Selecting a momentum stock as an indicator is like watching the strongest fastest horse coming out of the gate first.

We can judge the condition of the track from him. As he gets tired, he may be overtaken by another stronger horse. When that happens, we switch horse by watching other momentum stocks as indicators.

Here is what I do everyday:

I arrange my list of "fresh" dumpers and gainers in groups on my level I quote screen. Then underneath these I put the list of 2nd day momentum stocks from yesterday. Once these are on my screen, I check the premarket volume of each of these. I weed out any low or no volume stocks. These stocks have little interest overnight so they probably won't be momentum players.

As the market opens, I glue to the blinking of the Last Price of the highest volume stock on my list. I compare the Last Price to the Bid and Ask. My expectation is to see profit-taking at the open because of the premarket gapping. I use it as indicator of how far the early pullbacks will go before buying hits. This is the first horse out of the gate and is our fastest and strongest player and should drop before the rest. This then becomes my first indicator stock.

I clue in on the indicator for selling by focusing on the Bid as it falls. It will continue to fall until we see a PAUSE. This is our clue that the direction is changing and will generally take place in the first hour after the open.