36 stock with momentum for Friday | stockbee

11/20/2009

36 stock with momentum for Friday

The list of top momentum stocks is dynamic, it changes daily as stocks relative ranking changes. When market undergoes correction there are often rapid changes in the list. Momentum favorites reverse or undergo correction and new stocks enter momentum phase. Many stocks will not reverse instead they will go in sideways patterns or form a range. When the selling in general market subsides then the stocks bounce back. That is when you get best opportunities in momentum stocks.
If you are primarily looking to buy a pullback, then one of the variation you can use is to use a 6 month momentum list with one month offset. Which means you look at stocks which were ranked top 2 or 3% a month ago by 6 month momentum. To do that in Telechart you can use a simple scan like (C21 / AVGC126.21) and then take top 2 or 3% ranked stocks by it. What it will give you is stocks which were momentum favorite 21 days ago. Some of them might have reversed , but many of them will be in orderly pullback. They are ideal buy candidates on breakout.
Same scan can be used to find shorts. If you look at the bottom ranked stocks in the scan, they are the stocks which were weakest stocks in last one month and some of them might be having small counter trend rallies currently which can be good low risk short entry points.

If you understand how momentum works and the core concept behind momentum, then you can slice and dice it in many ways.
Top stocks by 6 month momentum:
CAAS
CATM
CYD
DAN
EWBC
FSYS
GY
HEAT
HGSI
HL
HOLI
IO
KFN
KGN
LNY
MED
NANO
NLST
OPTT
PAP
REV
RINO
RURL
SALM
SCSS
SMTL
SNIC
SVM
THM
TMI
TRGT
TSTC
UFS
USEG
XRTX
ZOOM

6 comments:

Kp said...

dear pradeep.
i had read a lot about momentum at your blog,
i want to learn how to tap momentum.
can u pls guide me how to learn more about same.
i m trading indian index futures and mainly writing indian index(nifty) options.

i would be happy if u can suggest any good book about momentum.

thanx.
-kalpen

Pradeep Bonde said...

There are no books which exclusively deal with momentum.

Kp said...

thanx very much 4 ur quick reply.

if no books r there,
than can u pls guide me how to tap momentum and how learn more about it?

thanx.

Pradeep Bonde said...

Research academic articles. Research the internet. Use your own understanding of it.

badar_basim said...

Mr kalpen,

momentum is a very broad topic, much like investing is, i'd consider it a sub-genre of investing.

there are a great many definitions for momentum.

for me, if you trade based on momentum, you are probably talking about a swing trade or a day trade where you take advantage of a minor pause and jump in as soon as there is unusual volume or price action.

the trick to make a large fortune is to "get in" as soon as the trend (momentum) starts. or to short as soon as the trend ends.

if you are new to investing might i suggest reading stockbees old entries.


regards

Kp said...

thanx mr.pradeep & thanx mr. basim