Well perfect momentum stocks are not quite as rare but I do feel those too happen when three distinct things happen in the stock market.
What are they?
1) Stock market stops going down and starts going up. If investors relied on this one rule they would do ok. You cannot beat the market. Even great stocks will go down (not much) or sideways in bear markets.
2) The stock technically looks great. Technical action does not mean Moving averages, MACD crossovers, and a whole host of other lagging and complete Smoke screen . It simply means price and volume.
3) Fundamentally the stock fits the rules. A great story, fantastic small companies at the right time fit this criteria. What “funny mentals" should you be looking at? Well what I look at are Price to Sales ratio, earning but whilst poast earnings are great to start with it's the potentialfuture earnings that hold the key, debt ratio, insider holding and institutional holdings. To name but a few.
Well the stock I have recommended to my list fits 2 of the three. And possibly all three IF, IF, the market rallies from here. Which right now it isn't so I am not going to say this is perfect timing here.
It's a small cap stock that has produced stellar profits and most importantly the future looks even better. It's capitalizing on a huge trend affecting the whole of the planet now (most of my great momentum stocks have a great story behind them) Remember what I am always hoping for is a 10 bagger. I do not get many but that's what I want to try and find. If the stock looks like like it “might gain" 50%,100% at a push I am not interested in it.
You can let me do the groundwork to finding and in effect managing these trades for you. Most importantly is when to exit. Too early and you miss the move. Too late and you lose as well. It's not easy but I have nailed enough great monster momentum stocks to see how it works.
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