How to find the bubble stocks

From time to time some stocks catch investors fancy and in a very short period of time double or triple. In most cases there is some “hope” story behind these stocks. These stocks can make breath taking moves before collapsing.Bubbles are more common when breadth becomes excessively bullish. These kind of periods are characterized by such irrational moves. To find these kind of periods look at the Market Monitor readings on Number of stocks up 50% in a month. When the readings climb over 20 you will notice big moves in many speculative stocks on marginal catalyst.These readings seldom climb above 20. For months you will see readings below 20, but once they climb above 20 you will notice the big speculative bubbles on handful of stocks, especially on…

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From time to time some stocks catch investors fancy and in a very short period of time double or triple. In most cases there is some “hope” story behind these stocks. These stocks can make breath taking moves before collapsing.

Bubbles are more common when breadth becomes excessively bullish. These kind of periods are characterized by such irrational moves. To find these kind of periods look at the Market Monitor readings on Number of stocks up 50% in a month. When the readings climb over 20 you will notice big moves in many speculative stocks on marginal catalyst.

These readings seldom climb above 20. For months you will see readings below 20, but once they climb above 20 you will notice the big speculative bubbles on handful of stocks, especially on low priced stocks and stocks with questionable fundamentals. They will make bigger moves during this period as speculative juices are in full flow during such periods.

As a momentum trader looking for such speculative excess period can offer you some good lottery ticket opportunities on low priced stocks. All such stocks rise up in momentum ranking during this period.

www.stockbee.biz If you are serious about your trading and want to build an enduring edge the Stockbee Member site might be for you. One of the most recommended site for learning to trade. 2200 plus members and growing everyday… www.stockbee.biz

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How to find the bubble stocks

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Welcome back individual investors

This was on front page of IBD couple of days ago. The TD Ameritrade CEO was going gaga over how the individual investors are back in full force now that market is up several montha in a row.We had a discussion on members site about it and we discussed how it is time to really protect open profits and not get cocky and keep one eye on quick exit. I made 2 videos warning people to not get carried away.Extremely good momentum does not last forever. If you go to the Market Monitor tab on this site and see the column When the readings go above 20, it is a sign of excessive bullishness. It invariable leads to correction.This time there was a bit of delay…

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This was on front page of IBD couple of days ago. The TD Ameritrade CEO was going gaga over how the individual investors are back in full force now that market is up several montha in a row.

We had a discussion on members site about it and we discussed how it is time to really protect open profits and not get cocky and keep one eye on quick exit. I made 2 videos warning people to not get carried away.

Extremely good momentum does not last forever. If you go to the Market Monitor tab on this site and see the column

When the readings go above 20, it is a sign of excessive bullishness. It invariable leads to correction.

This time there was a bit of delay in selling hitting after it went up. But invariably this is what happens.

Seen this movie for 14 years …. I know how it always ends….

People get mesmerised by excessive momentum and forget where there cap is while looking at vertical moves.

By the time they realise what happened not only their cap but clothes are also missing….

And as to those individual investors who very excitedly entered the market now, well the market is teaching them nice lesson in how to be a bag holder….

Welcome back individual investors after missing a big rally.

The bags are in right corner. You can take as many as you want.

www.stockbee.biz If you are serious about your trading and want to build an enduring edge the Stockbee Member site might be for you. One of the most recommended site for learning to trade. 2200 members and growing everyday… www.stockbee.biz

For more info: Welcome back individual investors

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Welcome back individual investors

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