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Weekly Update: How To Survive 2022’s Bloody Start

Ross Givens on January 28, 2022

It has been a bloody start to the 2022 market year with heavy declines across the board. The Russell 2000 fell into bear market territory this week, and the Nasdaq came within 1% of a bear market.

Some believe the low was made on Monday. Others insist we have further to fall. It is really impossible to say at this point. But in either case, volatility remains high. So, you must be precise to make low-risk trades with tight stops even in a healthy market.

Under the current conditions, stop losses are getting hit at a higher-than-usual rate due to the wild intraday swings. On Monday, the Dow fell over 1,100 points by lunch, then reversed all the way back to close positive on the day. This is not an ideal environment for risk-averse traders.

However, those playing the long game with plans of profiting in the markets for many years to come should welcome this correction and a potential bear market.

These selloffs come on occasion and are in fact necessary to remove the froth from the market, shake out the over-leveraged holders, bring down valuations and allow stocks to set up in fresh patterns.

And it is here where we find the new market leaders – names that can generate huge alpha with big returns in a short period of time.

The Impact…

Right now, very few stocks are setting up in buyable positions. Even big-name staples like Amazon (AMZN) and Google (GOOGL) are trading well below their 200-day moving averages – a key line in the sand for investors in search of strength.

Most of the names with good technical setups and tight pivot areas are small banks, which generally do not make large advances in price, and energy stocks, which carry a mountain of other risks related to the price of oil and natural gas.

The vast majority of stocks on my watchlist (usually 40-50 names at any given time) have been removed over the last few weeks.

Constructive pivot areas have broken down thanks to large drops in the prices of most publicly traded stocks.

These equities will need to set up again in a new pattern and form another tight pivot area at the edge of accumulation from which to buy in order to maintain a low-risk approach.

I’ve included three ideas with this week’s Watchlist. But, personally, I am not holding any positions right now.

I may attempt to buy one or two of these if they continue to set up constructively, but I will do so with very small size and only add to them if I see the trades working.

Continental Resources, Inc.

First up today is Continental Resources, Inc. (CLR).

Here’s how the chart is setting up:

***Daily Chart of Continental Resources, Inc. (CLR) — Source: TC2000***

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

Surge score: 99/100

% Above 52-wk low: 181%
Sales growth: +94%
Triple momentum: yes

CLR, the $19 billion dollar oil and gas company, is forming a textbook “cup” base with a depth of 27%.

The stock also showed tremendous strength in an otherwise weak market by quickly recovering to make new highs on Wednesday.

I would prefer to see five to 10 days of tight trading on lower-than-average volume to form a small “handle” on the right side. This would create a buyable pivot area.

New York City REIT, Inc.

Next up on today’s list we have the real estate investment trust New York City REIT, Inc. (NYC).

NYC owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City, particularly on the island of Manhattan.

Here’s how the chart is setting up:

***Daily Chart of New York City REIT Inc. (NYC) — Source: TC2000***

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

Surge score: 93/100

% Above 52-wk low: 86%
Sales growth: -7%
Triple momentum: no

NYC does not meet all of our criteria for a typical breakout pattern. But NYC is something completely different – a “high tight flag.”

After advancing more than 100% in just one week of trading, the real estate investment trust has contained pullbacks to less than 20%, an impressive feat in any market but even more so now.

The rules for trading a high tight flag are simple – as long as it doesn’t breach the 20% retracement level (yellow box on chart, also known as the “flag”), the buy trigger is a move 10 cents above the high.

These are higher risk, higher reward trade setups.

Regeneron Pharmaceuticals, Inc.

Finally, we come to the American biotechnology company, Regeneron Pharmaceuticals, Inc. (REGN).

Here’s how the chart is setting up:

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

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

Surge score: 88/100
% Above 52-wk low: 37%
Sales growth: +51%
Triple momentum: yes

REGN is a big stock capable of making big moves. When it first broke out in 2010, shares advanced by 1,848% over the next five years.

Compared with that meteoric run, REGN has essentially laid dormant ever since.

Above is a weekly chart to show the big picture. It is a pattern within a pattern – a “cup with handle” inside another “cup with handle.”

And despite big losses in most mega-cap names, REGN has kept retracements to a minimum and showed signs of what might be heavy support volume last week.

Look for a break of the latest handle and consider adding at new all-time highs. I will discuss this setup and how I plan to trade it in Monday’s live training session for members.

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: Three Stealth Shorts for a Further Drawdown

Ross Givens on January 21, 2022

As anyone keeping track of the movements of Wall Street can tell you, we saw a bit of a market correction this week.

This correction was accelerated with all the major indexes deep in the red.

As of Friday morning, the Russell 200 was down 6.7% on the week, the S&P 500 was down 4.1% and the Nasdaq was off by 5.4%.

And again, that’s just this week!

Now, it can take a few weeks for stocks to reposition themselves and come back into tight, low-risk ranges where we can buy.

And even after the market calms down, we’ll need to be patient for it to begin showing some strength again.

Switching to Short

Each index is now trading below its long-term 200-day moving average, which is certainly a bearish sign for stocks.

