A quick glance at the Top Stocks Ranked by Sector and Momentum flashes a few warnings signs. Every time we've seen the monthly growth above 30% the market has corrected. Last week we hit 36% and right now we're sitting at 33.97%. This confirms the overbought signal on the market monitor.
Intially, I wanted to find some nice setups with our new Risk/Reward calulation (Column RR). After reviewing the stocks in the watchlist, I see a lot more "toppy" looking setups than bases forming. Below are a just a few. Time will tell.
2 Response to Review: Top Stocks Ranked by Sector and Momentum
I've been watching VMW for a few weeks now keep wedging its way higher - that's another one looks toppy to me. AKAM as well. Wouldn't be surprised to see BIDU pull back into the low 90's soon either.
Some wiggle room would be nice. Pretty hard to take any thing right now. long or short.
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