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Weekly Update: Institutions Set Their Sights on These Stealth Stocks

Ross Givens on April 8, 2022

Stocks kicked off the week on a positive note, with the S&P 500 rising 0.8% on Monday.

But on Tuesday and Wednesday, the index gave back all of those gains and then some.

The sudden change of direction came as the market started to anticipate more aggressive tightening action from the Federal Reserve.

But as those fears subsided into the later part of the week, the markets found their footing and started to turn up.

Across the board, the technical picture is still somewhat mixed, however…

Moving Average Mess

The S&P is above both its 50-day and 200-day moving averages (MAs), while the Nasdaq 100 is sandwiched in between its major MAs.

The Russell 2000 is in the worst shape of the bunch, as it is trading below both of its major MAs.

Even worse is that the Russell’s 200-day MA is clearly sloping downward now.

All of this comes as only 48% of the stocks in the S&P 500 are trading above their 200-day MAs.

That’s certainly better than the 29% reading we saw in late February, but it still paints a cautious picture overall.

That doesn’t mean there aren’t good opportunities out there, though.

In fact, today I’m bringing you three more stocks that are pushing up against recent highs and could be ready to break out soon.

Continue reading for all the details…

Sterling Check Corp.

Sterling Check Corp. (STER) is a $2.5 billion technology company focused on background and identity verification services.

Here’s how the chart is setting up…

***Daily Chart of Sterling Check Corp. (STER) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 85/100
% Above 52-wk low: 50%
Sales growth: +35%
Return on Equity: 15%
Triple momentum: yes

STER is a recent initial public offering (IPO) from late last year in the later stages of forming its first base.

These IPO bases can be powerful buy points because the stock will be making its first move higher after the initial volatility has been digested from new investors getting positioned in the stock.

The company has posted big sales and earnings growth over the last several quarters, and analysts have been raising their estimates for 2022.

The trigger to buy would be a move above $28.00.

Xenon Pharmaceuticals Inc.

Xenon Pharmaceuticals Inc. (XENE) is a $1.8 billion biotechnology company focused on treating neurological disorders.

Here’s how the chart is setting up…

***Daily Chart of Xenon Pharmaceuticals Inc. (XENE) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 97/100
% Above 52-wk low: 129%
Sales growth: -27%
Return on Equity: N/A
Triple momentum: yes

Xenon is a clinical-stage biotech stock, so fundamentals like sales and earnings aren’t much help in evaluating the trade.

However, the technical picture looks great.

After a big jump in October on positive Phase 2 trial results for its epilepsy drug, shares have consolidated in a tightening pattern from left to right.

I would consider buying if the stock can make new highs.

Ideally, you want to see increased volume on the breakout day as a sign that big institutional investors are behind the buying.

Casella Waste Systems, Inc.

Casella Waste Systems, Inc. (CWST) is a $4.6 billion waste management company serving a variety of customer bases throughout the northeastern United States.

Here’s how the chart is setting up…

***Daily Chart of Casella Waste Systems, Inc. (CWST) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 95/100
% Above 52-wk low: 43%
Sales growth: +21%
Return on Equity: 12%
Triple momentum: yes

CWST made a big move in early March, as the stock soared 32% over 10 consecutive up-days.

To me, this was a clear sign of institutional accumulation.

Since then, shares have retraced slightly and formed a shelf at the $90.00 mark.

If the “big guns” are still buying, we should see another leg higher and a move on to new highs.

I’d consider buying if CWST breaks $90.00.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Searching for Pockets of Strength

Ross Givens on April 1, 2022

Following a solid, two-week rebound rally for the market, the major indexes cooled off a bit this week.

I’ve told you in recent weeks that I was beginning to increase my exposure to stocks again, but I am being selective about it.

Here’s why…

The S&P 500 is back above both its 50-day and 200-day moving averages (MAs), which is a good sign.

The 50-day has also started to flatten out and should turn higher in the coming days.

However, the Nasdaq 100 and the Russell 2000 are still sandwiched between their 50-day and 200-day MAs, so the technical picture isn’t completely bullish by any means.

And even though the S&P is above its major MAs, only about 50% of stocks in the index are trading above their own 200-day MAs.

I’d like to see a bit more participation before increasing my exposure further.

