Momentum Flip

I have talked about the daily scan of stocks making 50% or more move in a month many times and how it tells you a lot about market. If you have been tracking the scan daily you would have noticed that for many weeks, most of the stocks appearing on this list have started their move from bottom of range or weakness. Buying breakout from weakness has worked. While in a roaring bull environment you will notice most of the stocks on the scan are at top of their range or making climax moves after long run ups.
You need a dynamic and simple indicator which alerts you to such market possibilities. This is one indicator which tells you a lot about market and if you study it over many years you will get very good read on market. Plus it reminds you everyday that there are opportunities for long side profit in most market environment.

Stocks up 50% or more in a month

AEHR,Aehr Test Systems
NRMX,Neurochem
POZN,Pozen Incorporated
SIGM,Sigma Designs Inc
SNTS,Santarus Inc
TAR,Telefonica De Argentina
WTHN,WiderThan Co Ltd

Wouldn't it be nice to know about these stocks before they make a 50% move. Here is a scan universe I use to find such candidates when they just start making the move using a momentum scan. The list below shows stock with high momentum for last one month. The list is generated using a simple rate of change scan. Next set of 50% movers should emerge from this set.

ACAD,Acadia Pharmaceuticals
ANAD,Anadigics Inc
BIVN,Bioenvision Inc
CBAK,China Bak Battery Inc
EPL,Energy Partners Ltd
FORD,Forward Industries Inc
GGR,Geoglobal Resources Inc
GKIS,Gold Kist Inc
ICOC,Ico Inc
IVII,Intervideo Inc
LYTS,Lsi Industries Inc
MCRS,Micros System Inc
NRMX,Neurochem
OLAB,OraLabs Holding Corp
RACK,Rackable Systems Inc
RMBS,Rambus Inc
SIGM,Sigma Designs Inc
SMP,Standard Motor Prods
SMSI,Smith Micro Software Inc
SNCR,Synchronoss Technologies Inc
SNTS,Santarus Inc
TAR,Telefonica De Argentina
VOLC,Volcano Corp
VPHM,Viropharma Inc
WTHN,WiderThan Co Ltd

See some of my old posts to understand how and why this works.