We are rapidly approaching the bear market threshold, and I am finding no stocks in buyable positions.

Therefore, I honestly see no reason to put money at risk on the long side under these current conditions.

So instead, I’m going to do something a little bit different…

Today, I’m bringing you three short trade ideas for anyone who may be interested in playing the other side of the market.

Charter Communications, Inc. (Short)

Charter Communications, Inc. (CHTR) is a $100 billion media conglomerate that has been trending lower since September.

Here’s how the chart is setting up:

***Daily Chart of Charter Communications, Inc. (CHTR) — Source: TC2000***

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

Surge score: 25/100

% Above 52-wk low: 1%
Sales growth: +9.2%
Triple momentum: yes (short)

A series of successive lower lows and lower highs show a textbook downtrend that will likely only accelerate under the current conditions.

The goal with stocks like this is to sell short into the bounces higher.

CHTR tends to dump off further any time it touches the 50-day moving average, so traders looking to bet against the company could consider shorting the stock on the next bounce up to the $625 area.

Be sure to use a stop, and don’t risk more than 10% on the trade.

iShares Russell 2000 ETF (Short)

The iShares Russell 2000 ETF (IWM) is the ETF that tracks the Russell 2000 Index of US listed small-cap companies and their stocks.

Here’s how the chart is setting up (Note that this is a weekly chart):

***Weekly Chart of iShares Russell 2000 ETF (IWM) — Source: TC2000***

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

Surge score: 34/100

% Above 52-wk low: 1%
Sales growth: N/A
Triple momentum: yes (short)

The Russell has been lagging for over a year as small-cap stocks have gone nowhere.

I’ve been watching the $208 level for several months, which was breached last week to make a new 52-week low.

Traders can consider getting short IWM here or on a small bounce up to the $205-$210 range.

Herbalife Nutrition Ltd. (Short)

Herbalife Nutrition Ltd. (HLF) is a $5 billion provider of nutritional supplements for weight management and fitness as well as cosmetic products.

Here’s how the chart is setting up (Note that this is a weekly chart):

***Weekly Chart of Herbalife Nutrition Ltd. (HLF) — Source: TC2000***

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

Surge score: 43/100
% Above 52-wk low: 23%
Sales growth: -6.0%
Triple momentum: yes (short)

Herbalife has long been a highly volatile stock, and this is the kind of name that can break down in a big way during bear markets.

The weekly chart above shows an 18-month consolidation period that broke down at the end of 2021.

HLF has bounced back over the last several weeks but continued selling across the board could send the stock on another leg lower.

Traders may consider selling Herbalife short here with a tight stop above the October highs.

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 to Keep Your Eye On

Ross Givens on January 14, 2022

After another rocky week, we’re back with another Watchlist Update.

A week ago, I commented that things in this market have been so bad that it’s been difficult to find and bring you my usual three trade ideas.

And once again, after a period of heavy selling like we’ve experienced so far in the early days of 2022…

It can take a few weeks for stocks to reposition themselves and come back into tight, low-risk ranges where we can buy.

And even after the market calms down, we’ll need to be patient for it to begin showing some strength again.

We saw a few days of strength this week, but it’s still been relatively difficult to find good setups.

That being said, my determination was resilient.

While we’re keeping Mueller Industries (MLI) on the list from last week, I ran my stock scans, and I believe I’ve found yet another three stocks that offer promising opportunities for us in the week ahead!

Mueller Industries

Mueller Industries (MLI) is an industrial manufacturer whose principal business segments include piping systems, climate products and industrial metals.

Headquartered in Nashville, Tennessee, Mueller has grown into a global presence and has built a well-earned reputation for providing high-quality products through various operations and brands.

Here’s how the chart is setting up:

***Daily Chart of Mueller Industries (MLI) — Source: TC2000***

And here’s how the stock is setting up with my Stock Surge Indicator (SSI):

Surge score: 96/100
% Above 52-wk low: 75%
Sales growth: +58%
Triple momentum: yes

We added MLI to the watchlist last week, but the stock has not yet triggered. However, it continues to hold up well in a weak market.

The stock has fallen slightly over the last week but still looks ripe for a fresh breakout higher with shares currently hovering around the 50-day moving average in a 6% range.

This stock offers investors big sales growth, big earnings growth, high relative strength and has absolutely nothing to do with the weak technology sector.

Therefore, if it can break through the $61 area, I will look to buy.

Robert Half International Inc.

Robert Half International Inc. (RHI) is a global staffing firm for the accounting and finance industry.

They are a member of the S&P 500, and are credited as being the world’s first and largest accounting and finance staffing firm, with over 345 locations worldwide.

With $6 billion in annual sales, they are undoubtedly the dominant player in the space.

Here’s how the chart is setting up:

***Daily Chart of Robert Half International Inc. (RHI) — Source: TC2000***

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

Surge score: 94/100
% Above 52-wk low: 81%
Sales growth: +44%
Triple momentum: yes

RHI’s earnings climbed 63.9% over the last 12 months and a whopping 128% in the most recent quarter.

That is a great sign for shareholders and a tempting prospect for those looking to invest in a promising growth opportunity.

