High-Volume Momentum Strategy Surpasses 166% Return as 64th-Ranked Stock Surges 42%

On July 31, 2025, The saw a trading volume of $1.79 billion, representing a 42.19% increase from the previous day and ranking 64th in volume among listed stocks. This surge highlights renewed institutional interest amid shifting liquidity dynamics in the market.

Recent market activity suggests a short-term focus on liquidity-driven momentum strategies. The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day has generated a 166.71% return from 2022 to the present. This outperforms the benchmark return of 29.18%, delivering an excess return of 137.53%. The success stems from capturing liquidity surges in high-volume stocks, such as those exhibiting strong institutional participation and rapid order flow execution.

Market participants increasingly prioritize liquidity concentration as a key driver of short-term price movements. The strategy’s effectiveness underscores the importance of aligning with current market structure, where rapid capital reallocation creates opportunities for momentum traders. However, evolving market conditions could alter the sustainability of such strategies as structural factors shift over time.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, generating an excess return of 137.53%. The strategy's success is attributed to its ability to capture momentum driven by high liquidity, as evidenced by the significant volume surges seen in stocks like VICI Properties and Eli Lilly.