Strong selling patterns may develop on the US stock market
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After yesterday's break, the markets are facing a very important day, because the direction for the coming weeks may be decided if today's expected decline cannot be reversed by the end of today's trading. In practice, the momentum screening found only two companies suitable for examination, but even they are no longer in the best position, having risen so much that the potential return is not commensurate with the risk. Not a single stock suitable for a later turnaround was found. These results may already indicate that we are seeing a market-wide selling pattern, so it is not worth looking for buying opportunities at this time.
Best rated US stocks based on momentum ranking
Most popular US stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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