Since December 23, the long dormancy of ZJYL.US, a medical company, has witnessed an unexpected trend for many investors: on December 18, the stock reached a high of $509.87 during intraday trading, with an intraday increase of 263.69%; on January 24, the stock rose 55.98% during intraday trading and closed at $166.9, which is about 20 times higher than the issue price within a month.

Before that, ZJYL.US faced many obstacles on its path to listing. As early as 2020, it secretly submitted forms to the U.S. SEC, and it took more than two years for it to officially debut on NASDAQ in March 2023. The issue price was $8, issuing 1 million shares, and raised a total of $8 million. The closing price on the first day of trading was $7.95, a decrease of 0.62% compared to the issue price.  

Both in terms of business scale and performance growth rate, ZJYL.US's performance is not impressive. The label of its manufacturing outsourcing model also prevents the company from obtaining high valuations like the technology and innovative pharmaceutical sectors. Without any major positive news, the abnormal surge in stock prices has led to continuous questioning and skepticism regarding speculation and stock manipulation in public opinion.

Momentum Investing

On paper, momentum investing seems less like an investing strategy and more like a knee-jerk reaction to market information. The idea of selling losers and buying winners is seductive, but it flies in the face of the tried and true Wall Street adage, buy low, sell high.

Momentum investing is a trading strategy in which investors buy securities that are rising and sell them when they look to have peaked.The goal is to work with volatility by finding buying opportunities in short-term uptrends and then sell when the securities start to lose momentum.Then, the investor takes the cash and looks for the next short-term uptrend, or buying opportunity, and repeats the process.Skilled traders understand when to enter into a position, how long to hold it for, and when to exit; they can also react to short-term, news-driven spikes or selloffs.

Risks of momentum trading include moving into a position too early, closing out too late, and getting distracted and missing key trends and technical deviations.

Top Gainers of This Week

Explore the market movers and top stock gainers in the US stock market, capturing notable surges in stock prices. Stay informed about these movers, leveraging real-time data and historical trends to make informed investment decisions.