What happens to top ranked momentum stocks
When a stock makes a big move ity can potentially double from that level OR it can get in to trouble and drop more than 40 to 50% from the high
I have been publishing this list since July 2013.
Have a look at the stocks that made it to number 1 to 10 in it and see what happens to them in next 6 month after them make it to number one .
Majority of them go down 40 to 50%.
Similar thing happens to stocks ranked number one by 65 days or 21 days. They go down 20 to 50% in next six month. And you can look at any popular list of ranked stocks like IBD50 or some copy cat lists like that and most will show this phenomenon. When a stock makes it to number one rank in IBD 50 you should put it on short watchlist.
If you understand this structural tendency of stocks , that is a good starting point for a short setup.
Rest is about developing a actionable set up around it. If you are smart you should be able to do it relatively easily.
2 comments:
Hey, I had a great time reading your website. Do you have an email address that I can contact you on? Thank you and hope to hear from you soon.
Regards,
Joel
JHouston791 gmail.com
It is on the site in right hand panel
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