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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (11)	1/5/1998 4:50:00 PM
From: Ken Wolff	Respond to of 2120

Irby, Generally you will find most momentum stocks have a direct relationship to News such as earnings, or new products, etc.. Sometimes you will find stocks that are moving due to Technical indicators such as hitting the bottom of a 200 Day moving average. Knowing the reason for the momentum is very helpful in guessing the future of your trade as every trader wishes to buy into that stock that doubles in a few days. Open Shorts are a pattern of stocks that historically fall from the market Open. I generally like to look for over-reaction, for example that bio-tech stock that has risen in value by 50% in one day on a story that will not have much of an impact on the earnings for several years. You can generally track ALL the gainers and dumpers to select the most likely to fall from the open. It is best done in a Nervous market as a BIG rally in the stock market can move many stocks up at the open. Only your trading notes and research will reveal the best timing.