RHI appears to be setting up an early “cheat” entry at $114.00.

Now, when taking a cheat entry, I sometimes like to go in with half of my usual position size before the breakout is confirmed.

For example, if a full position size is usually 100 shares, I would only take a cheat entry on 50 shares with the stock still under resistance.

Then, when the pattern completes, I will buy the other half at the official entry point.

This way, you have a profit cushion when the stock breaks out, allowing you to finance your stop loss and create a risk-free trade.

With RHI, we only need to risk about 6% to see if it makes a quick move back to its highs and beyond.

Deere & Company

Deere & Company (DE), owners of the John Deere brand, is an American corporation that manufactures all kinds of agricultural machinery.

In 2019, it was listed as 87th in America’s Fortune 500 ranking and made it to 329th in the global ranking.

Here’s how the chart is setting up:

***Daily Chart of Deere and Company (DE) — Source: TC2000***

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

Surge score: 84/100
% Above 52-wk low: 34%
Sales growth: +16.4%
Triple momentum: no

Today, DE is attempting to complete a large 10-month base. Once completed, it could lead to a nice trend higher.

Taking a look at the chart, DE’s stock has laid dormant for most of the last year, but it is now approaching its highs and tightening nicely.

Therefore, I’m recommending we all look for a breakout higher on sizable volume in the days to come.

As another option, you could play this as a longer-term trade by using the weekly chart.

That would remove some of the daily noise, but it would require a larger stop near $336 to risk about 13%.

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: Trade With Caution & Wait for the Right Setups

Ross Givens on January 7, 2022

This week’s market bloodbath wiped out a lot of good setups…

To be honest, it’s been so bad, I had a hard time even finding my usual three trade ideas this week.

After a period of heavy selling like we’ve experienced so far in the early days of 2022, it can take a few weeks for stocks to reposition themselves and come back into tight, low-risk ranges where we can buy.

And even after the market calms down, we’ll need to be patient for the market to begin showing some strength again.

Trade with Caution

Taking all this into account, my advice is not to sit on the sidelines…

I did end up finding three solid setups for this week’s Watchlist, including one short trade.

But I think it would be smart to decrease your exposure to the market right now.

Trade smaller sizes than usual until this market has a chance to calm down.

And with a little luck and a lot of know-how, our strategy mixed with the right stocks should help keep us afloat during these volatile times.

Mueller Industries

Mueller Industries (MLI) is an industrial manufacturer whose principal business segments include piping systems, climate products and industrial metals.

Headquartered in Nashville, Tennessee, Mueller has grown into a global presence and has built a well-earned reputation for providing high-quality products through various operations and brands.

Here’s how the chart is setting up:

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

Surge score: 96/100
% Above 52-wk low: 75%
Sales growth: +58%
Triple momentum: yes

In the past week, Mueller Industries remained one of the few to not sell off with the rest of the market and whose setup, in fact, actually managed to strengthen!

Recently, price action has tightened into a narrow range that looks ripe for a fresh breakout higher.

This stock appears to be offering investors big sales growth, big earnings growth, high relative strength and has absolutely nothing to do with technology.

Therefore, if the market can firm up, MLI looks to have a good chance of moving higher in the near future.

Ultra Clean Holdings Inc.

Next up on today’s list is Ultra Clean Holdings Inc. (UCTT), which designs, engineers and manufactures production tools, modules and subsystems for the semiconductor and display capital equipment markets in the United States and internationally.

Here’s how the chart is setting up:

***Daily Chart of Ultra Clean Holdings Inc (UCTT) — Source: TC2000***

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

Surge score: 93/100
% Above 52-wk low: 62%
Sales growth: +52%
Triple momentum: no

UCTT looked great going into last week… So much so that I even added it to the Buy Alert list for my premium Alpha Stocks service.

However, like most stocks, it pulled back over the last several days and broke the low of the pivot area, never hitting our buy trigger.

Stepping back to take a look, the set up still looks to be strong but would require a 9% stop loss, which for me is too much in this uncertain environment.

Therefore, I suggest keeping this one on your radar to see if it tightens up again over the next couple weeks.

The breakout could still turn out to be a strong one since shares will be even more consolidated into strong hands after this shakeout. If that happens, we’re going to want to be there.

iShares Russell 2000 Growth ETF

Finally, I want to take a look at the iShares Russell 2000 Growth ETF (IWO).

IWO is a growth-focused exchange-traded fund (ETF) that represents the two areas seeing the most underperformance right now… Small-cap stocks and growth stocks.

Here’s how the chart is setting up:

***Daily Chart of iShares Russell 2000 Growth ETF (IWO) — Source: TC2000***

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

Surge score: 33/100
% Above 52-wk low: 0%
Sales growth: N/A
Triple momentum: yes (short)

As regular readers know, growth stocks have come under some pretty heavy selling pressure over the last couple weeks.

That’s leading many hedge funds to start selling the tech sector heavier than they have in more than 10 years.

Add to that the persistent underperformance of small cap stocks found in the Russell 2000, and you have a strong candidate for a short investment.

