Permian Basin Royalty Trust Archives - Stealth Trades Premium Content

Weekly Update: Not Out of the Woods Yet

Ross Givens on July 8, 2022

As I write this on Friday morning, the Nasdaq is up roughly 2% for the week.

The S&P 500 recorded four positive days in a row to start the week, and we are beginning to see signs of institutional buying.

Thursday was an 88% up-volume day, meaning 88% of the volume was on the advance.

I’ve been waiting for a 90% up-day to signal that the low is in, and this was darn close…

Graphical user interface, chart

Description automatically generated — ***Daily Chart of S&P 500 Index with Market Breadth & Volume Indicators – Source: TradingView***

The same areas of the market I have been highlighting over the last few weeks continue to show strength – mainly biotechnology and solar stocks.

If you took the trade in Chinook Therapeutics, Inc. (KDNY) from last week’s Stealth Trades Watchlist, you should have seen a nice quick gain as the stock surged 13% in just four days.

Alpha Stocks members took the trade and already locked in partial profits.

Stay Cautious

Make no mistake – The market is not out of the woods yet, and this may end up being nothing more than a tradeable rally.

But I have started to increase exposure in my personal account.

If I see decent gains in these pilot positions, I will continue to buy news setups and increase my size accordingly.

Now, take a look at the daily chart of the Invesco QQQ Trust (QQQ) below, which tracks the Nasdaq index…

Chart, histogram

Description automatically generated — ***Daily Chart of Invesco QQQ Trust (QQQ) – Source: TradingView***

This week’s positive action prevented the index from making another lower low.

Should it take out the previous week’s high, this downtrend could finally break.

Join Me on Monday

Oil, natural gas, copper and most other commodities have fallen sharply over the last few weeks.

This is potentially a good sign for stocks as it could be a signal that inflation is finally subsiding.

As an investor, it is important to separate the economy from the stock market.

Remember… The market is a discounting mechanism. All assumptions about the macroeconomic picture are largely already priced in.

The market will bottom as soon as signs point to conditions improving. But it typically takes many months or even years before a recession ends.

With that in mind, I hope you’ll join me on Monday afternoon for our Stealth Trades Live Class at 3:00 p.m. ET…

I’m going to be outlining our plan for dealing with a market environment like this, and we’ll take a look at our Watchlist stocks and other potential ideas in more detail.

So again, please join me right here on Monday at 3:00 p.m. ET!

For now, we are indeed in a tradeable rally, and I have three new long trades to share with you this week…

Sierra Wireless, Inc. (Long Idea)

Sierra Wireless, Inc. (SWIR) is a Canadian designer of wireless and embedded modules, gateways and routers.

Computer networking stocks are not showing strength as a group, but SWIR has a Surge Score of 99/100.

In other words, it is outperforming 99% of stocks.

Earnings and sales were both up big last quarter, and analysts are calling for further growth through 2023.

TradingView Chart — ***Daily Chart of Sierra Wireless, Inc. (SWIR) – Source: TradingView***

Surge score: 99/100

% Above 52-wk low: 86%
Sales growth: +60%
Return on Equity: N/A
Triple momentum: yes

The chart looks great as well. The up/down volume ratio is incredibly bullish at 1.86, and institutional buyers are flocking to the stock.

SWIR has formed a pivot at the $25 level.

In a perfect world, it would trade sideways here for a few days to absorb any sellers near the highs.

That would make it an even higher conviction buy for me.

But demand for this stock is high. Consider buying on new highs with a 10% stop.

Seagen Inc. (Long Idea)

Seagen Inc. (SGEN) is a biotech that has come ripping off the lows.

Shares are up 70% in just six weeks, with almost no pullbacks along the way.

Surge score: 96/100

% Above 52-wk low: 71%
Sales growth: +28%
Return on Equity: N/A
Triple momentum: yes

At this point, price has been consolidating for almost two weeks near the $180 level.

There is also a fundamental catalyst in play…

Reuters reported that Merck & Co., Inc. (MRK) is in advanced talks to buy Seagen at a price above $200 per share – more than 10% above where it trades today.

Consider buying SGEN above $182 with a stop at $167.

United Therapeutics Corporation (Long Idea)

United Therapeutics Corporation (UTHR) is another biotech stock showing tremendous strength as the general market is coming off its lows.

