There are a lot of ways to look at strong stocks. In the big more quality-type stocks, the trend is the momentum. But momentum in small, often low-quality, stocks is the trend. And if the trend is up, then we should be looking to buy. There are numerous approaches to this which we can develop over time. I have my ways, and one of them is buying into the selloffs after the first EA. And as long as the volume doesn’t explode into the highs and/or into the selling waves, then the probability is that the trend (momentum) is still up. Then it’s just a matter of judgement, the buying and the exiting – pure judgement. We also need, early in the session, to attempt to recognize which stocks can be runners for the day. That alone is very helpful to having profitable trades – the recognition.
So today at 10:30 AM, I left this comment:
“I will get back to EBAY in a bit, but it’s more of a longer-term thing. Today watching QNST, INPX, BSPM, AKER. Different things with each one. No positions in any of them so far.”
And at 12:45:
“Forgot to add in premarket, for the rest of my JNUG position with a 15.42 scratch stop. Also, here is that AKER chart, missed it so far.”
Below is a post-market scan of the day’s winners. Those 4 stocks were very active and strong stocks, allowing different strategies:
My focus ended up with AKER. Below are the self-explanatory charts. Yesterday, I exited ATOS in pm trading – ATOS post plus MSRT, gold. We’ll see about AKER if there is a spike. My stop is at .3490.
a
The 1 2 3 top a non-indicator on the first day of the rally?
Look at the associated volume and remember they can reset, so neutralize. Time-frames also. I can explain further if you’d like.
And today, more reaccum and absorption. I believed it could be a runner. Now it’s about managing.
Very busy today, but here is the addendum for my AKER trade. More at the pm comments page.