Therefore, I’m suggesting you consider selling IWO short if it breaks the big support level near $275.

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: Bull Storm Into 2022 at Record Highs

Ross Givens on December 31, 2021

US markets ended the year on a high note, to be sure.

The benchmark S&P 500 index broke above the 4,800 level this week for the first time ever.

It’s now approaching a 30% gain for the year.

And it’s a similar figure for the Nasdaq 100.

But zooming out to a wider range of smaller stocks, the Russell 2000 index is up only about half that amount for the year at 16.5%.

That’s still a respectable gain, and it’s been a great trading range over the past year with a lot of opportunities.

But it points back to what I’ve been telling you lately…

The performance of large-cap and mega-cap stocks is masking a stealth correction throughout much of the market.

Yes, there will be plenty of great trading opportunities in 2022… And I’ll be here alerting you to many of them.

But I continue to recommend cautious trading because I don’t want you to get complacent as we head into the new year.

With that in mind, let’s get right to this week’s Watchlist stocks…

Lee Enterprises, Inc.

Lee Enterprises, Inc. (LEE) is a small, $232 million publishing company that produces print and digital newspapers and provides advertising and marketing services.

After surging 119% in 22 days, I put LEE on the Watchlist last week.

Here’s how the chart is setting up:

Daily Chart of Lee Enterprises, Inc. (LEE) -- Source: TC2000 — ***Daily Chart of Lee Enterprises, Inc. (LEE) — Source: TC2000***

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

Surge score: 99/100
% Above 52-wk low: 235%
Sales growth: +1%
Triple momentum: yes

It also met the criteria for a “high tight flag.”

Since then, the stock has stayed within its retracement zone, so I’m going to keep it on our list to see if it can break out higher.

Ideally, we want the stock to stay in the “flag” portion for two to three weeks or more.

This way we can make sure the profit-taking has been absorbed.

Typically, traders use the low of the retracement zone as where to place a stop loss.

But if price continues to tighten, you could use the swing low of the final retracement.

Alphabet Inc.

Alphabet Inc. (GOOGL) is the 1.9 trillion parent holding company for technology platforms Google, Android, YouTube and many other leading tech brands.

The fact that a nearly $2 trillion company is still growing sales by 41% per quarter is mind-blowing.

Here’s how the chart is setting up:

Daily Chart of Alphabet Inc. (GOOGL) -- Source: TC2000 — ***Daily Chart of Alphabet Inc. (GOOGL) — Source: TC2000***

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

Surge score: 92/100
% Above 52-wk low: 70%
Sales growth: +41%
Triple momentum: yes

The company grew profits by 99%, 189% and 82% in the last three quarters, respectively, showing there may be no limit to how big Google can become.

Shares have been consolidating for the last few months, and we now have a tight pivot range where we can buy to risk just 6% on the trade.

Driven Brands Holdings Inc.

Driven Brands Holdings Inc. (DRVN) is a $5.6 billion automotive services provider for retail and commercial customers.

It does paint and body work, repairs, oil changes and other general services, and it is also a distributor of various aftermarket auto parts.

Here’s how the chart is setting up:

Daily Chart of Driven Brands (DRVN) -- Source: TC2000 — ***Daily Chart of Driven Brands (DRVN) — Source: TC2000***

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

Surge score: 87/100
% Above 52-wk low: 49%
Sales growth: +39%
Triple momentum: yes

As a stock, DRVN is a recent initial public offering (IPO) trying to complete its first base as a public company.

The stock tried to break out earlier this month, but it appears to be finding sellers near the $34 area where the stock peaked back in January.

If we can get through that area into new high ground, there is a good chance the stock will run higher.

Last week’s low needs to hold in order for this to remain a low-risk trade, however.

If the stock breaks down, I will wait for a new entry point.

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 Take Over as Bears Hibernate

Ross Givens on December 23, 2021

It seems as though the bears got an early start to the holiday season…

For the prior abbreviated trading week, the S&P 500 index gained 2.4% to notch new all-time daily and weekly closing highs.

And if the index can end this week anywhere above 4,606, it will also set a new all-time monthly closing high.

But that doesn’t tell the full story…

You see, the biggest daily and weekly rallies typically occur during bear market rallies.

Furthermore, several big-name stocks have suffered huge losses in recent weeks, which is definitely not characteristic of a healthy bull market.

To name just a few examples…

Snap Inc. (SNAP) is down 41% from its 2021 high.

DraftKings Inc. (DKNG) is down 60% from its 2021 high.

And Peloton Interactive, Inc. (PTON) is down a whopping 77% from its 2021 high!

What Does This Mean for Traders?

First, it means that you shouldn’t only focus on the performance of the major stock indexes.

Instead, watch how individual stocks are performing.

Sure, the S&P is at new highs, but the Russell 2000 small-cap index is still down nearly 9% from its recent high.

And growth stock indexes like the IBD Innovator 50 (FFTY) is 14.5% off its high.

So, next time you take a look at the major indexes…

Remember that they’re dominated by a small handful of mega-cap stocks and aren’t necessarily giving you the full picture of the market.

With that said, however, I’ve recently outlined several bullish pockets of strength within the market.