The stock is just entering Stage 2 and currently trades just 1% off its all-time high.

Price action is tightening, pullbacks are becoming shallow and volume dried up for several days.

This is exactly what we want to see pre-breakout…

Surge score: 97/100
% Above 52-wk low: 51%
Sales growth: +22%
Return on Equity: 20%
Triple momentum: no

The fundamentals are also strong… Unlike many biotech stocks, which have limited revenue and negative earnings, United Therapeutics is showing solid growth in both areas.

Earnings and sales grew by 44% and 22%, respectively, in the most recent quarter.

This stock is a potential market leader that could make a large advance if the market has indeed found the bottom.

Consider buying UTHR here with a stop at $220.

One Last Chance to Join Alpha Stocks

If you’ve been struggling in this wild stock market environment, with the major indexes down double-digits and many of last year’s leading stocks down over 50%…

Consider checking out my Alpha Stocks trading service, which focuses on only the very best stock trading opportunities — both on the long side as stocks rise and on the short side when markets are crashing.

Alpha Stocks recently recorded a 21.6% gain on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged…

As well as a gain of 21.3% in just 15 days in Permian Basin Royalty Trust (PBT).

Last Wednesday, we closed another winner in ProPhase Labs, Inc. (PRPH) for a two-day gain of 5.8%.

And as I alluded to above, we just closed out another two-day winner on a third of Chinook Therapeutics, Inc. (KDNY) for a gain of 8.4%.

Of course, we also hold a live members-only session every Monday so that subscribers can ask questions and get guidance about our trades.

Enrollment is about to close, so click here now to register for a special Alpha Stocks presentation this afternoon before it’s too late…

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
P.S. If you’re finally ready to see what you could be missing out on, click here to learn more about Alpha Stocks now!

Weekly Update: Filter Out the Noise… Focus on the Big Picture

Ross Givens on July 1, 2022

As I write this on Friday afternoon, the Nasdaq is down 5.6% for the week.

As expected, the recent short-term bounce was a great opportunity to take a few short trades from better entry points.

And if you took the short trade idea in ZIM Integrated Shipping Services Ltd. (ZIM) last week, you are sitting on a hefty profit.

The market failed to post a follow-through day or 90% up volume day last week – key signs I’m waiting for to signal the market may have found the bottom.

We are still seeing more stocks making new lows than new highs. And breakouts to the upside are still meeting selling and mostly reversing lower.

Roundtrip Market

As a trader, this can be extremely frustrating.

For example, here’s a trade we took in my Alpha Stocks service this week…

Chart

Description automatically generated — ***65-Minute Chart of ProPhase Labs, Inc. (PRPH) – Source: TradingView***

We bought ProPhase Labs, Inc. (PRPH) on the breakout at $11.97 per share. The next day, we were up over 17%.

As prudent traders, we took profits on part of the position at the top and raised our stop to breakeven.

That turned out to be the right move, as the stock reversed all the way back over the next two days.

We got out with a nice average gain, but unless you are using very wide stops (which I do not recommend) and taking on a lot of risk, this environment is making it very difficult to hold onto stocks for longer-term moves.

The Big Picture

So, let’s take a step back and look at the big picture…

I’ve found the easiest way to “remove the noise” is to look at a weekly chart rather than a daily or hourly chart.

Graphical user interface, chart, line chart, histogram

Description automatically generated — ***Weekly Chart of Invesco QQQ Trust (QQQ) – Source: TradingView***

The Nasdaq has been unable to get above its 50-day moving average for several months. Even the 200-day has rolled up and is now pointing down.

We have also seen several weeks of high-volume selling, which is a sign that institutions have been dumping stocks en masse.

Until that changes and we begin to see signs of meaningful buying, there is no reason to be aggressively buying or having much exposure.

My personal account has been primarily in cash since November.

I continue to make short-term trades and take small positions here and there, but I have not been more than 25% invested at any point this year.

This is how I have been able to keep drawdowns to a minimum.

Progressive Exposure

I don’t have a crystal ball. Like everyone else, I cannot predict bear markets.

But I do understand “progressive exposure.” It works like this…

Look at your last four to five trades. Did you make money?

If not, cut your trading size in half.

After the next five trades, look at your results. Did you make money?

If not, cut your trade size in half again. If you did, bump it up.

