Stock Selection

I've found that many of the stocks that were great for scalping simply don't work as well in momentum trading. Stocks like NYX, BOT, PJC were among my favorites. Attached at the bottom is a new stock universe that I've been watching as better momentum stocks. You'll notice a few that we would never have traded in the past like LOW, XOM, HD and TYC . Because the movements are slower and the trades take longer to develop, there is no clear advantage in strictly trading the thinner names. Also, stocks like XOM and HD give the advantage of trading more size once you figure out the price patterns. I'd recommend watching five of the them in different industry segments.

This week I'll be watching these 10 stocks:

USG
MMM
GD
MCO
SHW
XOM
RIG
LVS
CAT
JCI
X

-MM