The value investors pass on these the boutique s to growth investors during this transition phase. This is where primarily growth investors focus. Longer term investors will then be jumping back into this stock. Short term momentum (momentum of a month) is generally negative. One of the questions raised yesterday was what will happen to these momentum stocks if market has a correction or pullback at this level. During pullback some momentum stocks reverse, some form wide range, some have a very orderly and shallow pullback. Also setup exits in to strength without waiting for a pullback. The basic idea behind his setup is that short term momentum spike in penny stocks will mean revert. To understand that you have to look at stocks with momentum for a month ago, 2 month ago, 3 month ago, and so on. They might have pullbacks on the way but they tend to breakout in direction of the momentum.
There are many ways to skin the momentum cat provided you know how momentum works. As I have said before there are many things which work in the market provided you can build a bridge between the concept and a workable method. If I have to recommend only one book on technical analysis, I would recommend, How Charts Can Help You in the stock Market by William L. Jiler. If the market goes according to your speculation, you can make a good profit and get back your margin. S&P/ASX200 Index: Market capitalisation-weighted index of stocks listed on the ASX. This implies, if the index rises one hundred and twenty fifth, the stock ought to rise by quite one hundred and twenty fifth. Other than this, TV is also a way to regularly monitor the stock market each day, CNBC is the bet and Popular one channel. After the shares are issued for the first time through the process of IPO, the stock exchange facilitates the regular selling and buying of those listed shares through the trading platform known as the Secondary market.