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It is often possible to catch a stock early in a sustained move by monitoring stocks that have undergone a recent momentum surge. Our momentum scanner computes the 12-day and 25-day momentum of each of thousands of stocks. The 50 stocks with the greatest 25-day momentum are listed here (the list is updated daily). Momentum is expressed in percentage terms rather than as a ratio. Remember that a high 25-day momentum figure does not necessarily mean a viable trend has begun. There may be nearby overhead resistance to any more upside movement. If there is, you should either wait and see if the stock breaks through that resistance or look elsewhere. Look at the stock's 3-year chart and it's 1-year chart to get a sense of the context for the recent momentum. Is the stock accelerating after touching its rising trendline, breaking through its upper Bollinger band, bursting through the neckline of an inverted head-and-shoulders formation, or breaking through the upper resistance boundary of an ascending triangle? Look for such things to validate that the momentum is probably the beginning of a significant move. Extreme readings are likely to presage a continuation of the upside movement. We include two measurements here. One is "price momentum" and the other is "average volume momentum." if the increase in price momentum is significant, you can expect average volume to increase with the price momentum. Check a stock carefully before you buy it. A momentum surge may result because of a possible takeover. In such cases, a stock will usually gap up to a certain level then level off with little price change from then on (it goes relatively flat). There might be another surge later or the stock may stay there for up to a few months and then plummet if the takeover collapses. In short, the upside move may already be over. We believe it is better to look for stocks that have not spiked up abruptly, and that you make sure there is no nearby resistance overhanging the stock. We also think it is best to avoid any high-momentum stock that has negative volume momentum. .
Did You Know?
The Valuator does not report PE and PEG ratios based on last year's obsolete data. Nor does it try to look ahead a full year (analysts are notoriously inaccurate when they try to estimate a year ahead). Instead, the 1-year earnings estimates it uses for computing PE & PEG ratios look ahead only about 6 months (6 months past + 6 months future). We believe this is far more accurate. Also, the market tends to look ahead about six months. · The Stops tool computes trailing volatility-adjusted stop losses that can be adjusted to match your tolerance for risk and investment time-horizon. Let the stock have just enough room for its "normal" fluctuations as it climbs (each stock is different), but cut losses quickly when it declines more than is "normal" for that stock. · StockAlerts can help you find stocks for your watchlist that are more likely to surge within a few days. .
. Updated For Next Market Opening As Shown in Table
(Tuesday's after-market updates are usually delayed. See the "Notes" page for timing of updates) .
Links To Other Places On This Web Site Stop Losses Stops Products The Valuator StockAlerts Trading Tools About Us Contact Us Fees & Refunds Links Index . All pages on this Web site are protected by copyright Copyright 2010 by Stock Disciplines, LLC No part of this publication may be reproduced or distributed in any form by any means. .
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"But thou shalt remember the Lord thy God: for it is he that giveth thee power to get wealth." Deut. 8:18
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