Momentum Monday 8th May

7th May '23 by Elio D'Amato

13 comments 523 reads

Welcome to the second week of our revamped Momentum Monday, hopefully you have enjoyed the fresh additions and changes. Be sure to let us know your feedback as we don’t know if we are hitting the market unless you tell us so.

Here is the format for this week’s report:

Broader market sentiment
Stocks in the “Shine Zone”
52 week high screen (including changes)

There was no client request for stocks that we will cover this week. There was one suggestion that we received, however Stockopedia is yet to be updated with it. Once the UK team makes it available, we will cover it. As mentioned last week, if there are no client requests, we will not be making them up and the section will be excluded.

If you wish to see one of your stocks analysed from a Momentum perspective, either enter it in the comments below, or if you are a little bit shy, email support@stockopedia.com.au

Be sure to let us know your feedback down below now that you have two weeks to digest it. Hopefully we can continue to support your Momentum needs moving forward.

And don’t be a stranger. We are all Stockopedians, so please interact with us. This service will only be as powerful as what you contribute.

Broader Market Sentiment

Here we look at market direction (both in the US and ASX). This is not to determine an entry or exit signal… We should always rely on individual charts of stocks to do that. But rather to understand how aggressive/cautious traders should be when considering individual stocks.

Last week we split the discussion for each region into Chart sentiment and Macro sentiment so that the two remain separate. We include discussions around macro sentiment because, rightly or wrongly, they move markets. But sometimes they don’t… at least not yet..

S&P500

US Chart sentiment

For the fourth week in a row the S&P500 hardly moved.

S&P500 weekly chart

Despite the S&P500 recording its worst week since March falling 0.8%, by no means do I think that is a disaster and the market's remain on a plateau waiting for clear direction.

Over the past two weeks what we have seen is a…

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Jonner

8th May '23

Format

Case studies, even in hindsight using stockopedia for identifying potential. How can momentum factor be tracked?

Elio D'Amato

Hi Jonner, That is tough. The most efficient way would be through an analysis of the momentum score. But even then that is not complete. Especially for someone using breakouts, support and resistance lines as I do.

Further, in my Wednesday article I articulate, "The pragmatic nature of technical analysis means I cannot vouch for any specific past performance that can stand up to the rigours of assessment. But what I can say is that they work for me. And likewise you need to determine through your own investigation whether they are right for you."

As to the origins of my methods , likewise as I said, "Their grounding is a combination of learnings including those of Charles Dow, Stan Weinstein, Joseph Granville, life experience and hurt money."

And because I am doing this piece as an education piece, I also identified stocks to be wary of (so not a sell per se.... just keep an eye out for. - Eg a stock that falls out of the Zone is not an automatic sell)

Thanks for the comment and we will look to continue to evolve.

Rom Ryan

Hi Elio

It would be great if you can look into the momentum for BSL and TLC

David Mc

Thank you for your article, while I see value in your Shine zone list, I found a lot more value in your previous approach of a more in depth discussion of shares you had picked. is a compromise possible? where you discuss a few (less than before) and 1 or 2 that members request. Thank you

When they catch up, call it "ROC and Rollcall" of stocks.

9th May '23

Appreciate the feedback. Thank you.

Jimbol

HIi Elio

I am thoroughly enjoying your contributions to Stockopedia. Could you comment on AX1 and NCK. Both being in retailing, AX1 flying and NCK near 52 wk low

Thanks for getting into the spirit of things Jimbol. They're on the list.

Thanks Rom. I will add them to the list. Excellent contributions.

NicholasB

I think I posted this wrongly in the Village square Elio, so here it is again. Charter Hall (ASX:CHC) interests me. Stock rank of 96 and low PE... and much fear and loathing due to a general view that higher interest rates damage property investment management companies. However their net gearing on Stockopedia is low at 3.02% and interest cover of 100%. Interested in your (and others') views on this one please.

I agree with you David Mc. It was what I was trying to say to Elio in MM last week (1 May).

10th May '23

Crystal Clear... Though I am really warming to the client suggestions. If I could guarantee a few more (each week) I could cover more, rather than invent the list each week.

Basically the rule of thumb is if you know the answer already put it in the Village Square for others to see. However if you want my view from a momentum perspective, put it here. I will add CHC to the list.

This is a good segway for everyone else.... if there is a stock on your radar, add it to the Village Square as it is looking a little lonely. Sure its cold outside.... but we would all appreciate a warm fire pit to sit around and have a think.

Momentum Monday 8th May

Broader Market Sentiment

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Elio D'Amato

13 comments

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