MY JOURNAL FOR TUESDAY MORNING – SEPTEMBER 19, 2017
NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS
My New Blog Post at 5iResearch.ca Highlighting the Importance of Volume Indicators & Not Getting Fixated on Indexes
My main focus is tracing abnormal volatility which flags the potential of momentum coming into an underlying name or sector. As a momentum trader, I rarely look at major indexes, but at small-cap names with high institutional or insider ownership. This is because small-cap names offer many advantages to traders. One being that they tend to move with a greater velocity than large-cap names. This is due to supply and demand.
Generally, retail traders follow the major indexes, while assuming these benchmarks reflect the entire market. However, this is often not the case. Just analyzing the major indexes limits your ability to make higher profits. This is not a problem for the hobby trader, but for the trader interested in making a living, this can become a major issue. Rather than limiting oneself to big name companies, retail traders should embrace every potential trade. Small-cap stocks that are not components of a major index rarely follow the same price action. Small-cap stocks often move in advance of the indexes and at times are not correlated, especially here in Canada.
Traders think that simply learning technical analysis will teach them how to trade, which is not true. Historically, stock market data was primarily price and time, volume was rarely included because there were only a handful of exchanges. The first charts had to be hand-drawn in the point and figure format. Candlesticks were not introduced to the western markets until the 1990’s.
Innergex Renewable Energy (TSX:INE) is a prime example of a small-cap stock that has continued to make new highs while the TSX composite index has continued to make new lows. – READ MORE
We also have updated reports on Savaria (TSX:SIS), Black Diamond Group (TSX:BDI), Kinaxis (TSX:KXS), Ten Peaks Coffee (TSX:TPK), and Badger Daylighting (TSX:BAD). We have one rating upgrade, one rating downgrade and a few names that have maintained the rating. If you’re not currently a member of 5i Research, you can view the full report for free, by signing up for a Free One-Month Trial
BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS
Magna Intl (TSX:MG)
Mason Graphite (TSXV:LLG)
Paramount Resources (TSX:POU)
Hempco Food and Fiber Inc (TSXV:HEMP)
Helius Medical Technologies (TSX:HSM)
The Stars Group (TSX:TSGI)
(TSX:CP) Canadian Pacific Railway
Harvest One Cannabis (TSXV:HVST)
Mullen Group (TSX:MTL)
Have a great day! 🙂
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