The market had a great day yesterday. However, some possible stiff resistance sits right on top of us. The Small Caps led yesterday’s rally, but in the grand scheme of things, it is still trading in a range that is now 85-days long.

Follow through has been an issue lately, in other words, it has not paid to chase gains.

Trading is a numbers game, it should be done within a portfolio of passive core index ETF holdings. Because stocks move in short-term bursts, they can be timed, in the short-term momentum and mean reversion is why most stocks move.  Scans can be created by looking at the most recent winners in the last 30-days if your timeframe falls into that window.

Here is my watchlist for today;

I have an interest in these stocks on the long side if and only if they go through yesterday’s high plus .10-cents. This single criterion will narrow down the list and get you involved only in the stocks that are on the move. The primary drivers of stocks in the short term is momentum and mean reversion. Stocks that have a significant move in the short term tend to rest and move sideways for a few days and then resume higher more often than not. These momentum bursts typically last 1-10 days. 


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 or 646-480-7463. 

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