And I have three more great opportunities to present to you today.

Let’s get right to them…

Lee Enterprises, Inc.

Lee Enterprises, Inc. (LEE) is a small, $232 million publishing company that produces print and digital newspapers and provides advertising and marketing services.

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: 235%
Sales growth: +1%
Triple momentum: yes

LEE stock surged 119% in just 22 days and is now setting up in a high tight flag pattern.

To complete the pattern, shares must not retrace more than 20%. The buy point is new highs above $41.00.

Typically, traders use the low of the retracement zone as where to place a stop loss.

But if price continues to tighten, you could use the swing low of the final retracement.

Moody’s Corporation

Moody’s Corporation (MCO) is a major $74 billion risk assessment firm that publishes credit ratings for companies in the United States and worldwide.

Here’s how the chart is setting up:

Daily Chart of Moody's Corporation (MCO) -- Source: TC2000 — ***Daily Chart of Moody’s Corporation (MCO) — Source: TC2000***

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

Surge score: 87/100
% Above 52-wk low: 52%
Sales growth: +13%
Triple momentum: yes

Moody’s stock made a big move in the first half of 2021.

Shares have been consolidating to form a base for most of the last six months and now look primed to break out higher.

Retracements have shallowed to a nice and tight 4% range, allowing for a very low-risk entry point.

Price has not been able to get above $400.00 for a few weeks, but I would use $402.00 as a buy point.

That gives a bit of additional confirmation by trading above the highest closing price in November.

Intercontinental Exchange, Inc.

Intercontinental Exchange, Inc. (ICE) is the $76 billion operator of market exchanges, clearing houses and listings venues that some of you have likely heard of or even traded with before.

Here’s how the chart is setting up:

Daily Chart of Intercontinental Exchange, Inc. (ICE) -- Source: TC2000 — ***Daily Chart of Intercontinental Exchange, Inc. (ICE) — Source: TC2000***

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

Surge score: 88/100
% Above 52-wk low: 25%
Sales growth: +18%
Triple momentum: yes

I added ICE to the Watchlist last week, but shares have not yet broken through our resistance level.

Last week’s market weakness added a small 4% shakeout move, which has only made the setup look better to me.

Additionally, we can now use last week’s low as the stop, which lowers the risk on this trade.

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 Managing Risk is Crucial Right Now

Ross Givens on December 17, 2021

Is this the start of a real market downturn?

Maybe it is… Maybe it’s not.

As I’ve noted recently, the market has been extremely weak under the surface for months now…

And it’s certainly possible that the indexes and big name technology stocks could finally succumb to that and head lower.

We’re not seeing that happen just yet, as the S&P 500 index is only off of its all-time high by about 2%.

But the fact is that most breakouts are not working right now.

Instead of seeing the follow-through move we would normally expect, breakout stocks are getting sold off before they’re able to gain any real traction.

The stocks are sound, and the setups look good. But it seems to me that institutions are selling into the strength.

Now’s the Time to Manage Risk

I don’t mean for this to sound scary, but I would not be upset to see a 10%-20% correction to “reset” the market.

This would set up a lot of fresh new opportunities and clear the way for another leg up on this bull market.

For now, we’ll continue to abide by our trading rules for the new Watchlist stocks below.

However, you always want to be aware of how much risk you’re taking.

If you feel uncomfortable with this kind of up and down volatility, consider using smaller position sizes or setting tighter stops.

And when markets are shaky, don’t hesitate to take some profits and lock in a gain if you have one.

JB Hunt Transport Services

JB Hunt Transport Services (JBHT) is a $21 billion logistics services company focused on trucks and transporting stuff via those trucks.

And as you know, moving stuff via trucks is a major market in high demand right now.

Here’s how the chart is setting up:

Daily Chart of JB Hunt Transport Services (JBHT) -- Source: TC2000 — ***Daily Chart of JB Hunt Transport Services (JBHT) — Source: TC2000***

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

Surge score: 91/100
% Above 52-wk low: 46%
Sales growth: +27%
Triple momentum: yes

After a healthy run in the first half of the year, JBHT has taken a breath to consolidate near the $200 level.

A shakeout move down to $185 likely hit some stops, so the stock should be even further consolidated into stronger institutional hands.

Look to buy on a breakout to new high ground.

Republic Services, Inc.

Republic Services, Inc. (RSG) is a $43 billion waste management company focused on serving municipal and residential customers.

The other side of the business processes and sells cardboard containers, newsprint, aluminum, glass and other materials.

Here’s how the chart is setting up:

Daily Chart of Republic Services, Inc. (RSG) -- Source: TC2000 — ***Daily Chart of Republic Services, Inc. (RSG) — Source: TC2000***

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

Surge score: 93/100
% Above 52-wk low: 57%
Sales growth: +14%
Triple momentum: yes

Sales growth of 14% isn’t huge for most companies. But in the waste management sector, it is fairly substantial.

After a one-day pop higher on big volume at the end of October, RSG has tightened into a low-risk 5% range.

RSG broke out of two similar bases this year, each leading to solid short-term gains.

Intercontinental Exchange, Inc.