Still, there are numerous pockets of the market showing strength.

In recent Weekly Updates, I’ve highlighted energy, steel, basic materials and shipping groups as well as agricultural stocks that got a boost from the ongoing Russia-Ukraine conflict.

These groups continue to thrive in a market that is largely in neutral territory, so this week we are going to stick with what’s working…

Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P. (ARLP) is a $2 billion natural resource company focused on producing and providing coal to utility and industrial companies.

Here’s how the stock chart is setting up…

***Daily Chart of Alliance Resource Partners, L.P. (ARLP) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 98/100
% Above 52-wk low: 188%
Sales growth: +29%
Return on Equity: 16%
Triple momentum: yes

Coal stocks are booming, and ARLP has the best setup of the bunch.

While price has drifted higher, pullbacks have shallowed from 25% down to 8%.

And the shares have been trading in a tight range in the $15-$16 area for the last two weeks.

Look for a breakout above $16 to buy. Then, place a stop at $14.60 for protection.

Danaos Corporation

Danaos Corporation (DAC) is a $2.2 billion, Greece-based marine shipping and transport company with a fleet of over 70 containerships.

Here’s how the stock chart is setting up…

***Daily Chart of Danaos Corporation (DAC) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 97/100
% Above 52-wk low: 129%
Sales growth: +80%
Return on Equity: 23%
Triple momentum: yes

I added Danaos to the Watchlist a few weeks ago, and I still like how it’s setting up.

I noted then that it had just completed a seven-month “cup and handle” pattern.

But DAC has now formed another smaller cup formation with a low-risk entry point.

Consider buying on a move above $107.50 with a stop near the $99.00 level.

Yamana Gold Inc.

Yamana Gold Inc. (AUY) is a $5.5 billion Canadian precious metals exploration and production company focused primarily on gold and silver.

Here’s how the stock chart is setting up…

***Daily Chart of Yamana Gold Inc. (AUY) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 95/100
% Above 52-wk low: 51%
Sales growth: +9%
Return on Equity: 7%
Triple momentum: yes

With inflation at 40-year highs, it is a wonder why gold prices are not higher than they are today.

Since the start of the pandemic, the “yellow metal” has taken a backseat to new alternative assets like BTC, but that trend appears to be shifting.

While risk here is slightly higher given that it is a lower-priced stock, Yamana is showing a lot of strength over the last few months.

I think it is worth a shot on a move to new highs above $5.80. But for protection, use a stop 10% below the entry price.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Why Agricultural Stocks Are All The Rage

Ross Givens on March 25, 2022

Many are saying that globalization is coming to a screeching halt. Russia’s actions in Ukraine have undone three decades of progress.

Nations have become dependent on one another for trade. But the last few months have shown how vulnerable that can leave us (if the Suez Canal blockage didn’t do that already last year).

As President Biden said this week, “It’s going to be real. The price of these sanctions is not just imposed upon Russia; it’s imposed upon an awful lot of countries as well, including European countries and our country as well.”

He continued, saying, “Both Russia and Ukraine have been the breadbasket of Europe in terms of wheat, for example.”

The White House is now talking with national security, agriculture and Treasury officials to figure out how to prevent supply shortages and price hikes.

The president has also stated the United States needs to produce more food and become less reliant on foreign imports.

And this trend for increased American agriculture output is readily apparent in the stock market…

Agricultural stocks are booming, so that is where we are going to focus our efforts in this week’s Watchlist.

Read on for all the details…

ICL Group Ltd

ICL Group Ltd (ICL) is a $15.6 billion specialty minerals and chemicals company based out of Tel Aviv, Israel.

The stock dipped with the rest of the market at the start of the year but is now pushing towards new multi-year highs.

Here’s how the chart is setting up…

***Daily Chart of ICL Group Ltd (ICL) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 98/100
% Above 52-wk low: 108%
Sales growth: +55%
Return on Equity: 19%
Triple momentum: yes

Look at the volume bars at the bottom of this chart, and you will notice a huge increase in trading volume over the last several weeks.

The stock topped out at $12.21, retraced slightly and then shot right back to its highs.

I think ICL is a buy at new highs with a sell stop below last week’s low.

Bunge Limited

Bunge Limited (BG) is a $16.5 billion agribusiness and food company based out of St. Louis, Missouri.

