4. Typically, contraction leads to expansion in stocks with high momentum. 5. $MARK a stock with very high momentum (fresh momo) starts to pullback, notice the volume decreasing. 6. Big tell, stock prints an inside day on the lowest volume since before the momo started.
7. For me, the inside day under this context signifies that the preceding move is over or coming to an end. 8. Now you want to be ready and buy on the first sign of expansion, usually through the previous day high. 9. You want to buy'em tight and sell them loose.
10. recent examples $ROKU $CDNA $QURE 11. Stocks down multiple days in a row is a good scan, many stocks that are up the most in the short-term have this one set up; down 3days or more up today.
12. When you buy them tight, it won't take much to know when you are wrong like $ZGNX 13. With that being said don't be afraid of getting stopped out and reentering if it sets up again $ECYT
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at firstname.lastname@example.org or 646-480-7463.