Top momentum stocks below 30

December 16, 2006

This is the second list for weekend review. This list has lot of potential set ups. I have put around 10 on the list for next week. Anticipating breakouts on these can allow you to enter with low risk. Many times I put buy stop outside the range or conditional orders and in case the stock breaks in intended direction, you get low risk entry. Plus as I am closely watching only a handful of them, any strength allows me to enter fast in these names.

Studying the characteristics of such leading stocks can help you identify criteria essential for making such moves. My model constantly looks at such stocks outperforming the market and builds profile of ideal stocks and compares opportunities with them. Constantly monitoring this small universe ensures that you are investing in the best opportunities the market has to offer for given time period. All of the stocks in this list have at least doubled in price in last one year. This list does not include stocks below 5.

ACOR,Acorda Therapeutics Inc (Google  Yahoo  Earnings BW  Chart) 
ALTH,Allos Therapeutics Inc. (Google  Yahoo  Earnings BW  Chart) 
ALY,Allis-Chalmers Energy Inc (Google  Yahoo  Earnings BW  Chart) 
AMPX,Ampex Corp Class A (Google  Yahoo  Earnings BW  Chart) 
ANGN,Angeion Corp (Google  Yahoo  Earnings BW  Chart) 
AOB,American Oriental Bioengineering Inc (Google  Yahoo  Earnings BW  Chart) 
AUXL,Auxilium Pharmaceuticals Inc (Google  Yahoo  Earnings BW  Chart) 
AZL,Arizona Land Income Corp (Google  Yahoo  Earnings BW  Chart) 
BIOV,Bioveris Corp (Google  Yahoo  Earnings BW  Chart) 
BITI,Bio-imaging Technologies (Google  Yahoo  Earnings BW  Chart) 
BRLC,Syntax-Brillian Corp (Google  Yahoo  Earnings BW  Chart) 
BTJ,Bolt Technology Corp (Google  Yahoo  Earnings BW  Chart) 
CHDX,Chindex International Inc (Google  Yahoo  Earnings BW  Chart) 
CHINA,CDC Corp Class A (Google  Yahoo  Earnings BW  Chart) 
CLEC,Us Lec Corp Cl A (Google  Yahoo  Earnings BW  Chart) 
CUBA,Herzfeld Caribbean Basin (Google  Yahoo  Earnings BW  Chart) 
DGIT,Dg Fastchannel Inc (Google  Yahoo  Earnings BW  Chart) 
DVAX,Dynavax Tech (Google  Yahoo  Earnings BW  Chart) 
FCGI,First Consulting Grp Inc (Google  Yahoo  Earnings BW  Chart) 
FTGX,FiberNet Telecom Group Inc (Google  Yahoo  Earnings BW  Chart) 
GHDX,Genomic Health Inc (Google  Yahoo  Earnings BW  Chart) 
GIII,G-III Apparel Group Ltd (Google  Yahoo  Earnings BW  Chart) 
GOAM,Goamerica Inc (Google  Yahoo  Earnings BW  Chart) 
GRA,W.R. Grace & Co (Google  Yahoo  Earnings BW  Chart) 
GTXI,Gtx (Google  Yahoo  Earnings BW  Chart) 
HGO,Houston American Energy Corp (Google  Yahoo  Earnings BW  Chart) 
HRT,Arrhythmia Research Tech (Google  Yahoo  Earnings BW  Chart) 
HRZ,Horizon Lines Inc (Google  Yahoo  Earnings BW  Chart) 
HTI,Halozyme Therapeutics Inc (Google  Yahoo  Earnings BW  Chart) 
IGLD,Internet Gold-Golden (Google  Yahoo  Earnings BW  Chart) 
IIG,Imergent Inc (Google  Yahoo  Earnings BW  Chart) 
ININ,Interactive Intelligence (Google  Yahoo  Earnings BW  Chart) 
IOC,Interoil Corporation (Google  Yahoo  Earnings BW  Chart) 
JAS,Jo-ann Stores Inc (Google  Yahoo  Earnings BW  Chart) 
JST,Jinpan Internat Ltd (Google  Yahoo  Earnings BW  Chart) 
LMRA,Lumera Corporation (Google  Yahoo  Earnings BW  Chart) 
MALL,Pc Mall Inc (Google  Yahoo  Earnings BW  Chart) 
MCF,Contango Oil & Gas (Google  Yahoo  Earnings BW  Chart) 
MEH,Midwest Express Holding (Google  Yahoo  Earnings BW  Chart) 
MFRI,Mfri Inc (Google  Yahoo  Earnings BW  Chart) 
MIKR,Mikron Infrared Inc (Google  Yahoo  Earnings BW  Chart) 
NMGC,NeoMagic Corp (Google  Yahoo  Earnings BW  Chart) 
NRMX,Neurochem (Google  Yahoo  Earnings BW  Chart) 
NTL,Nortel Invesora Sa Ads (Google  Yahoo  Earnings BW  Chart) 
PCCC,Pc Connection Inc (Google  Yahoo  Earnings BW  Chart) 
PSMT,Pricesmart Inc (Google  Yahoo  Earnings BW  Chart) 
SIGM,Sigma Designs Inc (Google  Yahoo  Earnings BW  Chart) 
SQNM,Sequenom Inc (Google  Yahoo  Earnings BW  Chart) 
SRSL,Srs Labs Inc (Google  Yahoo  Earnings BW  Chart) 
SRVY,Greenfield Online Inc (Google  Yahoo  Earnings BW  Chart) 
STEC,Simple Technology Inc (Google  Yahoo  Earnings BW  Chart) 
SVNT,Savient Pharmaceuticals Inc (Google  Yahoo  Earnings BW  Chart) 
TATTF,Tat Technol Ltd (Google  Yahoo  Earnings BW  Chart) 
TGEN,Targeted Genetics Cp (Google  Yahoo  Earnings BW  Chart) 
TTEC,Teletech Holdings Inc (Google  Yahoo  Earnings BW  Chart) 
UAHC,United American Healthcare Cor (Google  Yahoo  Earnings BW  Chart) 
UUU,Universal Security Instruments (Google  Yahoo  Earnings BW  Chart) 
VSNT,Versant Corporation (Google  Yahoo  Earnings BW  Chart) 


