What happens to top ranked momentum stocks | stockbee


What happens to top ranked momentum stocks

What happens when a stock gets ranked in top 50 by One year momentum

When a stock makes a big move ity can potentially double from that level OR it can get in to trouble and drop more than 40 to 50% from the high

I have been publishing this list since July 2013.

I have been publishing this list since July 2013.

Have a look at the stocks that made it to number 1 to 10 in it and see what happens to them in next 6 month after them make it to number one .

Majority of them go down 40 to 50%.

Similar thing happens to stocks ranked number one by 65 days  or 21 days. They go down 20 to 50% in next six month. And you can look at any popular list of ranked stocks like IBD50 or some copy cat lists like that and most will show this phenomenon. When a stock makes it to number one rank in IBD 50 you should put it on short watchlist. 

Very few stocks that make it to top momentum rank continue that move for longer periods.

If you understand this structural tendency of stocks ,  that is a good starting point for a short setup.

Rest is about developing a actionable set up around it. If you are smart you should be able to do it relatively easily.


Joel said...

Hey, I had a great time reading your website. Do you have an email address that I can contact you on? Thank you and hope to hear from you soon.


JHouston791 gmail.com

Pradeep Bonde said...

It is on the site in right hand panel