Intercontinental Exchange, Inc. (ICE) is the $76 billion operator of market exchanges, clearing houses and listings venues that some of you have likely heard of or even traded with before.

Here’s how the chart is setting up:

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

Surge score: 88/100
% Above 52-wk low: 25%
Sales growth: +18%
Triple momentum: yes

Levi Strauss made a fortune selling pick, shovels and denim to hopeful miners in the gold rush of the 1800s.

He found a way to profit without ever making a bet on whether or not he would find gold.

The same thing goes for exchanges like ICE. Futures contracts on crude, gold, natural gas, electricity and agricultural products all trade on the Intercontinental Exchange. And the company gets its fees whether traders win or lose.

We have an opportunity for an early entry on ICE if the stock can break above Thursday’s highs while only risking about 6% on the trade.

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: Market Bulls Battle Their Way Back

Ross Givens on December 10, 2021

A week ago, market bulls were still reeling from a sharp Black Friday selloff that took the S&P 500 down 2.3%.

Over the following three sessions, the index saw two more relatively big drops of 1.9% and 1.2%.

Traders panicked…

The S&P 500 Volatility Index (VIX) spiked over the 35 level, the highest reading since early February.

Volatility Retreats as Bears Flee

As regular readers know, the VIX is known as the market’s “fear gauge.”

It tends to rise when the market falls, and it tends to fall when the market rises.

Now, sure, there are legitimate reasons to worry about the stock market right now…

As I’ve been telling you, individual stock participation is low, which could be a warning sign.

There’s also still the potential for inflationary pressures to hit stocks further.

But the move in the VIX was just plain excessive for what was ultimately just a 5% drop in the market over the course of two weeks.

***Daily Chart of S&P 500 Volatility Index (VIX) — Source: TradingView***

As you can see in the chart above, the fear gauge has pulled back sharply as the panic has subsided and the S&P has regained nearly all of its lost ground.

In fact, as of this writing, the S&P 500 is on the verge of setting a new all-time weekly closing high. That would be a very bullish sign.

But it doesn’t mean that a rising tide is going to lift all boats, however.

Remember… We are approaching the end of the year, when fund managers have to report their holdings to investors.

The last thing a manager wants is for new investors in the fund to learn they were holding underperforming stocks.

Managers tend to sell their worst performers so that they are off the books for next year’s prospectus.

This causes the stocks that have performed the worst during the course of the year to sell off even further in December.

So, I continue to stress that this is not a time to be overly aggressive, especially if you are new to trading.

Instead, we are going to focus on finding good setups with signs of institutional buying and low-risk entry points.

And from the research I’ve done this week, I’ve come up with three of those setups for you today.

Applied Materials, Inc.

Applied Materials, Inc. (AMAT) is in the semiconductor wafer market. This is ground zero for semiconductor manufacturers that absolutely can’t make another chip without wafers.

I’m sure you’ve heard about the current chip shortage and high demand… AMAT is where the chips start, so all of the unfilled chip orders means more orders for the company’s wafers.

Here’s how the chart is setting up:

***Daily Chart of Applied Materials, Inc. (AMAT) — Source: TC2000***

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

Surge score: 92/100
% Above 52-wk low: 75%
MFI reading: 36
Sales growth: +31%
Triple momentum: yes

After forming a huge base that started in April, AMAT finally cleared its $145 resistance level.

But recent weakness gave us a retest of that price on a shallow pullback to what has now become support.

Look to buy on new highs with about a 6% risk on the trade.

Amphastar Pharmaceuticals, Inc.

Amphastar Pharmaceuticals, Inc. (AMPH) is a $1 billion specialty pharmaceutical company focused on both generic and proprietary injectable, inhalation and intranasal products for a variety of ailments.

Here’s how the chart is setting up:

***Weekly Chart of Amphastar Pharmaceuticals, Inc. (AMPH) — Source: TC2000***

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

Surge score: 83/100
% Above 52-wk low: 78%
MFI reading: 71
Sales growth: +34%
Triple momentum: yes

I’ve chosen to use a weekly chart of AMPH above rather than a daily chart to show the size of the enormous base formation.

The stock quickly recovered from last year’s COVID selloff, but the shares have gone nowhere ever since.

A new 52-week high would be a strong buy signal for what could be a longer-term move.

Civitas Resources, Inc.

Civitas Resources, Inc. (CIVI) is a $5 billion oil and gas exploration and production company.

It has operations on half a million net acres in the Denver-Julesburg Basin and produces roughly 160,000 barrels of oil equivalent a day.

Here’s how the chart is setting up:

***Daily Chart of Civitas Resources, Inc. (CIVI) — Source: TC2000***

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

Surge score: 97/100
% Above 52-wk low: 207%
MFI reading: 63
Sales growth: +223%
Triple momentum: yes

CIVI is seeing huge triple-digit sales and earnings growth over the last two quarters.

The energy sector has been the top-performing market segment in 2021, and Civitas Resources is an example of that market-leading strength.

This stock makes fairly severe pullbacks, with the last one notching a decline of around 20%.