The stock has been on a tear since the middle of 2021 and continues to push to new 52-week highs.

Here’s how the chart is setting up…

***Daily Chart of Bunge Limited (BG) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 96/100
% Above 52-wk low: 60%
Sales growth: +32%
Return on Equity: 29%
Triple momentum: yes

Bunge is one of the top-rated stocks in the agricultural sector.

It has been advancing beautifully and even made new highs while the market was making lows – a clear sign of leadership.

Price is a bit extended right now, but look for a pullback to buy in the $110-$112 area.

The Andersons, Inc.

The Andersons, Inc. (ANDE) is a smaller, $1.8 billion agricultural company focused on grain storage operations as well as fertilizer and other farm products.

Like Bunge, ANDE is also making a series of new 52-week highs.

Here’s how the chart is setting up…

***Daily Chart of*** ***The Andersons, Inc. (ANDE) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 98/100
% Above 52-wk low: 108%
Sales growth: +51%
Return on Equity: 10%
Triple momentum: yes

With a Surge Score of 98/100, ANDE is outperforming 98% of all other stocks.

As with our other two stocks, volume has surged in a big way over the last four to five weeks, which is a sign that investors are flocking to the agricultural sector.

Shares are up 23% over the last two weeks, so I would prefer to see a small pullback before buying in order to keep risk below 10%.

Others may choose to simply buy at the current price.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Is The Low Finally In?

Ross Givens on March 18, 2022

It’s been a rough year for the market so far, but things may be starting to turn around.

I’ve been waiting for a follow-through day to confirm that the low may finally be in for the market.

And this week, we got one.

As we discussed last week, I define a follow-through day as a 2%+ gain in the cash index in a day on increased volume over the previous session.

That previous session doesn’t have to be an up day, but the follow-through day must be up 2% or more from previous day’s close. And the volume must be higher than the previous day.

Well, the S&P 500 index closed higher by 2.24% this past Wednesday on increased volume.

While a follow-through day is not a guarantee that stocks have bottomed, it greatly increases the chances of the market rallying from here.

Personally, I am increasing my exposure in stocks from 10% to around 25%, and I will quickly buy more if my trades show gains.

Don’t Make It Complicated

I try not to over-complicate it… If breakouts work and my next three to four trades are profitable, I will increase my size on the next four or five, and so on.

Right now, we are seeing the same stocks show the most strength, including mainly the energy, steel, basic materials and shipping groups.

Most of these sectors are likely to perform well with high inflation, so it is not entirely surprising that this is where money is flowing at the moment.

The major indexes are still below their 50- and 200-day moving averages, so we don’t want to dive head-first back into the market with all of our capital.

But if the low has been made, conditions will continue to improve, and more stocks will begin making new highs.

For now, we’ll take things one day at a time with an eye on this week’s Watchlist stocks…

Danaos Corporation

Danaos Corporation (DAC) is a $2.2 billion, Greece-based marine shipping and transport company.

Here’s how the chart is setting up…

And here’s how the stock is setting up with my Stealth System…

Surge score: 98/100
% Above 52-wk low: 143%
Sales growth: +80%
Return on Equity: 23%
Triple momentum: yes

Shipping stocks are showing a lot of strength in this market.

Many of them are already extended past a reasonable buy point, but Danaos is just breaking out of a new cup with handle pattern.

DAC has been something of a “Cinderella story” over the last two years.

In March 2020, it traded for $2.50 a share. As of this writing on Friday, the stock is trading at the $104 level – a gain of over 4,000%.

As long as DAC doesn’t get too far past the breakout level, I think this is a good buy here.

Crane Co.

Crane Co. (CR) is a $6 billion manufacturer of industrial products for a wide range of markets, including commercial and military aerospace, oil and gas and even wastewater applications.

Here’s how the chart is setting up…

***Daily Chart of Crane Co. (CR) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 90/100
% Above 52-wk low: 27%
Sales growth: +13%
Return on Equity: 23%
Triple momentum: yes

I added Crane to the Watchlist last week, noting its tight 14% trading range over the last five months.

Shares continued to show strength this week, and the stock’s surge score improved from 85/100 to 90/100.

CR is now inches from new high ground, and I think it is a buy once it clears $109.

