Momentum and resiliency | stockbee


Momentum and resiliency

A good trading candidate should have both momentum and resiliency. Momentum helps you find fastest moving candidate so that you can expose your money to fastest moving stocks. But resiliency is the ability of stocks to correct very little during correction or to bounce back quickly from any pullback.

Resilient stocks can go up while the market is going down. VNDA is one such resilient stock in Top 25 stocks currently.

Resilient stocks correct very little during market correction. Some of the solar stocks are showing this kind of behavior currently and

Resilient stocks bounce back quickly from selling and pullbacks.

These are the kind of stocks that can make longer duration moves in momentum stock universe. Some stocks have just one or 3 day big momentum move and that is the end of momentum for them. Example of that is CLNT or RSOLor JASO.

The stock like MNKD is a good example of stock with both momentum and resiliency. It has held up to its momentum for multiple month.

Momentum phases end when this resiliency ends and stock corrects and fails to bounce back after a reversal or failure.

Top 25 stocks ranked by momentum

  1. vrml
  2. las
  3. vnda
  4. plug
  5. yrcw
  6. tsla
  7. csiq
  8. scty
  9. htch
  10. mnkd
  11. husa
  12. clsn
  13. bldp
  14. zlc
  15. aegr
  16. hsol
  17. clvs
  18. insm
  19. nsph
  20. sune
  21. noah
  22. jaso
  23. tmus
  24. mvis
  25. ostk
During a market correction resiliency becomes very important. Stocks that show it tend to be first to breakout once correction is over. To find such stocks focus should be on top 100 or 200 stocks ranked by momentum.

Currently lot of stocks are showing good resiliency and are setting up for breakout. 

No comments: