Tag: Crane

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.

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…

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…

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… 

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