Gravity Defiers
These are stocks that are the opposite of Bungee Jumpers.
Gravity Defiers are upward-travelling stocks that either have...
- an ADX Value of more than 50 (which indicates
a momentum that is way overheated), OR...
- a price that is at least 40% above the 50-day exponential moving average (EMA)
These stocks are flying so far to the upside that they are seemingly defying gravity
and are most likely to stage a pullback. They may make good shorting candidates.
If a stock that you own shows up on this screen, you may want to consider selling
a portion of the position to lock in some profits, because the stock will not
continue to defy gravity forever.
Stocks in this screen are presented in descending order by the percent above
the 50-day EMA, so the stocks at the top of the table are the ones that are
defying gravity the most.
See Gravity Defiers table from several weeks ago.
AMRN was a stock that had an ADX Value of 69 on Aug10,2001 with a price that was
over 64% above its 50-day EMA. It lost 25% of its value in 6 trading days.
BEFORE
(As Of Aug10,2001)
A Gravity Defier with ADX Value of 69
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AFTER
(As of Aug20,2001)
It fell 25% in 6 trading days
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