How to Find Momentum Pullbacks on a Day Like Today

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Today’s a rough day for most bullish investors. But there are ways to turn those lemons into lemonade thanks to TradeStation’s powerful functionality.

RadarScreen®, our ever-useful, do-anything tool, powers the workspace below. It contains a list of companies in the S&P 500 and sorts them with a few custom indicators.

Momentum Pullbacks workspace highlighting HCA.

The “5d” column shows a stock’s five-day, or weekly, change. There’s also a 6-month change and market cap. Here are the steps:

  • Import all the members of the S&P 500 into RadarScreen. (Data button → Add Symbol List → S&P 500 Index.
  • Rank them by market cap and add reference rows.
  • Insert a line break below No. 200 by market cap. This isolates the 200 biggest companies.
  • Sort by 6-month change, descending.
  • Link the symbol on RadarScreen to Chart Analysis. (See the little green “S” on top of both apps.)

This lets you easily identify the top performers in the index over the last six months. Then bigger negative values in the 5d column shows stocks that have pulled back nicely in the last week. Want a tool for finding “bullish flags?” Look no further.

Want access to this powerful work space? Request a copy on Monday’s Market Action!

Thanks to symbol linking, you can easily browse down the results and see their charts. Not surprisingly, some of the best performers are health-care names like Eli Lilly (LLY) and HCA (HCA). Click here for more on how these “boring stocks” have outperformed as volatility sweeps technology and energy.

In conclusion, selloffs like today can feel terrible if you’re a bull looking to own stocks. But thanks to TradeStation’s award-winning tools, crisis can be turned into opportunity..

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David Russell is VP of Content Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.