MOMO stocks 2/8/2010

I run scans all the time.  Here is a scan I run to find find momentum stocks.  The list is dynamic as 1 dip in the market  can change the whole nature of the list. See stocks with momo go up the fastest when market runs and drop like a bag of terds when market dips.

This is a great place if your a swingtrader for a watchlist.  If you see the stocks many of them share the same characteristics.  Lot of alt- plays, ethanol, biodiesel.  This is a composite momo screen so not every stock is in the same mode some are near breakout some are near pullback, many are flagging. Lots are actionable   So there are different setups in this group.

How to use this list?

Everyday something will breakout on this watchlist. $ivan last week It was flagging for days: then boooooooom Depending on your style of trading you can buy it in anticipation of breakout (with tight risk controls) or set some alerts and play the breaks

One thing I like to track is the changes in this list.  New additions and also stocks that stay.  The stocks that keep showing up on this list are showing continuous strength.   That is a plus and something that should be watched closely.  Also I like to track the nature of the list to see what types of stocks are working in this market as I scan the whole stock universe. Notice stocks that fall of this list. They can be great short candidates.

What do you notice? How many posts have I done on $nep ? Lots!  Heck a lot of these stocks I find them before they even make it on the momo list (I got a great feel for what will become momo)    So that is what I focus my list on first. Also new additions. See NEP showed up for the umpteenth  time. So this is a stock if im a trader I watch closely as it probably is ready to btfo over and over for the next couple weeks (and boy has it). There will be many seperate and different trades in it as it will move up, pullback, flag, breakout, pullback etc etc

If you track my twitter posts you will see me continuously play these stocks for daytrades, swingtrades, scalps.  I will play them till the momo is over.  I even take the stocks that have gotten ahead of themselves and are fading and put them on a “short list”. Past few weeks I have shorted $biof $hpj numerous momo stocks. When market turns they fall hard.  Many of the stocks that were on the momo list for months fell off when the market pulled back last 2 weeks and NEW MOMO leaders emerged. Keep an eye on those that are just showing up.

 
A lot of these stocks can be swung as they are sitting on support  many are ready to bounce if you dont trade breakouts