Place a stop near the 200-day moving average in case it fails.

Reliance Steel & Aluminum Co.

Reliance Steel & Aluminum Co. (RS) is an $11.6 billion metals provider for a variety of customers, including those in the aerospace, transportation and even semiconductor industries.

Here’s how the chart is setting up…

***Daily Chart of Reliance Steel & Aluminum Co. (RS) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System…

Surge score: 94/100
% Above 52-wk low: 40%
Sales growth: +87%
Return on Equity: 25%
Triple momentum: yes

Steel stocks continue to perform well, and Reliance is the best name in the group.

It has strong earnings and sales growth, high relative strength and a big return on equity – all the signs of a top-tier stock.

After making a nice move higher in February, RS has been consolidating all month in a nice and tight 8% range.

Consider buying new highs with a stop at the swing low near $178.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Bulls Getting Bullied as Large Funds Liquidate

Ross Givens on March 11, 2022

We continue to see the same action in the markets that we saw the week before.

Selling is the dominating force right now, with only a few pockets of the market seeing strength.

Those groups are almost exclusively energy-focused, such as those in oil, coal and even solar companies.

I’m bringing you one of those companies in today’s Watchlist…

But what’s behind the selling is the fact that hedge funds are seeing record redemptions.

In other words, investors are pulling their money and saying, “no more!”

This is forcing those large funds to liquidate positions, which is sending stocks lower, especially the mega-cap names they loaded up on over the last couple years.

That’s why we are seeing the greatest declines in the big, “innovative” companies that saw huge gains in 2020 and 2021.

The selling is also now leading the S&P 500 index toward a so-called “death cross,” where the 50-day moving average crosses below the 200-day moving average.

***Daily Chart of S&P 500 Index with “Death Crosses” – Source: TradingView***

This bearish crossover indicates that the bearish short-term momentum is overtaking the bullish longer-term momentum.

Now, I don’t put too much emphasis on bullish or bearish moving average crossovers, but I wanted to mention it today because we are likely to see one occur for the first time since March of 2020.

At that time, the crossover actually occurred after the market had bottomed, but in previous instances, the death crosses did precede further selling.

Waiting for Follow-Through

As I mentioned in the March 7 live class, we need to see a “follow-through day” in either the S&P 500 or Nasdaq index before having any chance of seeing a bottom.

If you’re not familiar with the term, I define a follow-through day as a 2%+ gain in the cash index in a day on increased volume over the previous session.

That previous session doesn’t have to be an up day, but the follow-through day must be up 2% or more from previous day’s close. And the volume must be higher than the previous day.

So far, we have not seen that. And until we do, it would be foolish to get aggressive with long ideas.

Remember, a trader’s job in a bear market is capital preservation. You want to maintain your capital, keep losses small or stay out of the market altogether.

This way, when the good times return (which they could at any time), you will have maximum capital with which to seize big opportunities.

With all that in mind, we’re not going to try to catch any “falling knives” this week.

Instead, we’re looking for our usual set ups, which means stocks that are holding up well in this down market and are primed to break out of longer-term consolidation periods.

Crane Co.

Crane Co. (CR) is a $6 billion manufacturer of industrial products for a wide range of markets, including commercial and military aerospace, oil and gas and even wastewater applications.

Here’s how the chart is setting up…

***Weekly Chart of Crane Co. (CR) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System…

Surge score: 85/100
% Above 52-wk low: 21%
Sales growth: +13%
Triple momentum: yes

Crane has traded in an incredibly tight 14% range for almost five months now.

Even a raging bear market has not been able to drive this stock lower.

As you can see in the weekly chart above, shares have traded sideways for almost a year.

Once CR breaks out of this range and gets into new high territory, this one could make a substantial move to the upside.

Regeneron Pharmaceuticals, Inc.

Regeneron Pharmaceuticals, Inc. (REGN) is a $70 billion biotechnology and healthcare company focused on creating medicines to treat a variety of different diseases.

Here’s how the chart is setting up…

***Weekly Chart of Regeneron Pharmaceuticals, Inc. (REGN) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System…

Surge score: 86/100
% Above 52-wk low: 42%
Sales growth: +104%
Triple momentum: yes

Regeneron is a name we added to the Watchlist back in late January, but it never broke out.

