Finding Stocks Before They Breakout
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.
12. When you buy them tight, it won’t take much to know when you are wrong like $ZGNX13. With that being said don’t be afraid of getting stopped out and reentering if it sets up again $ECYT
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at firstname.lastname@example.org or 646-480-7463.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
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