Weekly Update: A Big Week for Stocks

This week was a big one for stocks. After the CPI report showed that inflation was cooling faster than expected, the indexes took off and posted their best day in two years.

The S&P 500 climbed 5.9% for the week, and the Nasdaq surged 8.84%.

While these numbers are impressive, I am not yet convinced the bear market is over.

The biggest one-day gains in the market almost always come in the middle of bear markets. Stocks simply do not surge in the same manner under bull market conditions.

During the bear market of 2008, the S&P 500 climbed over 4% in a day 14 different times. The index did not bottom until March 2009.

It is important to not get carried away and change one’s view on the market based on any one candle.

The Nasdaq Composite index rallied 25% off its lows from June to August before rolling over and making yet another new multi-year low.

The Big Picture

Big picture, we are still trading beneath a declining 200-day moving average and stocks are not progressing in a healthy way.

At a true bottom, we should see new leadership emerging. A new investment “theme” containing specific groups of stocks should be rallying into new highs and leading the market higher.

So far, we have not seen that.

Solar and biotechs have been the standouts so far, but only a handful of the solar names I was watching a few months ago still look healthy.

Thursday’s bounce was largely made up of what I consider “trash” stocks bouncing off the bottom.

It felt more like a short-covering rally to me as the biggest winners were beaten-down names with heavy short interest.

For the time being, I remain focused on the short side, and I am unlikely to change that view until we see real progress.

Will I buy the absolute low? No.

But I don’t want to get suckered into yet another bear market rally only to watch it fizzle on a single piece of bad news like we have seen recently.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the “Powerhouse Trio” Next Week!

Three of the top trading experts in the industry are seeing opportunities in the market right now that are some of the biggest they’ve seen in years.

That’s why on Wednesday, November 16 at 12 p.m. Eastern…

Josh Martinez, and Anthony Speciale and I – the trading world’s “powerhouse trio”…

Are hosting a special LIVE broadcast to reveal $150,000 worth of opportunities we’re seeing right now.

So click here to register for this FREE event…

Live Coaching Session

I hope you’ll join me on Monday, Nov. 14, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Why It’s Still Hard to Be Bullish

The October rally came to an abrupt end this week.

The Nasdaq 100 fell over 7%, and the S&P 500 was down about 4.5%.

Daily Chart of S&P 500 Index with Moving Averages – Source: TradingView

Both indexes are failing at their respective 50-day moving averages (MAs). 

Even if they were able to push through to the upside, it would be only the first hurdle in returning to a bull market.

As long as the market continues to trade below a declining 50-day MA, it is hard to be overly bullish. 

Portfolio Review

The quickest profits are coming on the short side right now, which is where I will continue to focus this coming week.

If you are not comfortable shorting stocks or just don’t like to, I understand.

For those who play both sides of the market, however, I hope you saw the newest Stealth Trades alert I sent this week on Canadian Solar Inc. (CSIQ).

Daily Chart of Canadian Solar Inc. (CSIQ) – Source: TradingView

CSIQ is approaching a likely failure point on the chart, setting up a nice entry for a short trade.

I’ve drawn a white dashed line on the chart above to highlight this key support/resistance level. 

The stock broke out from that level in late July after a clean consolidation pattern.

It then served as support, propping the stock up for several months. But CSIQ broke this support zone in October. 

When a leading stock breaks down below a prior breakout level, especially in a decisive move lower like CSIQ made, it becomes a broken leader. 

It’s a clear sign that institutions are selling and the party is over.

What was support usually becomes resistance, so I expect to see shares hold below the $35-$36 range.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Nov. 7, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Looking for the Leaders of the Next Bull Market

Stocks continued to rally this week, with the S&P 500 reaching its 50-day moving average.

The market, as tracked by the SPDR S&P 500 ETF Trust (SPY), is now up roughly 10% from the lows.

Daily Chart of SPDR S&P 500 ETF Trust (SPY) – Source: TradingView

Bear market rallies are not uncommon, and it is important to maintain a big-picture outlook.

The S&P 500 is still down 20% from its 2021 highs, and the Nasdaq 100 is off more than 30%.

Tech Trounced

Technology stocks have been hit harder than other areas of the market this year, and many of the biggest names made new lows this week.

Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) all fell on poor earnings results. The chart below shows the performance of those stocks for the week…

Performance Chart of Amazon (AMZN), Alphabet (GOOGL) & Meta Platforms (META) – Source: TradingView

Not everything is down, however…

In fact, the indexes managed to shake off these results and hold their ground to close the week.

This is a good sign for stocks. The market’s ability to rally while the previous market leaders fall tells me we are likely near the bottom of this bear market.

We are also making money from our official Stealth Trades

Portfolio Review

McKesson Corporation (MCK), which we recommended as a buy in July, is again making new highs.

Daily Chart of McKesson Corporation (MCK) – Source: TradingView

We also made a quick profit shorting California Water Service Group (CWT) stock two weeks ago.

See the details in our Trader Tracker right here.

Remember that the leaders of one bull market will not lead the next…

That means Meta, Alphabet and Amazon will not be the big winners of the new bull market.

It’ll be smaller companies, many of which you have never heard of, that deliver the biggest gains in the coming years.

That’s why it is important to focus on strength and pay attention to the stocks making new highs when the market is just coming off its lows.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Oct. 31, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Big Energy Breakouts on the Horizon?

We finally got a positive week for stocks, but it wasn’t enough to get me excited.

As you can see in the image below, the S&P 500 is having a hard time even getting above its 21-day moving average.

Daily Chart of SPDR S&P 500 ETF Trust (SPY) – Source: TradingView

And there are still the declining 50-day and 200-day moving averages to contend with.

As of Friday morning, only 25% of stocks traded above their respective 50- and 200-day moving averages…

Percentage of Stocks Above 50- & 200-Day Moving Averages – Source: TradingView

What that means is that the market is still incredibly weak.

Pockets of Strength

However, as with any bear market, there is usually at least one pocket of strength to be found.

Earlier this year, that was the energy space.

Dozens of oil and gas stocks made huge moves higher despite the indexes trading lower.

After a good-sized correction in June, the energy sector is again showing signs of life.

Daily Chart of Energy Select Sector SPDR Fund (XLE) – Source: TradingView

As you can see in the chart of the Energy Select Sector SPDR Fund (XLE) above, the sector is breaking out from a four-month consolidation base.

Several energy names in the group are emerging from similar patterns.

It’s still too early to say whether the market has indeed bottomed or if there is further to fall.

But if you’re looking for stocks to buy, the energy group looks the best to me right now.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Oct. 24, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Sticking to the Plan

I am busy traveling this week, so this will be a brief Weekly Update… 

The big news this week was Thursday’s CPI report, which showed that inflation is still running extremely hot.

As you can see in the five-minute chart of Nasdaq 100 (NQ) futures below, the initial reaction was to the downside…

Five-Minute Chart of Nasdaq 100 (NQ) Futures – Source: TradingView

But that was followed by a sharp reversal to the upside, and the major indexes actually closed in the green that day.

The bears roared back and took the market down again on Friday, however, showing that they’re still firmly in charge.

As I said last week, until we see a consistent and meaningful advance in the market, I remain focused on the short side with select long ideas mixed in.

In fact, I am reissuing last week’s Watchlist today, as each of the three stocks continue to set up well.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Oct. 17, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Bulls Fail to Keep the Bears at Bay

After huge up-days on Monday and Tuesday, stocks got clobbered on Friday, erasing nearly all of the gains from earlier in the week.

Even back-to-back 90% up-volume days (something that would be hugely bullish any other time) was not enough to keep the bears at bay.

Daily Chart of S&P 500 Index with Volume Indicators – Source: TradingView

Until we see a consistent and meaningful advance in the market, I remain focused on the short side.

And as I pointed out last week, cash is a position. Don’t be scared to sit on the sidelines and wait for more optimal conditions.

Staying Short

Last week, I pointed out three potential short trades I was watching, and all of them made big moves lower as anticipated.

The best performer was Lantheus Holdings, Inc. (LNTH)…

I was looking to short the stock on a re-test of the prior support level near $67.

In fact, we took this trade in my Alpha Stocks service, selling short at $76.04.

Alpha Stocks is a much more active trading service, and these are the kinds of trades we look for there as well.

Using our precise, low-risk approach, we were able to risk less than 5% on a trade that is currently up almost 15%.

Daily Chart of Lantheus Holdings, Inc. (LNTH) – Source: TradingView

This is a concept known as “asymmetric risk”…

Asymmetric Risk

It boils down to risking a fraction of what you plan to make.