The stock finally appears to be finding buyers, as it has broken out of a long “pendant” formation.

This one is buyable here at the current price.

And given the extended consolidation period, you only need to risk about 6% on the trade with a stop beneath the swing low at $598.

Natural Resource Partners L.P.

Natural Resource Partners L.P. (NRP) is a $490 million natural resources company that collects royalties from leasing out its portfolio of mineral properties.

Here’s how the chart is setting up…

***Weekly Chart of Natural Resource Partners L.P. (NRP) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System…

Surge score: 98/100
% Above 52-wk low: 175%
Sales growth: +90%
Triple momentum: yes

The entire energy sector is red hot right now.

Oil is getting all the press, but coal stocks are surging as well.

Case in point, Natural Resource Partners.

Technically, a series of higher highs and higher lows outline a beautiful uptrend with no signs of slowing down.

I would consider buying at new highs with an 8% stop.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Stealth Stocks Lead The Market

Ross Givens on March 4, 2022

I don’t care much for most fundamentals… But one thing I do care about is sentiment.

And rising geopolitical tensions continued to suppress investor appetite for buying stocks again this week.

Technically speaking, while the major indexes are easily holding above the prior week’s lows, the S&P 500, Nasdaq 100 and Russell 2000 are all below their 50- and 200-day moving averages (MAs).

As regular readers know, this is not a bullish sign.

The 50-day MAs for the Nasdaq and Russell have even crossed below their respective 200-day MAs.

The S&P is on course to do the same thing unless it sees a swift reversal.

All that said, and unlike in recent weeks, I am starting to see more constructive setups, particularly in the energy sector.

I have two of those Watchlist plays for you today, along with another in one of the world’s leading semiconductor companies that looks to be setting up for another long-term bullish move…

Micron Technology, Inc.

Micron Technology, Inc. (MU) is the $93 billion semiconductor manufacturer that makes memory and other storage devices for a wide range of applications.

The shares were on the decline for most of last year but have recovered and started to push the prior highs again.

Here’s how the chart is setting up…

***Weekly Chart of Micron Technology, Inc. (MU) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 87/100
% Above 52-wk low: 38%
Sales growth: +33%
Triple momentum: yes

This is a longer-term setup that could deliver longer-term gains in the form of a larger, multi-month move.

The chart above is using weekly bars to show more historical data.

MU began forming a “cup and handle” base pattern in January 2021 that is now working to complete itself.

If the stock breaks out to new high ground, consider buying MU shares with a stop at the 50-day simple moving average, currently near the $90 mark.

Cenovus Energy Inc.

Cenovus Energy Inc. (CVE) is a $31 billion oil and gas producer based out of Calgary, Canada.

The shares have been on the ascent since the start of the year and look primed for a possible breakout.

Here’s how the chart is setting up…

***Daily Chart of Cenovus Energy Inc. (CVE) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 87/100
% Above 52-wk low: 116%
Sales growth: +287%
Triple momentum: yes

With crude prices topping $115 per barrel, it is no surprise that a lot of energy names are still showing up as the top performers on my scans.

CVE is compressing nicely from left to right in a verified Stage 2 uptrend.

Look for a strong move through the $16 area to buy.

Then, place a sell stop beneath the swing low at $14.60 for protection.

Northern Oil and Gas, Inc.

Northern Oil and Gas, Inc. (NOG) is another oil and gas producer with a much smaller market cap of just around $2.1 billion.

Shares have been rising strongly since November 2020 but are just getting back to the highs of last year.

Here’s how the chart is setting up…

***Weekly Chart of Northern Oil and Gas, Inc. (NOG) — Source: TradingView***

And here’s how the stock is setting up with my Stealth System:

Surge score: 98/100
% Above 52-wk low: 126%
Sales growth: +537%
Triple momentum: no

I’ve chosen to show the weekly chart for NOG above as well.

The stock is completing a five-month base pattern and trying to breakout to the upside.

Shares broke out last week before pulling back slightly.

At the time of this writing, NOG is trading at $26.50 – right near the breakout point.

As long as price does not get extended by Monday morning, I think this can be bought here with a stop at $23.30.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: The Market Demands Stealth Trades for More Gains

Ross Givens on February 25, 2022

The stock market continues to be a tough place to just place broad bets and hope for positive results.

