Throughout the day, I try to run different stock scans looking for pockets of strength and weakness.
Over the past month, I have been buying baskets of momentum for a swing trade, sometimes lasting a few hours and other times a few days. Over the last several trading days, I've noticed they've been rather uninspiring. There has been very little follow through from the big movers of a smaller nature (mid-cap and below). Earnings have been uninspiring as well The three names from last night are now trading pretty much unchanged. The news out of Washington has been pretty uninspiring when it comes to confidence. I think the theme for the day is pretty obvious.
But there are some old-school names popping up on the momentum breakout scans this morning. Advanced Micro Devices (AMD) and Best Buy (BBY) are both showing inspiring moves.
AMD looks like it is ready to try and fill the gap left in July. Volume was strong yesterday and is looking solid again today. The MACD is crossing over in a bullish fashion with a very strong CCI reading.
Advanced Micro Devices (AMD)
Source: StockCharts.com
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BBY is very similarly set up here. The MACD has already crossed over with strong volume over the past four days. That coupled with a strong CCI has BBY set up to try and make a push to $44. I am using a stop of the 8-day moving average around $38.21 here, getting long shares.
Best Buy (BBY)
Source: StockCharts.com