By only taking trades that can pay you a multiple of what you are risking, you can maintain an edge in the market.

Lose a little when you’re wrong… Make a lot when you’re right…

That’s the secret to successful trading.

We did the same thing on Array Technologies, Inc. (ARRY), which I brought to your attention last week as well.

Daily Chart of Array Technologies, Inc. (ARRY) – Source: TradingView

In fact, we were able to enter short within pennies of the week’s high.

As of this writing, Alpha Stocks is up 13% on that trade as well.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Oct. 10, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.

Weekly Update: Time to Scale It Back

Welcome to day 312 of the stock market bloodbath.

After peaking last November, stocks have been heading down for all of 2022.

Weekly Chart of Invesco QQQ Trust (QQQ) – Source: TradingView

Every time the doors of hope and optimism are opened, fear and selling slam them shut.

The Nasdaq Composite is now down 33% from its highs, wiping out a third of the value of all public companies.

Even worse, the heightened volatility surrounding these moves has created frustrating conditions for both buyers and short sellers.

Scale It Back

Low-risk entry points are delivering at a lower-than-usual success rate as stocks gyrate violently in both directions and trigger stop losses.

With the major indexes trading beneath their down-trending 21-, 50- and 200-day moving averages, the play here is still on the short side.

Still, it has been difficult to get any real traction.

In my opinion, the best thing to do here is trade much less frequently and with much smaller position sizes.

Opportunities are not abundant, so you want to be extremely picky with your setups.

Failure rates are also elevated on both long and short trades, so there is simply no reason to trade large size until positions begin working on balance.

Sell The Rip

Last week, I told you how I was looking for the market to bounce from oversold conditions and then use that strength to sell stocks short against resistance.

That is still my plan of action.

If stocks continue to sell off rapidly, it is best not to chase the action.

Demand good entry points… Demand low-risk setups…

And if they’re not there, keep your powder dry and save your dollars for a better opportunity.

Remember… Cash is a position.

Knowing when not to trade is just as important as knowing when to.

And if you’re not getting odds on your money, why risk it at all?

With all that in mind, here are the setups I am currently watching and were I want to get short…

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Did You Miss the Apex Fortunes Summit?

Before I sign off… Were you able to join me and my colleague Anthony Speciale for the “Apex Fortunes Summit” earlier this week? 

If not, I highly suggest watching the on-demand replay session right here.

Because while 2022 has proven itself to be a bloodbath…

That’s swallowed up nearly $7 trillion in investors’ wealth…

Anthony has personally shown 101 mom and pop traders how to grow their accounts by 382% in as little as four months!

Simply click here now to watch “The Apex Fortunes Summit” and see what you might be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Oct. 3, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here now to watch the on-demand replay of Anthony’s “Apex Fortunes Summit”…

Weekly Update: Fed Adds Fuel to the Market Fire

Well, it was another brutal week for the stock market.

As of Friday morning, the Nasdaq 100 Index was off by 4.6%.

And that’s on top of a 5.8% decline the week before.

To put this selloff into perspective, here is a heatmap of the last 30 days…

S&P 500 Heatmap Last 30 Days – Source: TradingView

There just aren’t many stocks worth buying right now.

Leaders Lacking Strength

Our approach looks for strength – stocks trading near their highs and breaking out from tight consolidation areas.

Now, I keep a “Focus List” of stocks on my radar at all times. These are market-leading stocks with strong setups approaching their ideal buy point.

And as of Friday, almost all of them have fallen apart.

The only stocks holding up (at least for now) are Cal-Maine Foods, Inc. (CALM) and Altus Power, Inc. (AMPS), which I included in last week’s update.

But not all is lost…

Bearish Momentum Building

Often, the best performers from one cycle are the names you want to short when they finally fail.

Look at the biggest winners of 2020…

Zoom Video Communications, Inc. (ZM), Peloton Interactive, Inc. (PTON), Teladoc Health, Inc. (TDOC) and dozens of other former high-flyers have fallen 80% or more from their peak.

Why? Because they have further to fall.

Wall Street gets caught up in the hype and drives leading stocks to insane valuations.

When the company fails to meet the lofty expectations, common sense returns, and the stock tumbles.

So, it makes sense to watch these “broken leaders” for potential short trades.

Personally, I like to sell short when a stock bounces up into resistance. This allows me to use a tighter stop loss and risk less on the trade.

