Momentum Trading System » stocks

How do YOU determine the market momentum behind share price determination?

admin — Thu, 23 Dec 2010 00:54:47 +0000

When I look at cash flow, fundamentals, technicals, many …. most stocks do not look all that attractive. The news talks them up, but most on their balance and income statements…..their real income levels do not look all that great!? And yet, many of these share prices continue to rise …in the commodities and energy sectors and a few tech stocks?

Where is their momentum coming from ? Is there a momentum measuring stick or some indicators or signs of expectations that I should be looking at, or do you see the same thing…..a flat to declining market that is desparately looking for places to most safely park devaluing currencies?

Momentum: Measurement?

admin — Wed, 27 Oct 2010 00:54:46 +0000

With the table below as an example, what is the best way to measure relative momentum, comparing EACH DAY TO THE PREVIOUS DAY? Each of the numbers in the table represents the number of stocks up minus the number of stocks down on the New York Stock Exchange each day. I have been doing it thus far by simply measuring percent change and then removing the negative signs. On a related issue, my numbers don’t look correct the last two days. For instance, is a move from 7 to -749 really a greater percentage change than from -749 to 1611. The latter seems like a much larger move percentage wise, but according to the excel formula =(a1-a2)/abs(a2), it’s not.

8/2: 1611/ 315.09%
8/1: -749/ -10800.00%
7/31: 7/ -99.65%
7/28: 2020/ 541.05%
7/27: -458

how do I monitor performance of a "value investing" approach in stocks?

admin — Thu, 16 Sep 2010 00:57:07 +0000

I have come across a number of articles that discuss the plusses of a "value based investing" approach in stocks…… presumably as compared to the momentum approach.
My question is: are there any fundamental reasons why a growing, profitable business today should have a high stock price at any point in future (assuming that today the price is not high enough). To me, this thinking sounds similar to the naive belief one has that if you did well in school/college you will be rewarded in life… more wealth, wine, …

Also, how does one monitor the performance of this approach regularly?

Momentum Issue: Your Expertise Would Be Appreciated?

admin — Wed, 18 Aug 2010 00:55:02 +0000

In Column A is the number of stocks advancing minus the number of stocks declining on the New York Stock Exchange over the last 6 days ("value"). In Column B is the percent change from day to day. In Column C is the percent change removing the negative signs. I am creating an algorithm, part of which includes measuring the relative momentum from day to day of advancing less declining stocks. Currently, I ask three questions. First, was the value of advancing stocks minus declining stocks > or < than zero TODAY. If the answer is >, I assign it a number "1", if the answer is <, I assign it a number "2." Second, I ask if the value TODAY was > than yesterday. If yes, I assign a "1" and if no I assign a "2". I then remove the negative signs from the percentages and if the percentage is greater, I assign a "1" and if not a "2."

Is this the most efficacious way to measure momentum in this situation. Due to space problems, I’m putting the table in Additional details section.
A/B/C

7/28: 2020/541.05%/541.05%
7/27: -458/-270.92%/270.92%
7/26: 325/-72.39%/72.39%
7/25: 1177/-44.09%/44.09%
7/24: 2105/299.53%/299.53%
7/21: -1055

Momentum Issue?

admin — Sun, 08 Aug 2010 00:55:35 +0000

In the Table below, Column A represents the difference between the number of stocks advancing and the number of stocks declining on the New York Stock Exchange for each of the last 8 days. The most recent day is first in sequence.

So, for example, today there were 2427 more stocks advancing than declining. Column B represents the difference between the more recent day’s Column A value and the Column A value for the day preceding it, which I am trying to use as a relative momentum gauge. What’s the best way to determine and numerically EXPRESS the momentum of advancing to declining stocks from one day to the next here?–THE NEGATIVE NUMBERS ARE THROWING ME. On day 6, for example, you can see that the downside momentum (Column B: -2120) was GREATER than day 7′s upside Mo of (106), but -2120 is expressed as a NEGATIVE number because of more decliners and appears less.

A:B

2427:2157
270:827
-577:605
-1162:598
-1760:-485
-1275:-2120
845:106
739:1537
Further clarification: Obviously removing the negative signs doesn’t solve the problem as you can see when comparing Day 5 to Day 6.
Am I correct that if I simply say in Excel: =IF (A1>A2, B1). Then, create a separate column C, subtracting A1 from A2, and then asking =IF (A1 Yes, I think it is just a matter of removing the negative signs in the second column. Right?

Will stock market loose momentum if Democrat wins this Nov. 7 election?

admin — Wed, 21 Jul 2010 01:11:46 +0000

Should I sell all my mutual fund stocks for the better?

Best wishes,
M. Chowdhury
www.amreteckpharma.com

Who benefited from the "Flash Crash"?

admin — Wed, 23 Jun 2010 10:34:19 +0000

Who benefited from the "Flash Crash" and who were hurt?…If you believe like me that, it wasn,t an accident…A Guest Broker on CNBC mentioned that it Cleaned Out Momentum Traders….If Momentum Traders were patience, they could,ve bought back their stocks a couple of days ago for less than they were stopped out at?

Would the following momentum strategy yield consistent positive returns on an avg. annual basis?

admin — Thu, 13 May 2010 01:01:05 +0000

Buy the top % gainers(5 stocks priced between & ) every day, as soon as the market opens, sell the same day. Essentially you are betting on the momentum of the stocks to go even higher, and a pop in any stock(s) should outweigh the down movers. I have been modeling this strategy for the past few weeks with some amazing results. Has anyone tried this? What do you think?

How/Where can i find the hottest stocks in the last week, month, 3 months, etc?

admin — Sun, 02 May 2010 01:01:35 +0000

Something that will show me which stocks are on the best upward/downward trend. There has to be a website or something right? Which Stock Screener will do this? How can i research this? Also, would this be a good approach, which i think is called "riding momentum"? Please NO "penny stock" info. Thank you.

How to find Stock with high Momentum?

admin — Mon, 26 Apr 2010 15:26:46 +0000

Hey!

How can I find stock with high momentum?

I am getting pretty successful with my current investing strategy, but I feel like I could be more profitable if I was using it with stocks that have higher momentum.. so please help

THANK YOU!