31 stocks with momentum | stockbee

12/01/2009

31 stocks with momentum

CAAS: China Automative Systems Inc

As I said yesterday keep an eye on the Chinese stocks in this list. One of the highlighted stock was CAAS out of the 7 stocks on the list. The stock went as high as 20.63 yesterday before closing at 19.35. This was my existing position bought before the breakout.
If you are swing trader and looking for explosive moves like CAAS, CYD, SEED, WX, RINO, TSL, etc. then you should focus on stock with momentum. The top 2 to 3% stock with momentum offers very good opportunities for catching such explosive moves.
AIXG
APWR
BONT
CAAS: current open position (partial profits taken yesterday)
CYD: current open position
CYTX
DAN
DSW: current open position
EWBC
GOL
GY
HGSI
HL
HPJ
IO
KFN
KGN
NANO: closed position
NLST: closed position
REV
RINO: open position
RVI
SEED
SMTL
SNIC
SVM
TSL: open position
TSTC: watch this for possible breakout
UFS
USEG
WX

If you want to profit from the market study momentum. Out of all the factors affecting stock price in short run, it is the best predictive factor.

Quantitative Strategies for Achieving Alpha (McGraw-Hill Finance & Investing)





In this book Richard Tortoriello sets out find empirical drivers for stock market returns. This is a new book published last year. The author tests 1200 strategies on stocks to determine the major fundamental and market based drivers for future stock market returns.After such analysis he presents strategies that consistently outperform the market.

The author tests 7 basic categories of stocks factors:
  1. Profitability
  2. Valuation
  3. Cash flow
  4. Growth
  5. Capital allocation
  6. Price momentum
  7. Red Flags ( risk factors)

Detailed quantitative tests for each of the factors are presented in the book. As the author works for S&P, he has access to the best database on stocks and he presents his findings for multiple factors within each of the above seven categories. The testing shows that the top single factor strategy for achieving excess return is price momentum calculated using 28/16 relative strength. The best strategy using two combined factor for excess return is price momentum plus nearness 52 week high.

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