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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$KBE ×
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Hello Banks. Big Week.

Banks are quietly having a very strong week, and more importantly, they’re showing real relative strength last 3 months.

When I look at my industry group dashboard, this isn’t just one ETF popping. It’s broad confirmation:

  • KBE, KRE, IAT all showing strong 1W and 3M relative strength

  • Momentum is improving, not deteriorating

  • This is what early rotation and leadership expansion looks like

A Stock Example: PLBC

Plumas Bancorp (PLBC) is a good example of how this plays out at the stock level.

  • Small-cap regional bank

  • Strong composite and RS ratings

  • Breakout from consolidation on good earnings

  • Recently pushed to new highs while the group strengthens

  • RS line confirming the move