It is a market making new high after a shakeout. Yesterday the action was focused on DJ30 making new high. That has the media going gaga.
Below the surface big moves are rare. it is fairly muted action with number of stocks making 50% moves in a month at 8 and the stock up 25% in month at 76. That is by no stretch of imagination in red hot market compared to historical figures on same readings at this juncture in rally.
The focus has to be on finding individual stock setups that have explosive power. You have to be more selective in picking the stocks.
Some of the good recent swing moves were :
LNKD had a momentum breakout above threshold of 105% plus around 118. Since then it has been going up and had big breakouts post earnings.
HIMX is a low priced stock. It had a momentum breakout with momentum reading going over 105% around 2 dollar. Later it setup for number of swings. The recent swing started around 3 and in 3 days the stock went as high as 4.79 before reversing.
SGMO is another recent good swing trade candidate making 15% move in 4 days.
With the market making new high there tends to be excitement and often investors rush in to buy. But in this game unless you have a well defined method it is difficult for someone with very little knowledge and skill to start expecting to make money.
If you are interested in investment game , you need to build long term skills. For that you need to understand the language of setups and focus on setup selection. That kind of approach requires willingness to spend 6 month to year or more to work on methods and perfect them.
It requires willingness to invest in some sort of software for scanning for stocks. It requires setting up scans, developing entry and exit strategies, and risk management.
Absent that many who rush to invest at these levels will fall prey to greed and emotions.
Below the surface big moves are rare. it is fairly muted action with number of stocks making 50% moves in a month at 8 and the stock up 25% in month at 76. That is by no stretch of imagination in red hot market compared to historical figures on same readings at this juncture in rally.
The focus has to be on finding individual stock setups that have explosive power. You have to be more selective in picking the stocks.
Some of the good recent swing moves were :
LNKD had a momentum breakout above threshold of 105% plus around 118. Since then it has been going up and had big breakouts post earnings.
HIMX is a low priced stock. It had a momentum breakout with momentum reading going over 105% around 2 dollar. Later it setup for number of swings. The recent swing started around 3 and in 3 days the stock went as high as 4.79 before reversing.
SGMO is another recent good swing trade candidate making 15% move in 4 days.
With the market making new high there tends to be excitement and often investors rush in to buy. But in this game unless you have a well defined method it is difficult for someone with very little knowledge and skill to start expecting to make money.
If you are interested in investment game , you need to build long term skills. For that you need to understand the language of setups and focus on setup selection. That kind of approach requires willingness to spend 6 month to year or more to work on methods and perfect them.
It requires willingness to invest in some sort of software for scanning for stocks. It requires setting up scans, developing entry and exit strategies, and risk management.
Absent that many who rush to invest at these levels will fall prey to greed and emotions.
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