It’s not rocket science. But it’s a powerful technique for minimizing drawdowns and keeping your losses small.

When your trades are not working, you will be trading very small amounts of money and taking very small losses.

When trades are working, you will be trading very large size and therefore having big wins.

Join Me on Monday

If you got into trouble this year and suffered a big drawdown, don’t beat yourself up.

The best money managers in the world have lost billions this year. Tiger Global, one of the top hedge funds in the world, is down by half.

The important thing is to learn from your mistakes. Take the lesson and move on.

With that in mind, I hope you’ll join me on Monday afternoon at 3:00 p.m. ET for our live Stealth Trades session…

I’m going to be outlining our plan for dealing with a market environment like this.

We’ll talk about inflation and how it is impacting the markets we track, and we’ll take a look at our Watchlist stocks and other potential ideas in more detail.

So again, please join me right here Monday at 3:00 p.m. ET!

Now, we’re focused on making money in the second half of the year, so here are three trade ideas for this week’s Watchlist to kick off the new quarter and the second half of 2022…

Chinook Therapeutics, Inc. (Long Idea)

I added Chinook Therapeutics, Inc. (KDNY) to the Watchlist last week, and it did not rise enough to hit our buy trigger.

As I mentioned in the previous update, KDNY is a biotech stock coming out of a huge two-year base pattern.

Surge score: 97/100
% Above 52-wk low: 79%
Sales growth: +671%
Return on Equity: N/A
Triple momentum: yes

This week saw the stock pull back slightly to the 21-day moving average.

This is also a previous breakout level that could hold as support.

Traders could buy the stock here and use a 10% stop below the 50-day moving average.

The Howard Hughes Corporation (Short Idea)

The Howard Hughes Corporation (HHC) stock has been decimated over the last couple of months.

Shares of the real estate developer and manager fell from $105 to a low around $60 in just two months…

Surge score: 26/100
% Above 52-wk low: 105%
Sales growth: +N/A
Return on Equity: N2%
Triple momentum: yes (short)

Shares are seeing a short-term bounce to the 21-day line that should continue to act as resistance.

Consider selling HHC short here near the $70 mark.

Citigroup Inc. (Short Idea)

When looking for breakout stocks to buy, I want the best of the best… Stocks with big earnings growth, big sales growth, bullish forecasts and high relative strength.

Identifying names about to break out lower means we want the opposite… Declining sales and profits, poor relative strength and a clear downtrend on the chart.

Citigroup Inc. (C) checks every box…

Surge score: 35/100
% Above 52-wk low: 2%
Sales growth: -1%
Return on Equity: 11%
Triple momentum: no

This dumpster fire of a stock has been moving lower for a year now.

It is currently forming a shelf with support at $45.

If it breaks this level and makes a new low, consider going short with a stop at $49.20.

Finding Real Alpha

With the major indexes down double-digits and many of last year’s leading stocks down over 50%, consider checking out my Alpha Stocks trading service.

We recently recorded a 21.6% gain on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged…

As well as a gain of 21.3% in just 15 days in Permian Basin Royalty Trust (PBT) as that stock broke out of its range.

And this past Wednesday, we closed another winner in ProPhase Labs, Inc. (PRPH) for a two-day gain of 5.8%.

We also get together every Monday for an hour-long live session so that subscribers can ask questions and get guidance about our trades.

If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks 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
P.S. If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks now!

Weekly Update: Hot CPI Reading Sends Stocks South

Ross Givens on June 10, 2022

The market fell apart this week, with the Nasdaq 100 and S&P 500 each tumbling roughly 5%.

This was the worst week for stocks since January.

The catalyst? Inflation.

Consumer Price Index (CPI) numbers showed another record level for inflation on Friday.

The hope was that inflation had peaked and the May numbers would show signs of improvement. But the opposite happened…

The CPI rose 8.6% in May, which was a new 40-year high. Stocks responded in kind by selling off hard.

Engineering a Recession

Investors know the Fed has no choice but to aggressively raise rates and engineer a recession in order to fight this trend.

That could mean rate hikes of as much as 0.75% or 1% at the next meeting.

For me, that means it is highly likely the market will undercut the May 20 low and send the bear market on another leg down.

As we’ve discussed, the primary areas of strength in the market over the last six months have been energy, chemical and shipping stocks.

