ERB up 50% in 2 days
January 2, 2014
Stocks move in momentum bursts of 8 to 40%
The momentum bursts move from start to finish can be over in just 3 days
Lower priced stocks tend to make bigger moves of 20 to 40%.
Lower float stocks also tend to make bigger move.
A combination of low price and low float can be dynamite.
For example look at ERB
What is the float on it 4.8 million
in 2 days it is up 50%
If you want to find stocks like these read my posts from few days ago which goes in to details of finding these kind of stocks :
Stocks move in short term Momentum Bursts
Hi Pradeep, Very enlightening post and example. Thanks for sharing.
ReplyDeleteI noticed this stock has low avg-volume-traded * price. (~120k * 2 as of 2 days back). Is there a certain liquidity limit below which its dangerous to consider a stock?
For example I filter out those which trade below 390 * my_vol_times_price. (The market is open for 390 minutes, so this basically says, each minute the stock should have a turnover of what our buying slice is). Is this too restrictive?
a volume of 100k for last 2 to 3 days is good enough.
ReplyDeletePrior to 12/31, the volume in the prior 2 days was well under 100k.
ReplyDelete24k on 12/30 and 81k on 12/27. Do you ignore because of the 592k volume on 12/31?
as long as it has 100k volume on breakout day, that is ok
ReplyDeleteI look for v>100000 and v>v1 on breakout day.
ReplyDelete