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Momentum stocks roar back to life

Momentum stocks, which had lost their mojo in recent months, are revving up again. The resurgence in these once-hot names is a big reason why the Nasdaq composite enters today’s trading session just 3.1% below its all-time record close of 5048.62 back during the dot-com stock bubble days in March 2000.AP WALL STREET F USA NY

“Many of the 2013 momentum stocks that had really gotten beaten down over the last six to nine months have roared back to life,” Bespoke Investment Group told clients in a report. Upbeat earnings and a resurgent U.S. economy are providing a lift. The latest rally is a sign that risk appetite is on the rise as the broader U.S. market erases an early-year dive of 5% to make new highs Friday.

Two momentum stocks that fit the bill as hot stocks that are in big-time rebound mode include video streaming play Netflix, which is making a run at a new record high, and online retailer, which is also making a run again at $400 a share and a record high, according to Bespoke Investment Group.