short-term momentum and how to profit from it

[waha]

How did you guys tackle this one? I stated that short-term momentum
is due to overreaction as well as underreaction, it is not dependable or exploitable. However, I remember the question asked how to profit from it.
I struggled with putting something extra there and was also thinking about
possibly doing a contrarian approach but finally decided to put down something like if one wants to profit from it, one could just ride the short-term momentum and have an exit strategy. I probably was just BSing and hoping to get some partial points.

[Bell]

I basically said that momentum vrs randomness. You know!! This phenomenom is an attack to the well known EMH theory.

It is due to: Undereaction and Representativeness heurestic.

To exploit:

I pretty much BS as well:

I said hennn:

If you've notice a short term pattern (say upwards), you can today, and short in the very near future to lock in aprofits.


You know, things like that!!

[namssa]

I just wrote that short term momentum was not dependable or exploitable for excess returns. I also noted that under reaction was as common as over reaction, which also supports the conclusion that there is no way to profit from this phenomenon.