11/13/2006

Where is the strength

If you follow a momentum based stock selection strategy, you will always be looking for opportunities in the top momentum plays. If you can design a system that gets you in to few of the momentum stocks, you are ahead of the market. There are many ways to look at calculating momentum. Looking at weekly, monthly or yearly growth is one. The better approach should be to find the faster moving stocks sufficiently early and focus on few.

If you can not make money out of these kind of stocks, then there is some serious flaw in what you are doing, because they are the fastest moving stock for given period of time. They offer multiple opportunities for entry during the course of their move up. One approach to trading it is by buying a weighted basket of such stocks and adjusting it when the momentum drops on them. There are many other ways to trade it.

In many cases I find traders are not even aware of which stocks are the fastest moving stocks. If you do not track the best opportunities in market, then how do you compare your performance.

Here are the 30 fastest moving stock using a long term momentum criteria. Do you see opportunities or missed opportunities in it. How many positions do you have out of them.

AMIE,Ambassadors Internat Inc
ANGN,Angeion Corp
AUXL,Auxilium Pharmaceuticals Inc
AXR,Amrep Corp
BRLC,Syntax-Brillian Corp
CCOI,Cogent Communications Group Inc
CHDX,Chindex International Inc
CHTR,Charter Communications Inc
CLEC,Us Lec Corp Cl A
CNST,Constar Internatl
CRVL,Corvel Corp
FRG,Fronteer Development Group Inc
FTGX,FiberNet Telecom Group Inc
GEO,Geo Group (The)
GROW,U.S. Global Invest Inc A
HRZ,Horizon Lines Inc
IAAC,Internat Asset Holdg Cp
LMRA,Lumera Corporation
MFRI,Mfri Inc
MIKR,Mikron Infrared Inc
MWRK,Mothers Work Inc
NVEC,Nve Corp
SIGA,Siga Pharmaceuticals Inc
SIM,Grupo Simec S A Adr
SOFO,Sonic Foundry Inc
SQNM,Sequenom Inc
SRVY,Greenfield Online Inc
TRT,Trio-Tech Internat
UAHC,United American Healthcare Cor
UUU,Universal Security Instruments

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