1. Do the work pre-market. 2. Understand that in the short-term all that matters is momo & mean reversion. 3.#1 scan should be stocks with highest the momentum, rank stocks based on best year to date performance.
4. Typically, contraction leads to expansion in stocks with high momentum. 5. $MARK a stock with very high momentum (fresh momo) starts to pullback, notice the volume decreasing. 6. Big tell, stock prints an inside day on the lowest volume since before the momo started.
7. For me, the inside day under this context signifies that the preceding move is over or coming to an end. 8. Now you want to be ready and buy on the first sign of expansion, usually through the previous day high. 9. You want to buy’em tight and sell them loose.
10. recent examples $ROKU $CDNA $QURE11. Stocks down multiple days in a row is a good scan, many stocks that are up the most in the short-term have this one set up; down 3days or more up today.
STOCK OF THE WEEK RECAP