Stock Market Sets Up Old-Fashioned Momentum Trading
The stock market has traded into an inside candlestick setting up a day of momentum trading.
Inside day setups typically lead to trend days. Large green or red candlesticks and hold the winners to the close.
That's today's play.
In today's episode of Stocks for Breakfast, I create a game plan for today expecting momentum.
Two stocks mentioned are TSLA and NIO. Interesting ideas to trade. We discuss the short-term situation and the long-term investment.
Today's price action will tell us if the stimulus package has roots despite the worsening news from the weekend.
Always listen to price action. If we trade lower today, that means indecision still rules.
If we trade higher, traders are positioning for a rally.
Either way today I am looking for a trend day. Which means I expect price action to remain comfortably on one side of the open range.
For beginner traders, that means I will look for trades in my stocks, that are in sync with the SPY, QQQ and DJIA.
Today's best stocks include those in the industrial goods sector.
Here is the scan I mentioned in the video.
Here is the book I mentioned in the video.
Questions? Feel free to leave a comment.
Prefer email? Pete Renzulli: [email protected]
Have a great day!
Pete
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