Momentum Trading Strategy

Notes

Finding Leading Stocks

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

Showing 1–7 of 7 notes

$DELL ×
View on Substack ↗

HPE Is Showing the Kind of Strength I Want to See

Besides DELL, HPE is another computer hardware name that has held up better than most of the group. It’s up about 4% premarket this morning and has a 93 RS Rating, along with a big improvement in both earnings and sales growth. Definitely one I’m keeping an eye on for continued relative strength.

View on Substack ↗

Let’s Go, Dell.

DELL is exactly the type of growth stock I want to trade.

Strong earnings. Strong sales. Strong relative strength.

DELL also showed clear relative strength during the recent market weakness, holding up far better than many of the stocks that led the prior advance.

View on Substack ↗

Stop Waiting for Someone to Hand You the Next Big Winner

If you are struggling to find the big winning stocks, you do not need to wait around for me or anyone else to tell you the names.

Open the Relative Strength Stock Screener and click the Leader / CANSLIM preset stock screen.

You will immediately see many of the market’s strongest names near the top of the list.

As you scroll through the list, some names will be extended. Those go on your watchlist so you can wait for the next proper pullback or setup.

Some will be near pivot points.

Some will already be actionable.

That is the entire point of the screener.

It is not there to overwhelm you with tickers. It is there to help you quickly identify where the real leadership is.

This is the same exact process I have used to find and share many of the biggest winners since January.

Names like:

SNDK

MU

AAOI

AXTI

DELL

CIEN

LITE

WDC

STX

SIMO

and many more!

Your job is to build the habit of checking the list, following the leaders, managing risk, and being ready when the setup appears.

Everything you need to learn the process is inside the Momentum Trading Strategy Course. I also provide a list of books that teach many of the same timeless principles.

Learn the process.

Use the tools.

Trust yourself.

You can do this.

View on Substack ↗

The Multi-Bagger Irony

A lot of stock newsletters sell people on the hope of finding the next multi-bagger.

A 100%, 200%, or 300% winner.

Many talk about holding for years to get the big returns.

What people don't realize is this:

By the time you figure out they were full of it, they already made plenty of money selling you the hope.

The funny thing is, I don't even teach or claim to give people multi-baggers.

But many investors would likely get similar or better results by learning how to identify true growth stock leadership, proper setups, institutional demand, and strong price action.

Here are a few names I mentioned in January and early February:

• AAOI +302%

• AXTI +294%

• SNDK +249%

• DELL +214%

• MU +160%

• LITE +155%

• CIEN +147%

• STRL +127%

• STX +126%

• WDC +124%

• INTC +101%

• AMD +101%

These were discussed in the paid subscriber chat and watchlist posts.

But to be clear, this is not what I do here.

I'm not telling you to blindly buy a stock and hold it until it becomes a multi-bagger.

The goal is to teach you how to find leadership, manage risk, identify proper entries, and build a repeatable process.

View on Substack ↗

Why I Track Big Gap-Ups Inside the RS Screener

Someone asked me why I track episodic pivots and big gap-ups inside the Relative Strength Stock Screener.

Here’s why.

I wrote about Dell on March 1st after its episodic pivot, when the stock gapped up more than 10% on earnings with massive volume.

Since then, Dell has continued to trend higher, up roughly 100%, while making higher highs and higher lows.

Strong industry group. High relative strength across multiple time frames. Strong earnings. Strong sales. Massive volume after earnings.

That is exactly the kind of behavior I want to track.

Not because every gap-up works.

Not because you blindly chase every stock that moves.

But because big institutional-quality moves often leave footprints before the bigger trend fully develops.

The Relative Strength stock screener inside the Momentum Trading Strategy app is simple, but extremely powerful.

It helps me find the names that are showing up in the right places, at the right time, with the right characteristics.

This is exactly what I’m using to find the stocks I share.