These sectors have made up the majority of our trade ideas and the biggest winners in my Alpha Stocks service.

But even these pockets of strength fell apart last week…

Eagle Bulk Shipping Inc. (EGLE) fell 15.7% on the week, while ZIM Integrated Shipping Services Ltd. (ZIM), another leader throughout the year, dropped 22.3%.

CF Industries Holdings, Inc. (CF), Genco Shipping & Trading Limited (GNK), Dow Inc. (DOW) and dozens of other top-performers all broke down below their pivot levels and undercut their 50-day moving averages.

For the time being, there seems to be nowhere to hide in this bloodbath.

Join Me on Monday

Bonds are down. Stocks are down. Digital currencies are down. Even gold, which typically rises during times of crisis, cannot seem to mount a rally.

I have been trading for over 15 years, and this is probably the most difficult environment I have ever seen.

Many traders I talk to are choosing to go to cash and sit out until things calm down.

But I am expecting lower prices and more downside in the markets.

With that in mind, I hope you’ll join me on Monday afternoon for our live Stealth Trades session at 3:00 p.m. ET…

I’m going to be outlining our plan for dealing with a market environment like this.

We’ll talk about inflation and how it is impacting the markets we track, and we’ll take a look at our Watchlist stocks and other potential ideas in more detail.

So again, please join me right here Monday at 3:00 p.m. ET!

Now, here are the three new short ideas I’m watching this week…

Grayscale Bitcoin Trust (Short Idea)

The Grayscale Bitcoin Trust (GBTC) is an exchange-traded fund that gives investors access to Bitcoin in the form of a security.

It trades like a stock and can be bought in any traditional brokerage account, so you don’t have to go through a digital currency exchange to trade it.

Here’s how the chart is setting up…

***Daily Chart of Grayscale Bitcoin Trust (GBTC) – Source: TradingView***

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

Surge score: 16/100
% Above 52-wk low: 9%
Sales growth: N/A
Return on Equity: N/A
Triple momentum: yes (short)

There was long-term support near the $24 area, which broke in early May.

Since breaching this level, GBTC cannot seem to rally and has formed a shelf over the last several weeks.

Traders may consider selling short here or once GBTC breaks below the $18.80 level. I would place a buy stop at $21.00 for protection.

Green Brick Partners, Inc. (Short Idea)

Green Brick Partners, Inc. (GRBK) is a residential homebuilder, and the stock looks ripe for another move lower.

Homebuilders saw huge profits in 2020 and 2021 thanks to a construction boom and rapidly rising home prices. But the party is coming to an end.

Interest rates have more than doubled over the last six months, and the country is on the verge of recession.

With rates expected to rise even further, it is hard to imagine this not ending in collapsing home prices and a serious slowdown in construction.

Here’s how the chart is setting up…

***Daily Chart of Green Brick Partners, Inc. (GRBK) – Source: TradingView***

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

Surge score: 75/100
% Above 52-wk low: 22%
Sales growth: +68%
Return on Equity: 25%
Triple momentum: no

GRBK has traded below its 200-day moving average (white line) since January.

Shares rallied back in the second quarter but are now failing and rolling over.

Traders could take a short position in the stock here with a buy stop above the swing high at $25.05 to risk 9% on the trade.

Skechers U.S.A., Inc. (Short Idea)

Since going public in 1999, Skechers U.S.A., Inc. (SKX) stock has regularly seen huge swings in both directions.

It mounts powerful rallies and suffers crippling falls. But if you can catch it at a turning point, the profits can be large.

Here’s how the chart is setting up…

***Daily Chart of Skechers U.S.A., Inc. (SKX) – Source: TradingView***

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

Surge score: 71/100
% Above 52-wk low: 17%
Sales growth: +27%
Return on Equity: 14%
Triple momentum: yes (short)

SKX has been trending lower for almost a year with a series of lower lows and lower highs.

The stock rallied 25% off the May lows right into the dotted downtrend line and its 200-day moving average.

This is a low-risk area to try a short trade. Traders can place a buy stop on the other side of the 200-day line at $43.00 for protection. The risk is just under 7%.

Finding Real Alpha

With the major indexes down double-digits and many of last year’s leading stocks down over 50%, consider checking out my Alpha Stocks trading service.

We just scored a serious gain in Permian Basin Royalty Trust (PBT) in a little over two weeks.