Portfolio Review

Last week’s decline was caused by an ugly consumer price index (CPI) report showing that inflation had not yet peaked.

This week, it was Fed Chairman Jerome Powell who announced another 0.75% interest rate hike to combat inflation, with more to come.

Both occasions caused >90% down volume days in the Nasdaq, which is a sign of extreme selling and Wall Street house-cleaning.

The selling even hit our position in Enphase Energy (ENPH), one of the strongest stocks in the market when we added it to the Trade Tracker on Monday.

On Thursday, our stop was hit, and we recorded a controlled 6.4% loss on the trade.

Our only open position, a half-sized position in McKesson Corporation (MCK), also traded lower today and is nearing our breakeven stop loss level at $336.73.

We already closed half of the position on Aug. 15 for a gain of 9.2%, so we will come out of this trade ahead even if the stop is hit.

This is a great reminder why we sell into strength and take partial profits when we have them, especially when the market is so volatile.

For now, continue to hold the second half of the position in MCK.

Stealth Trades Watchlist

Click here to view this week’s full Watchlist!

But remember that not all of the stocks on our Watchlist are actionable…

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Don’t Miss “The Apex Fortunes Summit”

Before I go, I want to make sure you know about the groundbreaking event Anthony Speciale and I are putting together on Sept. 27 at 1 p.m. ET. 

You see, despite the massive amount of uncertainty and volatility that’s flooding the market…

My good friend and gifted trader Anthony Speciale is still kicking ass…

In fact, in just four months he’s personally shown 101 regular traders just like you how to grow their accounts by 382%.

That’s right… 382%!

Which is far better than the -20% the S&P has plunged to this year. 

But what’s even more interesting…

Anthony says his phenomenal performance is all due to his proprietary “Apex System”…

Which is an advanced algorithm specifically designed to identify the Optimal Entry Point in ANY stock. 

Now, luckily for you…

Since the current state of the market has proven to cause headaches for some traders…

Anthony has generously decided to not only give you a special breakdown of this system…

But also show you how YOU could leverage the “Apex” to turn every $5,000 into $25,000 like clockwork.

Which is why I highly suggest RSVP and secure a free spot to this event…

Because all will be revealed on Tuesday, Sept. 27 at 1 p.m. EST. 

Again, while most traders are out there trying to cover their losses…

Anthony and his small group of traders are THRIVING because of this unique trading approach.

That’s why I guarantee you won’t want to miss it…

Especially once you see all of the SHOCKING details Anthony shares. 

All you have to do is click here now to RSVP and secure your seat for “The Apex Fortunes Summit.

If you have more questions or comments, please send them to support@tradersagency.com.

Live Coaching Session

I hope you’ll join me on Monday, Sept. 26, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here now to RSVP and secure your seat for “The Apex Fortunes Summit.

Weekly Update: Two Stand Out Solar Stocks

What a week…

Just when we thought the craziness had finally come to an end, Tuesday’s CPI numbers showed that inflation was still rising, despite the market’s belief that it had in fact peaked.

The result was a bloodbath like we haven’t seen in years.

The Nasdaq fell 5.5% in a day. And the Dow lost 1276 points.

Even our trade in MCK is rolling over. Luckily, we sold half near the highs and raised our stop to breakeven on the rest (see why risk management is so crucial?).

 Monthly Chart of McKesson Corporation (MCK) – Source: TradingView

This week, all the major indexes fell back to a crucial support level shown below in white on the QQQ.

 Monthly Chart of Invesco QQQ Trust (QQQ) – Source: TradingView

This has been a battleground for stocks since June, so it’s not surprising that this is where the selling finally stopped.

But make no mistake… This is where the rubber meets the road.

As of Friday afternoon, sellers were winning the battle and support was not holding.

Disclosure: I took a short position in QQQ on Thursday with a tight stop above Wednesday’s high.

The Put/Call Ratio has also surged to 1.18.

I expect to see it hit at least 1.40 before this market finds a bottom, so I’m expecting things to get worse before they get better.

Remember that things can change quickly and that works in both directions.

In June, only 13% above stocks were above their respective 50-day moving average.

By August that number was up to 80%… and it’s now back down to 36%.

The only standout this week has been solar…

If there was ever any doubt that solar was leading the market, Tuesday put that to rest.

Top solar names like Enphase Energy (ENPH), First Solar (FSLR) and Sunrun (RUN) all went UP on Tuesday!

