Bounce lacked volume
There was no shortage of opportunities today. There were over 42 breakout in Double Trouble universe with many stocks breaking out of ranges.
Market Monitor
Total 4% plus bullish breakouts=164
Total 4% plus bearish breakouts= 41
65 day bullish/bearish ratio= 938/269
Stocks up 50% or more in a month=12
Stocks up 25% or more in a month=115
Number of stocks with 100% plus move = 385
Number of stocks up 200% or more = 87
4% plus signals for 100plus universe=42
4% plus signals for 200plus universe=10
Selected breakouts
ACOR,Acorda Therapeutics Inc (Google Yahoo Earnings Chart)
AKRX,Akorn Inc (Google Yahoo Earnings Chart)
AMAG,Advanced Magnetics Inc (Google Yahoo Earnings Chart)
ARRY,Array Biopharma Inc (Google Yahoo Earnings Chart)
BSQR,bSquare Corp (Google Yahoo Earnings Chart)
CBEY,CBeyond Communications Inc (Google Yahoo Earnings Chart)
CCOI,Cogent Communications Group Inc (Google Yahoo Earnings Chart)
CPA,Copa Holdings S.A. (Google Yahoo Earnings Chart)
EXM,Excel Maritime Carriers (Google Yahoo Earnings Chart)
FTK,Flotek Industries Inc (Google Yahoo Earnings Chart)
GTXI,Gtx (Google Yahoo Earnings Chart)
IIG,Imergent Inc (Google Yahoo Earnings Chart)
INCY,Incyte Corp (Google Yahoo Earnings Chart)
JAV,Javelin Pharmaceuticals Inc (Google Yahoo Earnings Chart)
JSDA,Jones Soda Co (Google Yahoo Earnings Chart)
LFC,China Life Insurance Company (Google Yahoo Earnings Chart)
LXU,Lsb Industries Inc (Google Yahoo Earnings Chart)
NXST,Nexstar Broadcasting Group (Google Yahoo Earnings Chart)
ONXX,Onyx Pharmaceuticals Inc (Google Yahoo Earnings Chart)
PERY,Perry Ellis Int'l (Google Yahoo Earnings Chart)
RNIN,Wireless Ronin Technologies Inc (Google Yahoo Earnings Chart)
RZ,Raser Technologies Inc (Google Yahoo Earnings Chart)
SIGA,Siga Pharmaceuticals Inc (Google Yahoo Earnings Chart)
SPIL,Siliconware Precision Industries Company Ltd ADS (Google Yahoo Earnings Chart)
SPPI,Spectrum Pharm Inc (Google Yahoo Earnings Chart)
SWHC,Smith & Wesson Hldg Corp (Google Yahoo Earnings Chart)
TLEO,Taleo Corp (Google Yahoo Earnings Chart)
VHI,Valhi Inc (Google Yahoo Earnings Chart)
VOLC,Volcano Corp (Google Yahoo Earnings Chart)
VYYO,Vyyo Incorporated (Google Yahoo Earnings Chart)
Possible long candidates based on 65 days price growth or being in top 20 in terms of overall 260 days growth or recently crossing 100% plus mark are ACOR, CCOI, GTXI, CPA, and TLEO.
ACOR is up 965% from its 260 days low. Stock like ACOR shows the value of buying the top 25, even if you get stopped out. This is my 5 th trade in this stock, one of it was not profitable. The stocks in the top 20 or 25 list just have super hot momentum, at some stage they will reverse, but till then buying breakouts with tight stop is most profitable. Provided you can psychologically do it. Not an easy task for most. Plus if you start believing in things like resistance and support, you are unlikely to buy breakouts on such stocks.
Trading a methodology like Double Trouble requires fortitude. You can lose 1% each on 10 consecutive trades and 11 th trade will give you 30 or 40% in few weeks. For many traders to trade something like that can be very unsettling.
The other critical thing is not to get emotionally involved on any of the stock. If you start looking at other variables like earnings or something else to make decision on this list, you might not get best results.The whole idea behind trading something like this is pure momentum and runaway trends. That is the reason I use momentum criteria like one year growth or 65 days growth to shortlist candidates in this list and not float or earnings.
Momentum trading works for bulk of the time, the trick is to avoid some dangerous periods.
6 comments:
Yesterday you had VOLC as a potentail long candidate, but today it has not made the cut. Does it mean it has been taken out of the list?
I entered VOLC yesterday. So the fresh signal is not meaningful.
You also mention to ride the momentum and not to waste time looking for support/resistance etc. From that I assume, you are saying if a person wants to ride this momentum, then he should jump right on and put a tight stop. What would you condiser a proper stop to be for a stock like VOLC? I realize it can be based on portfolio size, risk appetite etc, but if one has to be specific for VOLC, what would be a guide line be?
All my stops are at two days low before entry day. In this case the low was 17.98 on 4/9,that is the stop , my entry was on 4/11,entry was at 18.53.The capital risked was slightly less than 1% of total equity.
VOLC is not a buy at this stage according to my scheme of things.
I looked over Nexstar Broadcasting Group Inc. (NXST) and think this one may continue to run. Thanks for the tip. I have included it in my Linear Stock blog at http://lnca.com
too much noise
,way cool site!
MAS
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