Sunday, March 9, 2014


In physics, momentum is the  property an object has due to its mass and its motion. It is a product of the body's mass and velocity. It can be powerful.

In stocks it can also be powerful. It can propel priced upwards or downward, but it can be overturned by events such as changes in profit or accounting issues.
This week accounting issues affected SCTY, driving the price down and  a loss of upward momentum . My guess it SCTY will come out fine, but that is just a guess. In any event I don’t view it as a buying opportunity due to the unknowns.

Last week I mentioned we could be “seeing a pullback soon, perhaps another mini-correction”. This is long overdue and now compounded with the Russian invasion of the Ukraine. The markets hate unknowns. Markets hate wars and rumor of wars, but when these events slide into the past the markets can roar.
Recently Cramer mentioned 15 momentum stocks that I hope to review, for now I will just say I own 5 of the 15:  AMZN, GOOG, PCLN, SCTY and TSLA

This list of momentum stocks follows his earlier list of "stocks to own": GOOG,  GE, JCI, BAC, CIEN,  XLNX, AAPL, CAT, BA, JNJ and  TJX. 
And the list companies Cramer considers to be "well managed": MMM, WFM and  HON.

What did I see in my weekend review?

The 10-yr Treasury yield
is 2.79 %

IBD (Investor Business Daily) : Confirmed Up Trend

Copernicus Systems: Long but mixed in my IMHO

Moneys Flows:  all positive

HAIN +7.73 %, had a great week

Momentum Stocks:

AMZN +5.95%
TSLA +10.28%

PCLN +6.35%
SCTY -6.90% dropped based on accounting issues…I don’t like to hear this.

QQQ +4.79%

QLD +1.83%
IWM +3.69%

IBB +1.73% ….the stumble continues, are the markets turning away from biotech or is this a buying opportunity?
SPY +2.01%

Cramer Picks:
BAC +3.97%...good to see the banks gaining momentum

CAT +6.12%

CIEN +2.49%
GOOG +4.73 ….where is the momentum now?

XLNX +10.93% …momentum here
HON +5.95%

BA +1.35%

What will I do?
No plans at this point, but some leverage on small caps might be nice

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