As my market timing system goes bullish, it’s time we switch our focus towards momentum stocks that will be the leaders of this upturn. I sold out of my remaining short etf’s yesterday after the close and will be doing research this weekend to identify some great long plays with excellent risk/reward. While I remain unconvinced that the market has any firepower left after 3 huge days of up moves, I will trade only from the long side until we get another down confirmation. Any trend system will give back a portion of their gains when the trend changes. Below is a quote from The Turtle Traders.
“The trend follower disciplines his thoughts into a strict set of conditions for entering and exiting the market and acts on those rules or his system to the exclusion of all other market factors. This removes, hopefully, emotional judgemental influences from individual market decisions.” ~Barbara Dixon
GMCR has been a solid leader for the last 2 years and a IBD darling. Wait for breakout.
VHC showed up on my screens Thursday and just screamed higher Friday providing no entry. Massive volume leading this higher, I’d be a buyer near the 10ema.
ROVI has been a 4-bagger since the 08′ bottom and it’s starting to get towards the area where BO’s could fail. Each subsequent base has been shorter in length and that’s not really a good thing. This BO would have to be perfect with price/volume action.
GTE – volume has been high and this one has a certain “look” to it. Plus it’s Canadian!