I’m looking for shares to tighten up further from here, but I’d be a buyer at new highs whether it happens this week or six weeks from now.

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: Five Stealth Stocks Set to Soar in a Shaky Market

Ross Givens on December 3, 2021

The bears are always worried about something it seems…

First, it was inflation and rising interest rates.

Then, it was earnings season.

And to end the Thanksgiving holiday week, there was a new boogie man on Wall Street…

A new variant of the coronavirus spooked traders who sent the S&P 500 index down 2.3% on Black Friday.

While there were some intermittent bounces last week, the index ended lower again by another 1.9%.

We’re also seeing this fear show up in the S&P 500 Volatility Index (VIX), which has spiked over 70% in just two weeks.

The VIX is now at its highest level since March 2021, which sounds bad.

But here’s the thing… The S&P 500 is only off of its recent all-time high by about 5%.

If you zoom out on the charts, this drop is barely noticeable, and the longer-term trend for the broad market is still very much intact.

I am currently taking a more short-term, cautious approach to my trading right now, which I think is a prudent move while uncertainty is elevated.

However, that doesn’t mean there aren’t opportunities for the bulls, and I have five new ones to share with you today.

Permian Basin Royalty Trust

The Permian Basin Royalty Trust (PBT) is a small-cap ($415 million) oil trust that receives ongoing royalty interests from oil- and gas-producing properties in Texas.

Here’s how the chart is setting up:

Daily Chart of Permian Basin Royalty Trust (PBT) -- Source: TradingView — ***Daily Chart of Permian Basin Royalty Trust (PBT) — Source: TradingView***

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

Surge score: 99/100
% Above 52-wk low: 196%
MFI reading: 82
Sales growth: +146%
Triple momentum: yes

After a textbook breakout in late September, shares jumped 63% in just three weeks on heavy volume.

Price action then tightened up again near the $9 level and began another leg higher.

But market weakness surrounding a new COVID variant and falling energy prices has given investors the chance to buy PBT on a pullback at the initial breakout level.

Those looking for additional confirmation may choose to wait until shares break above $9.25.

CorVel Corporation

CorVel Corporation (CRVL) is a financial services company that provides workers’ compensation, auto, liability and health solutions for corporate clients and government agencies.

Here’s how the chart is setting up:

Daily Chart of CorVel Corporation (CRVL) -- Source: TradingView — ***Daily Chart of CorVel Corporation (CRVL) — Source: TradingView***

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

Surge score: 97/100
% Above 52-wk low: 106%
MFI reading: 62
Sales growth: +16%
Triple momentum: yes

CorVel isn’t a “hot stock” by most metrics, but shares have quietly doubled in 2021.

I’m not surprised. With a small float of only 8.9 million shares, it doesn’t take too much demand to send the stock price higher.

CRVL has been consolidating for the last nine weeks, and last week’s market selloff likely shook out some weak-handed holders.

If the stock breaks above $200 on increased volume, we could easily see another quick leg higher.

Ford Motor Company

Ford Motor Company (F), the $76 billion American auto manufacturer, has been an absolute monster this year – currently up 129% year-to-date.

Here’s how the chart is setting up:

Daily Chart of Ford Motor Company (F) -- Source: TradingView — ***Daily Chart of Ford Motor Company (F) — Source: TradingView***

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

Surge score: 97/100
% Above 52-wk low: 130%
MFI reading: 55
Sales growth: -5%
Triple momentum: yes

While most of the legacy automakers have failed to keep pace with electric vehicle (EV) manufacturers, Ford’s focus on a next-generation electric fleet has investors excited.

F has tightened up over the last five weeks and held its ground well despite overall market weakness.

It trades in a narrow 8% range, giving traders the chance for a low-risk entry point at new highs.

For safety, I would sell if it trades below $19.00.

Toll Brothers, Inc.

Toll Brothers, Inc. (TOL) is the $8 billion home builder, which should continue to benefit greatly from the current housing boom in the United States.

Here’s how the chart is setting up:

Daily Chart of Toll Brothers, Inc. (TOL) -- Source: TradingView — ***Daily Chart of Toll Brothers, Inc. (TOL) — Source: TradingView***

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

Surge score: 90/100
% Above 52-wk low: 64.1%
MFI reading: 60
Sales growth: +24%
Triple momentum: yes

Toll Brothers is coming out of a beautiful seven-month-long base.

Pullbacks compressed from 24% down to a risk-friendly 6%.

Shares broke out on Thursday, then immediately squatted back to the $67 area on Friday morning to give traders a second chance at this entry.

I suggest buying here with a stop below the swing low at $63.10.

Century Communities, Inc.

Century Communities, Inc. (CCS) is another, smaller homebuilder with a very similar technical setup to Toll Brothers.

Here’s how the chart is setting up:

***Daily Chart of Century Communities, Inc. (CCS) — Source: TradingView***

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

Surge score: 91/100
% Above 52-wk low: 88.6%
MFI reading: 65
Sales growth: +21%
Triple momentum: yes

We have a classic compression pattern with decreasing volatility, shallower pullbacks and periods of below-average volume.

Earnings are up big this year, and analysts are expecting another 10% increase in 2022, which I expect will be even higher.