"Confine your studies of movements to the prominent stocks of the day. If you cannot make money out of the leading active issues, you are not going to make money out of the stock market as a whole" Jesse Livermore

7 comments :

  1. UnknownDec 16, 2006, 11:46:00 PM

    A set of very good-looking stocks. Many have potential for a next leg.

    My favorite is UAHC. It looks extremely likely to run this week and will be at the top of my radar.

    I also think MEH and DGIT are in the middle of legs with some room to go.

    ReplyDelete
  2. UnknownDec 17, 2006, 3:32:00 PM

    Can you please share the formula for TC? I tried to run the scan using these criterion but I get 103 stocks.
    -Doubled from low in 1 year
    -Avg cash flow for 20 days > 2500
    -Price is more than 5 but less than 30
    -Within 5% of 6 month high

    Is there any manual selection that you apply? If yes, how can I do that?

    ReplyDelete
  3. Pradeep BondeDec 17, 2006, 3:54:00 PM

    For 30 plus momentum
    1) C >= 30 (close above 30)= true
    2) AVGC20 * AVGV20 >= 2500 (cashflow)= true
    3) 365.25 / 200 * ((C - AVGC200 ) / AVGC200) 200 day momentum
    Now take top 3% by list rank.

    41 stocks in scan, should match this list.
    For less than 30 but greater than 5
    1) c<=30 true
    2) AVGC20 * AVGV20 >= 2500 AND C >= 5 (combined scan for cashflow plus price above 5)
    3) 365.25 / 200 * ((C - AVGC200 ) / AVGC200)

    Take top 2%. Should give you 60 stocks in other list

    You can similarly create a list of below 5 priced
    c<=5
    cashflow
    200 day momentum top 4% will give you 33 stocks below 5

    Hope this clarifies. See if you get same matches.
    I have also modified the breakout formula since I told you about it last time.

    ReplyDelete
  4. UnknownDec 17, 2006, 6:50:00 PM

    Great! Using the formulas I got 41 and 60 for the two scans. Can you please explain what the 200 day momentum scan means - 365.25 / 200 * ((C - AVGC200 ) / AVGC200) ? Unfortunately, I was not able to copy all the formulas from the google group TC2007 topic. Do you have a copy?

    ReplyDelete
  5. Pradeep BondeDec 17, 2006, 7:26:00 PM

    365.25 / 200 * ((C - AVGC200 ) / AVGC200)
    365.25 is number of days in a year (taking leap year in to account).
    Avgc200 is a simple average of price for last 200 days.

    So if a stocks has in 200 days moved X% compared to its 200 day avg price, what will be the growth in 365.25. It gives you a way to rank stock. The other way is by using the IBD relative strength formula or by comparing every stock to the benchmark.

    The objective is to buy the fastest moving vehicle for any given time period.

    So if you have a continuously (daily adjusted) portfolio of top 1% stock by this measure(around 25 stocks), you will beat the market by substantial % irrespective of market conditions. That is the concept.

    In practice for transaction cost reason, one can do the adjustment on a weekly basis or when a stock breaks out. There are many tactical thing one needs to do to tweak this but essentialy if you hold a portfolio of 25 top ranked stocks, your probability of outperformance is high.

    One can experiment with the 200 day parameters to look at range of optimum value, but as a rule the lower the value you use, more noisy it will be. Say instead of 200 days you use 10 days, the list will be influenced more by a single day change in price. You can calculate the 200 day average differently giving different weights to recent prices as against older prices. Which will make marginal difference.

    Why break it up in 0-5, 5-30 and 30 plus? It is not at all necessary. As I have said earlier, price growth is not a function of price.Somehow on the street people like stocks above 30, so I am just playing to the gallery.

    One line philosophy behind all this is find the fastest moving vehicle all the time,if you do that you can never lose the race.

    But many people find it difficult to trade, thinking there is some catch to it.

    For more details see Ed Seykota web site. Look under
    http://www.seykota.com/tribe/TSP/index.htm

    ReplyDelete
  6. UnknownDec 17, 2006, 7:37:00 PM

    Thanks for taking the time to explain.

    ReplyDelete
  7. Pradeep BondeDec 17, 2006, 7:45:00 PM

    One of the shortcomings of this is that it eliminates stocks which do not have 200 day trading history. So it misses out on recent IPO, which outperform.

    ReplyDelete

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