Tuesday, September 28, 2010
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.