We also recently recorded a huge winning trade on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged last month…

Alpha Stocks also provides option alternatives if that’s more of your style.

And we get together every Monday for an hour-long live session so that subscribers can ask questions and get guidance about our trades.

If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks 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
P.S. If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks now!

Weekly Update: Back to Bullish This Week

Ross Givens on June 3, 2022

The lows that the S&P 500, Nasdaq 100 and Dow Jones all made on May 20 continue to hold.

Since then, we’ve seen a valid follow-through day on May 26 and strong action that week.

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

This week, the indexes were largely unchanged. As I’m writing this on Friday morning, the S&P and Nasdaq are flat to slightly lower for the week.

I’m happy to see recent gains are holding.

But for the coming week, I would like to see additional accumulation. In other words, I want to see stocks move up on increased volume.

Breakouts as a whole have been performing much better over the last couple of weeks.

We purchased Permian Basin Royalty Trust (PBT) in my Alpha Stocks research service on May 17, and shares soared 33% in just two weeks following a clear breakout.

Other names have also shown good progress.

So, unless the May 20 low is breached and the market begins another leg lower, I am now bullish on the market and looking for long trades.

Here are the three ideas I’m watching this week, all of which are setting up with clear horizontal breakout boundaries…

Howmet Aerospace Inc.

Howmet Aerospace Inc. (HWM) is a $15 billion specialty industrial company that engineers metal products for the aerospace and transportation industries across the globe.

The company is a major supplier for Boeing (BA).

Here’s how the chart is setting up…

***Daily Chart of Howmet Aerospace Inc. (HWM) – Source: TradingView***

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

Surge score: 91/100
% Above 52-wk low: 36%
Sales growth: +10%
Return on Equity: 9%
Triple momentum: yes

As you can see in the chart above, HWM is completing a large “cup with handle” pattern.

This is a 13-month base, so it could lead to a sustained move higher if shares can break out on good volume.

Relative strength (RS) has been climbing all year, and the RS line has made nine new highs since May.

I’m looking for a strong move through $37.50 to signal a buy. Consider working a stop beneath the 21-day moving average at $34.70.

Enact Holdings, Inc.

Enact Holdings, Inc. (ACT) is a $4 billion private mortgage insurance company and a recent initial public offering (IPO) that is consolidating nicely at its highs.

I like trading newer issues since the first breakout can lead to a strong move to the upside.

Here’s how the chart is setting up…

***Daily Chart of Enact Holdings, Inc. (ACT) – Source: TradingView***

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

Surge score: 94/100
% Above 52-wk low: 36%
Sales growth: -&%
Return on Equity: 14%
Triple momentum: yes

ACT is unique compared to most new issues in that it never undercut its initial price.

Most IPOs trade lower, sometimes significantly lower, after going public.

But ACT’s ability to hold up after its debut, especially in these market conditions, is a good sign of strength.

Consider buying ACT if it makes a new high. My buy trigger would be $24.90 with a stop at $22.85.

FLEX LNG Ltd.

FLEX LNG Ltd. (FLNG), with a market cap of $1.6 billion, builds and operates carrier vessels to transport liquefied natural gas.

The oil and gas sector continues to lead the market, so it is not surprising that FLNG keeps coming up on my strength scans.

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: 163%
Sales growth: -8%
Return on Equity: 19%
Triple momentum: yes

After a big run higher in March, shares have consolidated over the last eight weeks.

Thursday saw a big up day on three times average daily volume as FLNG broke through resistance.

Consider buying at current levels, and use a 10% stop loss.

Finding Real Alpha

With the major indexes down double-digits and many of last year’s leading stocks down over 50%, consider checking out my Alpha Stocks trading service.

As I mentioned above, we just scored a serious gain in Permian Basin Royalty Trust (PBT) in a little over two weeks.

We have plenty of long ideas for the right stocks, but we’re also not afraid to go short.

We also recently recorded a huge winning trade on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged last month…

We short stocks, but we also provide option alternatives if that’s more of your style.

And we get together every Monday for an hour-long live session so that subscribers can ask questions and get guidance about our trades.

If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks 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
P.S. If you’re ready to see what you could be missing out on, click here to learn more about Alpha Stocks now!

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

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Best wishes for your trading,

Ross Givens

Editor, Stealth Trades