Saturday, April 28, 2012

Growth stocks with potential for upside move

Here are some charts to discern.  These stocks have the potential for move to the upside.  Always follow proper risk management and honor your stops. click on the chart for a larger image.

Friday, April 20, 2012

Leading Growth Stocks Performance this week

How do I define a stock as a leading stock.  A strong believer in momentum and fundamentals while picking a stock for swing.  The smaller the list the better.  The criteria is as follows

1) stock should be up 20% in a quarter
2) price over $15
3) Average trading volume over 200K
4) EPS qtr over qtr > 30%
5) Sales qtr over qtr > 15%
6) ROE over 15%

There are several free tools available to scan for Leading stocks.  Finviz is one such tool I use a lot.

Leading Stocks FinViz Screener

The market is in a correction mode. Exhibit patience and wait for the stock to consolidate and setup.  Always use proper position sizing and stop loss.  

Wednesday, April 04, 2012

Market Momentum Index from Barchart has several tools to feel the pulse of the market.  A great site if you know what you are looking for.  The market momentum index is one such tool which is expressed as a percentage and is calculated as follows

The formula is:

  • 1) Calculate (price/previous - 1.0) for each split adjusted stock
  • 2) Accumulate the result from step 1) for approximately 4000 participating stocks
  • 3) Multiply the total in 2) by 100.0 and divide the number of participating stocks

Below is a link to the market momentum index chart (barchart symbol: $BCMM).  The spikes to the upside above 103 which indicates a strong  breadth thrust and is your chance to go long fundamentally strong stocks breaking out of good bases.  

As always use proper position sizing and stops to protect from losses.

market momentum index