Finding Morning Mavericks

  1. Look for green on the screen after a big down opening. Stocks that don’t respond to early selling pressure may stay resilient for the entire session.
  2. Pull up an index component list, and look for the leaders in a down market and laggards in an up market. This method works especially well on the Dow Industrials, because of massive daily rotation by index players.
  3. Sort a list of forty sectors and exchange traded funds after the first hour and see which are bucking the tide in that session.
  4. Make a list of tier one broker upgrades on a down day or downgrades on an up day. These issues often attract a ton of contrary capital.
  5. Find out which sectors were unusually strong or weak in the Asian and European sessions. Then focus your attention on similar groups trading against the morning tide.
June 4, 2010 • Posted in: Market Day

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