Charles Schwab (SCHW) On Momo Momentum Watch Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Charles Schwab ( SCHW) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Charles Schwab as such a stock due to the following factors:

  • SCHW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $170.7 million.
  • SCHW has a PE ratio of 34.
  • SCHW is currently in the upper 30% of its 1-year range.
  • SCHW is in the upper 25% of its 20-day range.
  • SCHW is in the upper 35% of its 5-day range.
  • SCHW is currently trading above yesterday's high.
  • SCHW has experienced a gap between today's open and yesterday's close of 1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

If you liked this article you might like

Massachusetts Opens Inquiry Into 7 Brokerage Firms

Charles Schwab, SAP, Nike, General Electric: 'Mad Money' Lightning Round

Old Dogs Are Learning New Tricks: Cramer's 'Mad Money' Recap (Wednesday 7/26/17)

Goldman Sachs' Culture of Secrecy Draws New Skepticism After Trading Gaffe