Small caps are stirring

Bulk of the action in the market since July was dominated by large caps and mid caps. The small caps had a minor role to play. After a few months of consolidation, a hint of a rally is developing in small caps. In last couple of weeks the large caps have mostly been consolidating or pulling back.The AMEX index is quitely moving up now for few weeks.
Monday was the first day I started finding lots of small caps in scans and yesterday also there were more than 156 stocks up more than 5% on higher volume. The small caps are very good trading vehicles in my scheme of things. Even a small catalyst can propel a small cap stock 25% plus in a quarter. Inefficiencies are more evident in small caps and low float stocks than in large caps.
While two days action might be just a fluke, there are other interesting things showing up in my indicators. The Stock up 50% or more is at 9 by end of yesterday. Levels above 10 indicate a good momentum on individual stocks. Now this indicator is climbing back after making a low last week, which again shows momentum accelerating rather than decelerating. Inference more sectors , stocks breaking out to upside. Similarly my other indicators like number of stocks making 25% move in 65 days and number of stocks up 100% in a year have started climbing back after hitting bottom last week. So tentatively indicating a broadening of rally.
When a market gets stuck in a range, there is lot of churning. Stocks which have gone up go in to correction. While most of the attention gets focused on those stocks, new set of stocks and sectors start their upward march, most of the time the overall weakness in index can mask this. Over a period of time I have developed an overall market monitoring mechanism to try and capture some of these moves earlier. I will have more about it later today......

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles