Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Four Top High-Momentum Stocks to Watch

Companies / Investing 2014 Feb 27, 2014 - 12:21 PM GMT

By: DailyGainsLetter

Companies

George Leong writes: There is a lot of money trading the stock market each day, and this is especially true with the momentum stocks that are making many traders rich.

While anyone can trade momentum stocks; to make the real big money, you need to be trading big positions on these momentum stocks and be willing to assume the risk that the trade could go the other way. The key to trading momentum stocks is to make sure you are closely monitoring the price action and the volume on the bid side, especially. A major upward push in bids could foreshadow a pending upward move in the stock. The same can be said for rising volume on the ask side that could suggest traders are exiting the stock.


While there are numerous momentum stocks, the following are examples of momentum stocks that I believe offer the best opportunities as these companies are also leaders in their areas.

Facebook, Inc. (NASDAQ/FB) has been one of the top performers and momentum stocks since bottoming out in 2013. The social media company, with more than one billion subscribers, is managing to drive up its mobile advertising business and monetize its enormous user base. Facebook also made waves last week after the company announced it would be paying a whopping $19.0 billion in stock for four-year-old mobile messaging company WhatsApp. The company was clearly overpriced, but given that the stock price of Facebook has also risen extraordinarily, the $19.0-billion price tag doesn’t seem so bad.

At the low end of Facebook’s stock price at around $17.00 a share, the deal would have been valued at around $4.75 billion, which seems more reasonable. However, WhatsApp does bring more than 450 million subscribers with it; albeit, we don’t know how many of these subscribers are already Facebook users. The key for Facebook will be to continue to grow its advertising revenues and monetize its massive user base for this momentum stock to move higher.

A second momentum stock that I feel is tops in the technology space is Google Inc. (NASDAQ/GOOG). Despite trading at over $1,000 a share, the company has excellent long-term potential and is working on numerous innovative projects, from its self-driving car to drones and its recent $3.2-billion purchase of Nest Labs, Inc.—a developer of next-generation consumer devices for the home, such as thermostats and smoke alarms. Google sold off its mobile business to Lenovo Group Limited, but it will still market its “Android” operating platform. Watch for the company to split its shares to levels that will allow more investors to buy.

Another hot high-momentum stock is luxury retailer Michael Kors Holdings Limited (NYSE/KORS). Michael Kors is a retail sector play that is not normally associated with traders; however, this company is approaching the $100.00-a-share level and continues to be hot. In my view, Michael Kors is one of the top retail plays based on consistently excellent growth metrics regardless of how the economy is doing.

In the restaurant sector, a top high-momentum stock to look at is Chipotle Mexican Grill, Inc. (NYSE/CMG). After a small mishap in late 2012, the stock has been on fire and is rocketing up on the charts. The provider of higher-end Mexican fast food offers a better alternative to having to eat at Taco Bell. Chipotle is also moving in on the fast food space that has been largely dominated by McDonalds Corporation (NYSE/MCD).

Investors may want to take a look at these high-momentum stocks, but remember that trading these stocks requires more time and monitoring, so you must be prepared to put in the effort.

This article Four Top High-Momentum Stocks to Watch was originally published at Daily Gains Letter

© 2014 Copyright Daily Gains Letter - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in