Lacking red hot momentum | stockbee

4/10/2007

Lacking red hot momentum

Market Monitor

Total 4% plus bullish breakouts=111
Total 4% plus bearish breakouts= 48
65 day bullish/bearish ratio= 964/187
Stocks up 50% or more in a month=19
Stocks up 25% or more in a month=154
Number of stocks with 100% plus move = 397
Number of stocks up 200% or more = 89
4% plus signals for 100plus universe=21
4% plus signals for 200plus universe=4

This was the market few days before the major one day dip in February. Notice the 50% plus was at 19 and 25% plus in month was at 154. That was red hot momentum. The 65 day indicator was below 200 indicating possible turn around.
Since then the market has gone up but on individual stocks the momentum has been lukewarm as you can see in below market monitor figures.

Market Monitor

Total 4% plus bullish breakouts=134
Total 4% plus bearish breakouts= 43
65 day bullish/bearish ratio= 920/264
Stocks up 50% or more in a month=8
Stocks up 25% or more in a month=72
Number of stocks with 100% plus move = 378
Number of stocks up 200% or more = 80
4% plus signals for 100plus universe=21
4% plus signals for 200plus universe=7

This lack of momentum is making the moves on individual stocks smaller and few of the 100% plus stocks have really gone up the way they normally do. You get best results for strategy like 100% plus after a market correction of 10 days plus.

Selected stocks breaking out from 100% plus universe:

AIXG,Aixtron Aktiengesellschaft Ads (Google  Yahoo  Earnings  Chart
AMSC,American Superconductor (Google  Yahoo  Earnings  Chart
ASTI,Ascent Solar Technologies Inc (Google  Yahoo  Earnings  Chart
BPA,Biosante Pharmaceuticals (Google  Yahoo  Earnings  Chart
CVNS,Covansys Corp (Google  Yahoo  Earnings  Chart
CYTR,Cytrx Corporation (Google  Yahoo  Earnings  Chart
EMS,Emergency Medical Services L.P. (Google  Yahoo  Earnings  Chart
FSLR,First Solar Inc (Google  Yahoo  Earnings  Chart
GMO,Idaho General Mines Inc (Google  Yahoo  Earnings  Chart
GTI,Graftech Intl Ltd (Google  Yahoo  Earnings  Chart
INCY,Incyte Corp (Google  Yahoo  Earnings  Chart
NYNY,Empire Resorts Inc (Google  Yahoo  Earnings  Chart
ROCM,Rochester Medical Corp (Google  Yahoo  Earnings  Chart
SLP,Simulations Plus Inc (Google  Yahoo  Earnings  Chart
TWTI,Third Wave Tech (Google  Yahoo  Earnings  Chart
TWW,Terremark Worldwide Inc (Google  Yahoo  Earnings  Chart


Possible long candidates based on 65 days price growth or being in top 20 in terms of overall 260 days growth or recently crossing 100% plus mark.

CVNS,Covansys Corp (Google  Yahoo  Earnings  Chart
CYTR,Cytrx Corporation (Google  Yahoo  Earnings  Chart
GTI,Graftech Intl Ltd (Google  Yahoo  Earnings  Chart
NYNY,Empire Resorts Inc (Google  Yahoo  Earnings  Chart
TWW,Terremark Worldwide Inc (Google  Yahoo  Earnings  Chart

3 comments:

JS said...

You now have 8 stocks up 50% or more in 1 month. Per your earlier observation, if this # gets down to 3 the market is due for a rally. But you seem to feel the market is tired and is due for a decline. Is my understanding correct?

65Trader said...

I agree market is looking due for a correction, but who's going to sell into the favorable seasonality and IRA contribution week?

Pradeep Bonde said...

Yes because the number is stuck at 8 to 10 for long time so on individual stocks the moves are of lesser magnitude. What it means is stocks are breaking out but not going up faster post breakout.
The indicator is not perfect, it just indicates possible reversal zones on long or short side.