In a post last week, I highlighed 5 stocks that I thought were good candidates for potential momentum buys. The desire to deviate from my ‘typical’ strategy (dip buyer) to find stocks with this type of characteristic was based on an observation by “The Fly” in The PPT. There he stated that, for no good reason whatsoever, certain stocks were catching a bid and levitating higher. I developed this list from observations I have made in the past with both upward and downward momentum, and wanted to see what would come of trying to isolate a few names.
Here is a visual update to that list:
I have been been keeping an eye as these progress and definitely spent a portion of my weekend trying to figure out how I could trade this. After developing the basic framework for a strategy that is simple to implement and manage I decided to go long the following three stocks late in Monday’s session:
Again, the idea and implementation is very simple and currently utilizes a small position size/wide stops. Details will be forthcoming in the AM.
Until then, my best to you all.