momemtum study

[shawFund]

September 7 Picks:

It seems that the market becomes really hot these days. Many tech stocks are due for a run.

AMD just broke out the flat base (see my chart in AMD stock picking thread).
STX reversed today and will have a short term run.



Observation 2:

If the stock gained too much (50% or more) in one day, it is better to wait for a pull back.

[shawFund]

One Day Performance of yesterday's picks:



Today's picks will be given later.

[shawFund]

Tech on fire!!!



Some of yesterday's picks are among the biggest gainers today such as TFSM, HIV, GNVC.

Any gain > 5% is considered top 95% gains of the day.

[cumulina]

Nice work...applause!

[shawFund]

The result of yesterday's picks:

[shawFund]

Today's pick

[shawFund]

Observations:

1. semi, bio sectors very hot recently. Many in year-high or uptrend
2. after strong run, most of the stocks usually pulled back
3. fundamental will play out eventually

Will give more detailed analysis after one month.

[stocky]

shaw, applaud, great analysis and study. I am seeing some great theory/model in brewing. Good work. Keep it up.

[wrangler]

Hi shawfund
 Seen BPUR on you're post and didn't know if you still keep an eye on it but thought I'd let you know.Netsteering reported today David Judelson:Director bought 20,000 shares @ 1.362 transaction date was 08-25-05.
Good luck trading
wrangler

[john b mcginnis]

Shawfund,
At the beginning of this thread you mention five features in making up momentum. I'm trying to understand momentum in trading:

"1. it is one of the biggest gainers of the day;
 2. it is closed near the high;
 3. volume > 5x normal, and > 0.5mil
 4. it breaks out either from flat base or from important resistance
 5. it is the first day move "

Are there other features to look for? Or, can they vary from investor to investor?
And, one more question, I hope I don't sound stupid. How would you define "important resistance"?  I do understand support and resistance.

Thanks,  John

[shawFund]

Here is the first complete result of the momentum picks I made on Sept 2.

Some of the picks did give big returns such as TGC - 132%, FNSR - 31%, NWRE - 24%

There are some losers as well such as BPUR, CNLG and HEC.

So we need to check what is the reason for the big break-out before committing money in it.

[shawFund]

Among the winners, I understand that FNSR and NWRE are due to their early announcement that they expect good 3rd qt earnings and good guidance.

But TGC I don't understand. Anyone can give some inside look why it gained so much the last few days?

[wrangler]

TGC : on the move