The leading stock indexes are all down heavily so far this year led by the Nasdaq Composite Index and followed by both the S&P 500 Index and even the classic Dow Jones Industrial Average.

This means that index trading isn’t doing anything so far but losing you money – unless you might be short.

Instead, here at Stealth Trades, I’m all about digging out the right stocks that might not be well-known – but they are in the right industries and sectors with revenue gains, prices trading above their moving averages and of course great surge scores among my other factors that I use to find the best stocks for you to trade.

This week’s new Stealth Trades Watchlist of stocks includes three companies that are leaders in the major industries that continue to be highly in demand in the US market and around the globe.

Energy, shipping and agricultural products – these are what are all in demand resulting in more sales, more earnings and most importantly, more trading with buyers seeking the best in these sectors.

Here are my best Stealth Trades for this week…

SandRidge Energy (SD)

***SandRidge Energy Inc. Price & Technical Analysis – Source TradingView***

• Surge score: 99/100

• % Above 52-wk low: 246%

• Sales growth: +68%

• Triple momentum: yes

Energy continues to be the strongest sector in the market, and Russia’s invasion of the Ukraine is only making it stronger.

SD is compressing nicely into an early entry point on a breakout above 12.90.

Navios Maritime Partners (NMM)

***Navios Maritime Partners Price & Technical Analysis – Source TradingView***

• Surge score: 96/100

• % Above 52-wk low: 55%

• Sales growth: +287%

• Triple momentum: no

Navios Maritime is a dry bulk transport stock that is bucking the trend of the overall market. While the major indexes are down big over the last several weeks, NMM is up 40% over the last month.

A break above 33.00 could be a nice entry point to buy for another leg higher.

Andersons (ANDE)

***The Andersons Inc. Price & Technical Analysis – Source TradingView***

• Surge score: 97/100

• % Above 52-wk low: 72%

• Sales growth: +51%

• Triple momentum: no

The Andersons Inc. is a leading agricultural company focused on grain storage operations as well as fertilizer and other farm products. It is a textbook breakout pattern that fired up last week. The stock is surging higher on above-average volume under the worst possible market conditions.

The stock price is extended at the moment. But if we get a pullback near the $41 mark, this is definitely worth a buy. A clean breakout on consecutive days of above-average buying volume is exactly what we like to see in a healthy move.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Setting the Stage for the Next Wave Higher

Ross Givens on February 18, 2022

Editor’s Note: All major U.S. stock markets are closed on Monday, Feb. 21, 2022, in observance of President’s Day.

The market continues to show weakness, with all major indexes down on the week.

Looking at our recent picks from the weekly Stealth Trades Watchlist, the best performers so far have been shorts.

That tells me everything I need to know about the current environment.

With the markets closed on Monday and a potential Russian invasion of Ukraine, I am 100% cash going into the long weekend.

I continue to urge caution and trading small, or not at all, until conditions improve.

Facebook (FB), Netflix (NFLX), Paypal (PYPL), Square (SQ), the ARK Innovation ETF (ARKK) and dozens of other mega-cap names are down 50%-60% or more.

This is not the time to be getting aggressive.

Your time is better spent looking for stocks that are holding up well right now and making or nearing new highs.

These will likely be the new leaders of the next bull market, which could emerge at any time.

As long-time readers know, bear markets always set the stage for the next wave of super-high-performance stocks.

Antero Resources Corporation

Antero Resources Corporation (AR) is a $7 billion oil and gas exploration and production company operating out of the Appalachian Basin and Upper Devonian Shale.

Here’s how the chart is setting up…

***Daily Chart of Antero Resources Corporation (AR) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 98/100
% Above 52-wk low: 189%
Sales growth: +83%
Triple momentum: yes

Fundamentally, Antero is showing accelerating quarterly growth in both sales and earnings.

Shares are also making new highs while the markets are selling off, which is a clear sign of relative strength.

Oil and gas names remain strong, and AR is one of a small handful breaking out from a buyable position.

Zeta Global Holdings Corp.

Zeta Global Holdings Corp. (ZETA) is a $2 billion cloud software company that aims to provide corporate clients with consumer intelligence and marketing automation solutions.

