My friend Ivan Hoff is the keeper of the momentum flame for StockTwits, he assembles the ultimate momentum stock list and keeps it updated to bring in the new momo leaders and drop off the ones that no longer matter as much. Momentum is a difficult game to play for many because it’s the kind of thing that “works until it doesn’t” and the high multiples don’t leave a lot of room for lax risk management.
Anyway, even if you’re staying out of the fray, knowing the leadership stocks is helpful just in terms of having a handle on the hot themes and the strongest pockets of the overall market.
In a bull market, corrections often are masked by sector rotation and remain unnoticed if one doesn’t look beyond the general impressions that market indexes leave. Under the relatively calm surface of $SPY and $QQQ, there has been notable profit taking and even distribution in many momentum names in the St50 list.
A good number of St50 stocks look heavy and vulnerable to further downside from a short-term perspective, so be careful if you own them. Their long-term trends are still intact: $HLF $LQDT $CMG $CYBX $MANH $UA $NKE
This is a good place to begin prepping for the Quarter, no matter what your investment discipline is. Head over for the full list below.