Shares of CCS also broke out on Thursday, but if you can get it for less than $77, you can work a stop at $69.35 and still risk less than 10% on the trade.

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 log in 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: These Stealth Stocks Are Set Up for a Fearful Market

Ross Givens on November 26, 2021

I’m putting together this list the morning of Friday, Nov. 26.

At the market open, the Dow was down over 850 points on renewed COVID fears.

A new heavily mutated coronavirus strain was discovered in South Africa, and the big but unsubstantiated fear is that it could be resistant to current vaccines.

Even though the market is only open until 1:00 p.m. ET today, it is possible we could see heavy selling if institutions begin liquidating on the news.

I continue to remain cautious in this market with such low stock participation.

Furthermore, I’m seeing fewer ideal setups in buyable positions.

In fact, I actually took a short position in the SPDR S&P 500 ETF Trust (SPY), an exchange-traded fund that tracks the S&P 500 index on Friday, with a tight stop above the high of the day.

If the market sells off even further on Friday, investors may consider staying out of the market for the next few days until we see how things play out.

Before we get to our Watchlist, if you’re a new member, be sure to watch the training videos on our website, including How to Find Stealth Trades and What are Stealth Trades?

You can also view our full Watchlist here and our Trade Tracker here.

Now, let’s get to the newest stocks on the Stealth Trades Watchlist:

Amazon.com, Inc.

Amazon.com, Inc. (AMZN) is the ubiquitous online retailer offering customers nearly anything they could ever want delivered straight to their doors.

The company also runs its lucrative Amazon Web Services (AWS) platform focused on cloud computing services.

Here’s how the chart is setting up:

Daily Chart of Amazon.com, Inc. (AMZN) -- Source: TradingView — ***Daily Chart of Amazon.com, Inc. (AMZN) — Source: TradingView***

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

Surge score: 70/100
% Above 52-wk low: 25.4%
MFI reading: 61
Sales growth: +15%
Triple momentum: yes

AMZN tried to break out last week but failed to follow through. It squatted back to the resistance level but quickly reversed back to the upside.

Renewed COVID fears have this stock up on Friday while most of the market is down.

A short-term pop in work-from-home stocks is expected, and AMZN is a good way to play it.

Traders now have the chance to buy AMZN near the original buy zone and work a tight stop to risk less than 5% on the trade.

The Real Brokerage Inc.

The Real Brokerage Inc. (REAX) is a $650 million real estate brokerage company based in Canada but with operations in the United States as well.

Here’s how the chart is setting up:

Daily Chart of The Real Brokerage Inc. (REAX) -- Source: TradingView — ***Daily Chart of The Real Brokerage Inc. (REAX) — Source: TradingView***

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

Surge score: 96/100
% Above 52-wk low: 421%
MFI reading: 87
Sales growth: +885%
Triple momentum: yes

REAX formed a high tight flag pattern and quickly emerged to new highs after only six trading days.

The company is experiencing parabolic growth, and investors clearly have a big appetite for this stock.

As long as price does not get extended, the stock is buyable with a stop at $3.23.

Albertsons Companies, Inc.

Albertsons Companies, Inc. (ACI) is the $16 billion food and drug store operator, with 2,277 stores and 1,727 pharmacies along with in-store branded coffee shops and adjacent fuel centers.

Here’s how the chart is setting up:

Daily Chart of Albertsons Companies, Inc. (ACI) -- Source: TradingView — ***Daily Chart of Albertsons Companies, Inc. (ACI) — Source: TradingView***

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

Surge score: 97/100
% Above 52-wk low: 144%
MFI reading: 42
Sales growth: +5%
Triple momentum: yes

I typically like to see higher sales growth than what Albertsons posted last quarter.

However, the company beat estimates in each of the last three quarters, and analysts are slowly raising their projections for the company.

Plus, the stock is actually up Friday morning in an ugly market.

We have a textbook consolidation pattern with pullbacks compressing down to a nice and tight 6%.

I would be comfortable buying here with a stop beneath the swing low.

On Holding AG

On Holding AG (ONON) is the $13 billion, Switzerland-based performance shoe and sportswear brand that makes the incredibly popular On Cloud shoe line.

The company went public in September and recently emerged from its initial IPO base.

Here’s how the chart is setting up:

Daily Chart of On Holding AG (ONON) -- Source: TradingView — ***Daily Chart of On Holding AG (ONON) — Source: TradingView***

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

Surge score: 94/100
% Above 52-wk low: 49.4%
MFI reading: 66
Sales growth: +66%
Triple momentum: yes

Retail stocks like this can make huge runs, especially when they are growing sales at nearly 100% per quarter like ONON.

Take a look at a chart of Crocs, Inc. (CROX) if you want to see what is possible.

After breaking out on Nov. 16, shares pulled back to the initial breakout area.

They bounced well on Wednesday but retraced a bit Friday morning on market weakness.

This gives traders the opportunity for a pullback buy in the $41-$42 area.

You could play this one with a fairly tight stop at $39.25 or $35.50 if you want to give it more room to potentially get in on a larger 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 log in 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