-3 years also tend to lead to reversal.
• Momentum effect is more pronounced for small capitalization stocks.
• Studies also show sector momentum works in similar manner to stock momentum.