Here’s how the chart is setting up…

***Daily Chart of Zeta Global Holdings Corp. (ZETA) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 98/100
% Above 52-wk low: 119%
Sales growth: +21%
Triple momentum: yes

Zeta is a recent initial public offering (IPO) showing a lot of strength on good volume over the last several weeks.

After a 58% surge in just 13 days, price is consolidating in a tight range.

If ZETA can break out into new high ground, this one is worth the 9% downside risk.

Note that earnings are due on Feb. 23, after the close. I suggest waiting until Thursday morning before considering a buy.

As long as ZETA does not gap up big, this could be a buy in the mid-$12 range.

SMART Global Holdings, Inc.

SMART Global Holdings, Inc. (SGH) is a $1.4 billion semiconductor company that designs and manufactures memory and computing modules for a range of technology applications.

Here’s how the chart is setting up…

***Daily Chart of SMART Global Holdings, Inc. (SGH) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 90/100
% Above 52-wk low: 39%
Sales growth: +61%
Triple momentum: no

SGH is a less traditional setup designed to get in early on the turn higher.

The stock recently broke its downtrend and is now forming a small base in the $26-$29 range.

It also held its crucial 200-day moving average, which is still sloping upward.

Volume has also dried up in a big way, which could be a sign that selling has subsided.

I’m looking for a break above $29.45, preferably on volume of one million shares or more.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Spreading Our Bets in an Unsure Market

Ross Givens on February 11, 2022

This week was another choppy one for stocks.

The major indexes continued to bounce back and forth within a tight range, showing indecision about which way they will go next.

On Thursday morning, markets initially made a strong rally but reversed hard in the afternoon.

Perhaps more importantly, the reversal happened on greater-than-average volume.

I am still seeing way too much volume on recent down days to conclude that the selloff is over and it is once again time to go long in size.

Therefore, we are spreading our bets this week between long and short trades.

This way, we’ll get a little bit of exposure on each side so that we’re prepared for whatever the market may throw at us.

Personally, I am expecting another leg lower. But that is just a feeling and in no way something to base your trade decisions on.

As always, I will follow the market and let it dictate my trades.

Walmart Inc. (Short)

First up is a bearish idea in Walmart Inc. (WMT), the massive $376 billion discount retailer.

Here’s how the chart is setting up…

***Weekly Chart of Walmart Inc. (WMT) — Source: TC2000***

And here’s how the stock is scoring on my Stealth System:

Surge score: 45/100
% Above 52-wk low: 8%
Sales growth: +4%
Triple momentum: yes (short)

Despite success with its grocery pickup and delivery business, the stock looks very toppy.

As you can see in the weekly chart above, WMT has made a series of lower highs for the last six months.

The $134 level seems to be the line in the sand. If this level fails, look for a quick move to the downside.

I would consider shorting WMT either on a break below $134 or on a bounce up into the $140 range.

I would close the short trade if price breaks above the white downtrend line shown on the chart.

SilverBow Resources, Inc.

SilverBow Resources, Inc. (SBOW) is a $400 million oil exploration and production company.

I added SBOW to the Watchlist last week, but it has not yet broken out.

Here’s how the chart is setting up…

***Daily Chart of SilverBow Resources, Inc. (SBOW) — Source: TC2000***

And here’s how the stock is scoring on my Stealth System:

Surge score: 99/100
% Above 52-wk low: 331%
Sales growth: +117%
Triple momentum: yes

After a dip early in the week, shares snapped back Thursday and Friday, showing good “tennis ball action” strength.

Unfortunately, the low of the shakeout move in January is too far away to use for a stop.

Therefore, I suggest using an arbitrary stop loss of somewhere around 8%.

Look for a move above $25.55 as the entry trigger.

Signet Jewelers Limited

Signet Jewelers Limited (SIG) is a $4.4 billion luxury goods retailer with recognizable brands like Kay Jewelers and Zales Jewelers.

Here’s how the chart is setting up…

***Daily Chart of Signet Jewelers Limited (SIG) — Source: TC2000***

And here’s how the stock is scoring on my Stealth System:

Surge score: 94/100
% Above 52-wk low: 136%
Sales growth: +18%
Triple momentum: yes

SIG is an interesting setup in the consumer cyclical space.

