As my market timing system goes bullish, it’s time we switch our focus towards momentum stocks that will be the leaders of this upturn. I sold out of my remaining short etf’s yesterday after the close and will be doing research this weekend to identify some great long plays with excellent risk/reward. While I remain unconvinced that the market has any firepower left after 3 huge days of up moves, I will trade only from the long side until we get another down confirmation. Any trend system will give back a portion of their gains when the trend changes. Below is a quote from The Turtle Traders.

“The trend follower disciplines his thoughts into a strict set of conditions for entering and exiting the market and acts on those rules or his system to the exclusion of all other market factors. This removes, hopefully, emotional judgemental influences from individual market decisions.”  ~Barbara Dixon

GMCR has been a solid leader for the last 2 years and a IBD darling. Wait for breakout.

VHC showed up on my screens Thursday and just screamed higher Friday providing no entry. Massive volume leading this higher, I’d be a buyer near the 10ema.

ROVI has been a 4-bagger since the 08′ bottom and it’s starting to get towards the area where BO’s could fail. Each subsequent base has been shorter in length and that’s not really a good thing. This BO would have to be perfect with price/volume action.

GTE – volume has been high and this one has a certain “look” to it. Plus it’s Canadian!


3 Responses to “Momentum Stocks Worth Watching”

  1. steveo Says:

    The currencies, Cable and Euro, have not followed SPX as expected. However my long call on SPX

    (/ES futures) was spot on. Not sure if it has more to run.

    My call on today’s Jobs Report as being “not as bad as expected” and a 1.5% rally today, was pretty good.

    It’s time for a weekend. From my point of view, it is quite obvious that people are just getting more and more whacked out, completely losing their senses.

    It is very interesting to observe this mass social psychosis, as an observer with “skin in the game”.

    Astro was implying a SPX run to 1105, and a blog reader emailed in this chart of the Russell.

    http://oahutrading.blogspot.com/2010/09/bearish-hardly-cable-and-euro-have-legs.html

    The overthrow looks perfect, the Astro is completed, but currencies seems to still have legs.

    Tim Knight closed the last of his short positions yesterday….the perfect wave 2, tiring out bears by time and price, with a final push up to make even the most strident bear capitulate. PS holding QID from 17.8, but now that my ES futures long “hedge” is gone, The QID could stress me out if market continues higher next week.
    This is odd.

    But here is the scary part for bears…EWI released a new monthly Financial forecast. Of course they are predicting imminent doom, and we all know how the MM’s HBB games EWI, ramping against their calls to take money from the bears.

    Think of it, how many retail, buy and hold type, long only type, are still playing this market after being whipsawed around for a whole year. Almost none. The only source of fresh money for HBB is to game the bears, who are committed as “smart observers” who realize the horrific fundamentals that this country and the whole world face.

  2. jeff pierce Says:

    where do you think we go now that we’ve hit the 1105 target now? it wouldn’t surprise me to see the market fall from here, but I have to follow my system or thuse I’m just a discretionary trader. right now the market has had enough strength that one has to respect that.

  3. Jack Damn Says:

    Think of it, how many retail, buy and hold type, long only type, are still playing this market after being whipsawed around for a whole year. Almost none. The only source of fresh money for HBB is to game the bears, who are committed as “smart observers” who realize the horrific fundamentals that this country and the whole world face.

    Well said.

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