And in case you haven’t been paying attention, here’s how those stocks have performed since the June lows:

So, it shouldn’t surprise you the two stocks on my watchlist this week are solar names.

Here are the details…

Invesco Solar ETF (TAN)

I’ve been making my case on solar for months, so I won’t waste my breath explaining why I like the sector.

TAN broke out from a textbook breakout pattern in July and climbed 22% in just two weeks – a huge move for a basket of roughly 40 stocks.

It is now forming another base with resistance near $89.

If TAN can get above there, I am expecting another quick move higher.

Altus Power (AMPS)

AMPS is somewhat of an under-the-radar solar stock.

Unlike most solar companies which make panels, chips, or mounting systems for customer-owned solar energy systems, Altus is an electric utility company whose power comes exclusively from solar generation.

It owns and operates a network of solar farms and sells the power to end users.

I haven’t dug into all the details yet, but I imagine large companies are buying power from them just for the energy credits and whatever tax incentives are currently up for grabs.

With a market capitalization of just under $2 billion, it is a small-cap stock.

AMP is coming out of a cup with handle pattern that began late last year, and the 200-day moving average is finally starting to rise.

This looks like the early stages of a new Stage 2 uptrend which is exactly where I like to buy.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

Weekly Update: Market Still Not Making It Easy

Last week, I pointed out the upside reversal day we saw in the S&P 500 and how I thought the market would bounce from there.

I also discussed the 3,900 area being a key support level for the index.

Stocks broke above this level in late July on bullish volume, which triggered me to call the low in the market and that the bear has finally ended.

What was once resistance often becomes support, so this gave us another reason to expect stocks to move higher for the week.

Daily Chart of S&P 500 Index – Source: TradingView

Things played out about as expected, and the indexes posted a solid gain for the week.

The market is still not making it easy though…

Volatility remains high, especially in the strongest areas of the market where we try to focus.

Take Enphase Energy, Inc. (ENPH) for example, a market-leading solar energy stock…

ENPH has been a big mover showing clear signs of institutional buying.

(We actually scored a nice win on this stock in my Alpha Stocks service.)

This week, the stock attempted another move higher…

Daily Chart of Enphase Energy, Inc. (ENPH) – Source: TradingView

After forming a base for four weeks, Enphase broke out on big volume to make new highs.

Then, on Friday, the stock sucked right back into its base, falling 6% in the first few hours.

Nail Down Profits

In a “healthy” bull market, reversals like this are rare. Trends hold well, and breakouts last several days or weeks.

I bought ENPH in my personal account last week near $278 when it tested support and sold half my position into the highs.

But I dumped the rest Friday morning for a 6% gain when it reversed.

That continues to be the theme of this market, which began last year…

Nail down profits quickly when you have them because the moves often don’t last long.

Nimble traders have done fine in this market. But longer-term investors are having a tough go at it. It is indeed a frustrating environment.

But we must be flexible and adapt our tactics to the conditions of the day.

Portfolio Review

Two of our recent trades have gone the wrong way and resulted in small losses (-9.8% and -4.8%).

Neither of these are crippling, but it’s never fun to lose money.

McKesson Corporation (MCK), on the other hand, has performed beautifully.

Daily Chart of McKesson Corporation (MCK) – Source: TradingView

We already sold half the position near the highs last month.

But if MCK can break out above $375, we could see another leg higher to tack on even more gains in this trade.

If you have not already done so, I recommending taking partial profits on this one just in case the stock fails at the highs.

Stealth Trades Watchlist

Going forward, your Weekly Updates will look a lot more like this one…

They’ll include more information on our current stock recommendations and put less of a focus on our weekly Watchlist.

Don’t worry – The full Watchlist is still available on our website right here!

But it’s important to remember that not all of the stocks on our Watchlist are actionable. 

When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!

Join the Insiders

Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…

Do yourself a favor and check out my latest Insider Effect presentation!

Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.

I talked more about this in my latest presentation, which you can watch at your convenience right here.

I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.

Just click here to learn more about my Insider Effect strategy and see what you could be missing out on…

Live Coaching Session

I hope you’ll join me on Monday, Sept. 12, for our next live Stealth Trades session at 3:00 p.m. ET…

We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.

You need to attend this session to get the most from your subscription!

In the meantime, you can watch the replay of our latest Stealth Trades session right here.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.