Looking at Two Momentum Names

Fridays have become good research and planning days. I put some time into looking at a few momentum names reporting before the end of the month to try to get a jump on strategy into their earnings reports.

Salesforce.com (CRM) has really started to disappear from the radar for most momentum traders. The sign of a maturing company or just the lack of performance in shares lately? I'm thinking it is a bit of both. Looking at the past reactions after the report, there are a few trends worth noting from a strategy perspective. First, the stock has a tendency to follow through nicely on the opening trend. A down opening has seen some fairly good carry-through lower and an up opening does the same in the continued positive direction. This is similar to Acxiom (ACXM) with the expected 4% to 6% follow-through from the opening bell. Of course, Acxiom would have returned so much more this time around, but there is no guarantee that Salesforce will do the same....371 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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