Momentum Trading Strategy

Notes

Finding Leading Stocks

What to buy: how to find, screen and rank the strongest stocks and industry groups.

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$ARM ×
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“Hey MTS Velocity, show me today’s market movers with the earnings, sales, and profitability to back up the move.”

Here’s the scan:

✅ Up at least 4% today

✅ 1-month RS rating of 70+

✅ Quarterly EPS growth of at least 20%

✅ Quarterly sales growth of at least 20%

✅ ROE or pre-tax margins of at least 15%

My starting universe: 3,320 NYSE and Nasdaq stocks, already filtered for minimum price, average trading volume, and market cap.

Just 10 matches.

$ARM · $ALAB · $AMD · $MRVL · $RDDT · $SMCI · $ASX · $INTR · $SMCIP · $APH

Leading the list when I ran the scan: ARM +16.35%, ALAB +11.63%, and AMD +8.87%.

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The Market Gave the Green Light

On April 8, the market gapped up above the 50-day and 200-day moving averages on a follow-through day.

That was the green light to start participating again.

Many traders ignored the signal.

Then they complained that there was “nothing to buy.”

Then, after the strongest names started moving, many said the move had already happened and the stocks had already left without them.

But that was not true.

MU was one example I gave that was still setting up on April 22.

ARM is another example of a later mover that gave traders plenty of time to participate.

After the market confirmed strength, ARM began building momentum, tightened up, held key moving averages, and eventually made a powerful move higher.

This is why following a proven process matters.

The market gave the signal.

Leading stocks showed up before, during and after the market moved.

There were plenty of opportunities for traders who were prepared and knew what they were doing.

This is why we built the Momentum Trading Strategy Course and MTS Software.

The course gives you the foundation.

The software helps you find the leaders.

Stop wasting time guessing.