Does Hottrend normalize for overall market activity?
Yes. Individual stocks may be trading at elevated levels due to a rise in overall market activity. For example, normally when the Federal Reserve lowers interest rates, many stocks trade up. Hottrend adjusts for overall market activity by ranking stocks based on their own historical profiles as well as comparing them to every other stock on the exchange to find those that are behaving “most abnormally.” This helps eliminate market bias.
