Momentum Monday – Seeds and 17 Sigma

This post is by Howard Lindzon from Howard Lindzon

Good Monday morning everyone.

Monday’s mean ‘Momentum Monday’ and while it has not been fun to be ‘Howie’ in a market that hates growth since December , the show must go on. Also, being Howie is relative and my heart goes out to the people of Ukraine suffering while I surf the internet. I am a fortunate man.

This week’s tour of the markets like always is sponsored by my friends at Marketsmith. You can watch/listen to the show right here on Youtube. I have embedded it below here on the blog:

As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.

For me, the cash sidelines for 30-60 percent of my stock exposure feels about right (I will aggressively swing trade once in a while). I am happier to pay up for ‘growth’ stocks when software/technology companies start trending again.

Any extra market time the last month has goner into watching the stocks on the Stocktwits momentum 25 lists. They have been bursting with energy, metals and financial stocks for months.

Ivanhoff and the rest of the swing traders moved to these as did investors and traders that follow price momentum.

JC has a great chart that sums up the strength (Read more...)