Momentum Trading and Market Trends

Momentum trading is discussed as a short-term approach to capitalize on stocks that are in favor with the market. The importance of finding stocks with price momentum, positive earnings estimate revisions, and favorable valuation is emphasized. The scan parameters for selecting momentum stocks are explained, including price-to-sales ratio, EPS estimate increase, relative strength rating, and analyst support. Examples of stocks that pass the momentum scan, such as Celestica and Liberty Energy, are provided and analyzed.