Homerun Derby

Posted by downtowntrader | 2/26/2006 09:08:00 PM | 0 comments »

One of my stategies is to take a small percentage of my portfolio and allocate it to small caps with high momentum. I never use more then 4-5% of trading capital on any one of these stocks because they can be volatile due to the big spreads and small floats on some of these. But some of these end up being huge winners which more then makes up for the many failed trades. You need to be very strict with your stops as well, because a some of these end up falling hard when the trend fails. Here are a few on my current watchlist.

COGO has some powerful intraday moves and this is one that could make the IBD 100 if it makes it to 15. This one has decent financials behind it.
ADAM looks like it will use previous resistance trendline as support in the near term. This is a motley fool tiny gem.
KLIC is another stock with strong IBD ratings.
SURG is basing in a bull flag.
EGY is another one with high IBD ratings and has worked off it's overbought indicators.
TRCI is yet another one with strong IBD ratings. Looks like it tried to breakout and pulled back, but if it rallies again, it may hold.
NICH looks like it has more room to run here.
Be sure to read my other updates from tonight below.
Good Luck,