This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Monster Momentum Stocks to Trade

DELAFIELD, Wis. (Stockpickr) -- Animal spirits are in complete control of this market.

Just pull up a daily chart for shares of Tesla Motors (TSLA) here and you'll see exactly what I am taking about. That stock is absolutely exploding higher here by 17% to a new all-time high above $250 a share. Momentum traders and trend-following traders are basking in profits in this current market, while anyone who's betting against them is getting crushed on a daily basis.

>>Cheap Trades: 5 Breakout Stocks Under $10

What exactly is momentum trading? Basically, it's a strategy that aims to make profits off the continuation of existing trends in the market. A momentum trader believes that large increases in the price of a stock will be followed by additional gains -- and vice versa for stocks that are dropping sharply. This strategy is trend trading at its finest because a trader makes the conscious decision to focus only on the price of a stock they're trading. You simply find the momentum and trade it like you're a surfer riding a wave out to sea.

Must Read: 5 Hated Earnings Stocks You Should Love

Part of momentum trading is ignoring everything but the price of the equity you're trading. This is why TSLA bulls have banked such huge gains -- they've ignored the bears who constantly scream about the lofty valuation. Momentum and trend traders need to have great noise filters so that they do not let anything beyond the trend, price and volume patterns of a stock drive their decisions. These market players like to trade what they "see," not what they "think." Opinions have no place in this type of trading because they will create bias and keep you out of great trades -- such as this move in TSLA.

>>5 Stocks Ready to Explode on Bullish Earnings

With that in mind, here's a look at five momentum stocks that could be setting up for sharp spikes higher in the near future.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
CMG $727.66 0.44%
HLF $59.11 6.10%
VRTX $114.41 -0.67%
VNDA $12.08 4.00%
V $72.22 2.20%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs