Today was an odd day.
While the indexes were basically break even, it’s noteworthy that the momentum stocks that have been on fire were down as a group. This poor underlying market breadth showed up in my own momentum watchlist. In a change of recent trends, only 23 of the 77 stocks on the list were green today. On days like this, the first thing I do to prep the coming days is look for stocks that showed relative strength.
Those of you who are Swing Trade Report members know that, along with a strong setup, relative strength is the reason I entered two positions from the focus list of stocks that we’ll discus in today’s video.
Before you watch today’s video, study this chart of ROKU.
Notice the bounce off the 9ema and today’s run to the recent high. What’s most impressive is today’s move came in a market where most momo stocks were down. Now if the market pops, ROKU likely breaks to new highs. While this is a textbook trend-continuation breakout, the main reason for entering today was relative strength.
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