The market bounced off lows since Russia invaded Ukraine, and it brought a couple of low-priced runners.
Check out this chart of Indonesia Energy Corporation Limited (AMEX: INDO) as an example…
There’s a phenomenon that happens in the market called ‘sector momentum,’ and it helps day traders gain an edge.
I haven’t seen much activity in the markets over the past few weeks. But it looks like volatility is back!
What Is Sector Momentum?
Sometimes several stocks in the same sector will spike over a few days.
It can occur in two different ways…
- A big spiker sends traders scrambling to find the closest resembling stock before it makes a similar move. That means stocks in the same sector with similar prices and floats.
- A global catalyst influences a certain sector, causing prices to react in a big way.
I’m sure you heard that last Thursday, Russia officially invaded Ukraine. The conflict predicts a hike in oil prices.
Read this CBS News headline…
Gas prices going up means that stocks will rise — specifically, energy stocks.
These Energy Stocks Are Spiking
Once I’ve identified a hot sector, I start looking for any other stocks that might experience bullish price behavior.
The most recent energy runners are as follows…
- Indonesia Energy Corporation Limited (AMEX: INDO)
- Imperial Petroleum Inc. (NASDAQ: IMPP)
- Enservco Corporation (AMEX: ENSV)
- CYREN Ltd. (NASDAQ: CYRN)
I’ll definitely keep these tickers on my watchlist going forward. You should too. Start following volatility when you find it in the market.
Going forward, keep an eye out for any energy stocks that start moving.
It’s not enough to play the hottest stock of the day. To find profits I’ve gotta think one step ahead.
Real-Time Advice
Things change pretty quickly in this niche. For example, I’m writing this on a Friday, and by the time you read it on Monday, everything could be different.
That’s why it’s so important to learn self-sufficiency. That’s why my Trading Accelerator students join me twice a week for live trading webinars.
They can hear my thought process. And seeing my screen in real time is a huge game-changer.
I’ve made over $1 million in the stock market so far, and I’m not done yet. Want to come along for the journey?
Apply for my Trading Accelerator today!
Time to make up your mind … Ready to start profiting?
It’s up to you,
Roland Wolf
Editor, The Wolf’s Den
