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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$NET ×
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Anyone buy NET?

I like the earnings and sales growth on $NET.

  • EPS +38%.

  • Sales +35%.

  • Estimates look like they're accelerating on the sales side too.

  • Fund ownership is rising quarter after quarter.

  • Strong RS

I would like to see ROE or pretax margins strong, the way O'Neil talks about in his book. These aren't.

The other positives plus a low-risk, high-reward pullback off the 50-day still make this a great trade.