This is one of the only areas where breakouts are getting traction (along with energy and a few regional banks).

Last week, the stock broke the downtrend line and found support against the 200-day moving average.

It is now tightening up sideways with resistance near the $88 area.

Look for a breakout above the green horizontal resistance line on the chart.

We need to see above-average volume for confirmation.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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

Weekly Update: Where We’re Looking for Solid Setups

Ross Givens on February 4, 2022

Although the major indexes made little progress last week, volatility is subsiding.

And we are beginning to see some stocks find traction in their breakouts.

Several names (primarily oil and gas stocks) made healthy moves higher from constructive setups.

For example, Continental Resources, Inc. (CLR), which was on last week’s Watchlist, broke out last Friday on high volume.

Shares were up 8% in the first hour of trading, although they did fade a bit into the afternoon session.

And in last week’s members-only Alpha Stocks class, we reviewed Arch Resources, Inc. (ARCH), which broke out this past Tuesday.

The stock jumped as much as 11.8% in just two days before pulling back.

If these breakouts can hold up and advance further, we may begin to see a healthier environment in which breakouts have a high rate of success.

But I still need to see follow-through before getting aggressive on the long side.

Now, I mentioned last week that most of the names with good technical setups and tight pivot areas are small banks and energy stocks.

Yes, energy stocks carry risks related to the price of oil and natural gas, and banks don’t always make the strongest breakouts.

However, the three new stocks on this week’s Watchlist fall into those two categories, as those are simply where the best potential trades are currently setting up.

And as long as we can keep our stops relatively tight, we should be able to navigate these setups in a profitable way.

Weatherford International plc

First up is Weatherford International plc (WFRD), a $2.3 billion oilfield services company operating out of Houston, Texas.

This company provides the equipment and services that oil exploration and production companies need for their drilling and other operations.

Here’s how the chart is setting up…

***Daily Chart of Weatherford International plc (WFRD) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 99/100
% Above 52-wk low: 160%
Sales growth: +17%
Triple momentum: yes

The setup in WFRD is almost identical to last week’s chart of Continental Resources, Inc.

It is forming a textbook cup and handle pattern and showing tremendous strength in an otherwise weak market.

Notice how the relative strength line has turned up and made a new high.

If price tightens up for a few more days, the setup will look even stronger.

SilverBow Resources, Inc.

SilverBow Resources, Inc. (SBOW) is one of those oil exploration and production companies I just alluded to above.

This $400 million company is also based in Houston, and it focuses on acquiring and developing its land assets in the Eagle Ford shale region of South Texas.

Here’s how the chart is setting up…

And here’s how the stock is setting up with my Stealth System:

Surge score: 99/100
% Above 52-wk low: 331%
Sales growth: +117%
Triple momentum: yes

SBOW is setting up for a “cheat entry” near the middle of its cup formation.

Unfortunately, the low of the shakeout move in January is too far away to use for a stop.

Therefore, I suggest using an arbitrary stop loss of somewhere around 6%-8%.

Look for a move above $25.55 as the entry trigger.

Preferred Bank

Preferred Bank (PFBC) is a $1.2 billion independent commercial bank operating out of Los Angeles, California.

Its operations are primarily focused on providing banking services to small and mid-sized businesses as well as other entrepreneurs, real estate developers and high net worth individuals.

Here’s how the chart is setting up:

***Daily Chart of Preferred Bank (PFBC) — Source: TC2000***

And here’s how the stock is setting up with my Stealth System:

Surge score: 96/100
% Above 52-wk low: 63%
Sales growth: +3%
Triple momentum: yes

I don’t often trade these small local bank stocks, but there is a proliferation of setups across this sector.

When I sort my stock scans by relative strength, the list is almost exclusively energy and bank stocks. So, I’ve decided to give this one a try.

PFBC kept its selloff contained to just 7% while most of the market was melting down last month.

Shares also bounced back quickly to their highs, which is a good sign of strength underlying accumulation.

The setup is pretty straightforward… Buy a new high, and place a stop beneath the swing low.

Live Coaching Session

Monday, at 3:00 p.m. EDT, we’ll be hosting our regular weekly coaching session for Stealth Trades.

We’ll send you a login reminder that morning, just so you don’t forget.

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