3SOF

September 7 Picks:

It seems that the market becomes really hot these days. Many tech stocks are due for a run.

AMD just broke out the flat base (see my chart in AMD stock picking thread).
STX reversed today and will have a short term run.



Observation 2:

If the stock gained too much (50% or more) in one day, it is better to wait for a pull back.

One Day Performance of yesterday's picks:



Today's picks will be given later.

Tech on fire!!!



Some of yesterday's picks are among the biggest gainers today such as TFSM, HIV, GNVC.

Any gain > 5% is considered top 95% gains of the day.

Nice work...applause!

The result of yesterday's picks:

Today's pick

Observations:

1. semi, bio sectors very hot recently. Many in year-high or uptrend
2. after strong run, most of the stocks usually pulled back
3. fundamental will play out eventually

Will give more detailed analysis after one month.

shaw, applaud, great analysis and study. I am seeing some great theory/model in brewing. Good work. Keep it up.

Hi shawfund
Seen BPUR on you're post and didn't know if you still keep an eye on it but thought I'd let you know.Netsteering reported today David Judelson:Director bought 20,000 shares @ 1.362 transaction date was 08-25-05.
Good luck trading
wrangler

Shawfund,
At the beginning of this thread you mention five features in making up momentum. I'm trying to understand momentum in trading:

"1. it is one of the biggest gainers of the day;
2. it is closed near the high;
3. volume > 5x normal, and > 0.5mil
4. it breaks out either from flat base or from important resistance
5. it is the first day move "

Are there other features to look for? Or, can they vary from investor to investor?
And, one more question, I hope I don't sound stupid. How would you define "important resistance"?  I do understand support and resistance.

Thanks,  John

Here is the first complete result of the momentum picks I made on Sept 2.

Some of the picks did give big returns such as TGC - 132%, FNSR - 31%, NWRE - 24%

There are some losers as well such as BPUR, CNLG and HEC.

So we need to check what is the reason for the big break-out before committing money in it.

Among the winners, I understand that FNSR and NWRE are due to their early announcement that they expect good 3rd qt earnings and good guidance.

But TGC I don't understand. Anyone can give some inside look why it gained so much the last few days?

TGC : on the move