Stocks Archives - Page 2 of 3 - Stealth Trades Premium Content

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: Ready to Sell the Snap-Back Rally

Ross Givens on May 20, 2022

Surprise, surprise… Another down week for stocks.

As I pointed out last week, the trend is unquestionably bearish.

The markets continue to see sellers in control with high volume on the downside.

As I write this update, the S&P 500 is trading within 2% of its 52-week low…

Not a good sign for bulls.

Retail Gets Rocked

Retail was hit hardest this week, which was certainly a contributing factor to the overall selloff.

Disappointing numbers from Walmart (WMT) and Target (TGT) triggered a selloff in consumer staple stocks, which is typically a sector that investors look to for safety.

In just three days, Target stock fell 30%, and Walmart was down almost 20%. Even Procter & Gamble (PG) was down double digits.

Higher prices at the grocery store are translating to lower sales and profits.

And what’s happening is that Wall Street is learning that the retail consumer, the biggest overall contributor to gross domestic product (GDP), is not as healthy as we thought.

Sell the Snap-Back

I remain bearish on the overall market and will again focus on short trades next week.

But it is important to remember that we could see a “snap-back rally” at any time.

If that happens, I will use it as a chance to sell the bounce and get short the worst-performing stocks as they approach their 50-day moving averages.

Historically, some of the biggest rallies occur during bear markets.

***Daily Chart of Nasdaq 100 Index — Source: TradingView***

Back in March, for example, the Nasdaq 100 jumped 17% in just two weeks.

But the selling soon resumed.

So, be cautious and don’t get sucked into buying until we have real confirmation that the bear has been killed.

I’ll let you know when the time comes. For now, here’s our latest list of short candidates…

SPX Corporation (Short Idea)

SPX Corporation (SPXC) is a $2.2 billion infrastructure equipment company for the heating and air industry.

Here’s how the chart is setting up…

TradingView Chart — ***Daily Chart of SPX Corporation (SPXC) — Source: TradingView***

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

Surge score: 38/100
% Above 52-wk low: 13%
Sales growth: +7%
Return on Equity: 12%
Triple momentum: yes (short)

SPXC has been falling all year. The stock has stair-stepped its way down in a series of lower lows and lower highs.

Resistance can be found at the red 50-day moving average where I have highlighted sell zones on the chart above.

Consider shorting SPXC here with a stop above the $50 level.

Alarm.com Holdings, Inc. (Short Idea)

Alarm.com Holdings, Inc. (ALRM) is a $3.1 billion technology company that makes smart devices and systems for residential and commercial properties.

Here’s how the chart is setting up…

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

Surge score: 38/100
% Above 52-wk low: 12%
Sales growth: +19%
Return on Equity: 19%
Triple momentum: yes (short)

You’ll notice the chart for ALRM looks almost identical to SPXC…

Both are following the same pattern of lower lows and lower highs and finding resistance at the 50-day.

I suggest using last week’s rally as an opportunity to sell ALRM short with a buy stop around the $65 mark.

If the trade works properly, the stock should make new lows in a week or two, which is where I would begin taking profits.

Advanced Micro Devices, Inc. (Short Idea)

Advanced Micro Devices, Inc. (AMD) is the $153 billion semiconductor company best known for its computing and graphics processors.

Here’s how the chart is setting up…

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

Surge score: 59/100
% Above 52-wk low: 16%
Sales growth: +71%
Return on Equity: 52%
Triple momentum: yes (short)

The fundamentals for AMD actually look good. But as always, the market knows best…

And the market has been selling AMD en masse for the last six months.

This week, the stock tested its 50-day moving average (red line) without success.

The stock appears to be rolling over, giving investors a low-risk opportunity to play the short side.

Consider selling AMD short here with a stop above this week’s high at $104.25.

Where’s the 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 have plenty of long ideas for the right stocks, but we’re also not afraid to go short. We short stocks and 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: Preparing to Short the Oversold Bounce

Ross Givens on May 13, 2022

Stocks saw more selling this week with each of the major indexes making new 52-week lows.

As I pointed out in last week’s update, this was largely expected.

Institutions were clearly reducing exposure, as evidenced by the increase in volume on the acceleration down.

***Nasdaq Composite Index — Source: MarketSmith, Inc.***

Given the violence of the recent selloff, I believe we are due for an oversold bounce.

In other words, stocks could make a short-term rally before continuing the move lower.

Just as stocks do not go straight up, they do not go straight down either.

They tend to stair-step their way lower with short, weak rallies in between periods of heavy selling.

I remain bearish on the market until we see meaningful signs of recovery.

At a minimum, this would mean waiting for a follow-through day and preferably several days of meaningful buying and new stocks setting up in breakout formations.

Finding good targets to sell short can be difficult when they are falling rapidly.

If you are a regular attendee of my weekly Stealth Trades or Alpha Stocks live weekly sessions, you know I prefer to sell short off a bounce and against some level of resistance.

We did so in Alpha Stocks two weeks ago and made over 600% buying put options on Pegasystems Inc. (PEGA) before the stock fell more than 40%.

My trade ideas this week will again focus on short opportunities.

Each of these names are in clear downtrends, and I will be pointing out low-risk areas where I would be interested in selling them short.

Evercore Inc. (Short Idea)

Evercore Inc. (EVR) was a market leader following the pandemic selloff of 2020. Shares climbed over 400% before peaking in October.

Since then, EVR has reversed course.

Here’s how the chart is setting up…

Daily Chart of Evercore Inc. (EVR) — Source: TradingView

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

Surge score: 37/100
% Above 52-wk low: 5%
Sales growth: +9%
Return on Equity: 66%
Triple momentum: yes (short)

EVR now trades below its 200-day moving average, trending lower and cannot rally above the 50-day moving average (red line).

It is now trading against its downtrend line and just below the 50-day.

I like this as a short trade with a buy stop at $117 for protection.

Central Garden & Pet Company (Short Idea)

Central Garden & Pet Company (CENTA) is a mid-cap consumer goods company selling pet food and garden supplies direct to consumer.

In the age of Amazon, this is a questionable business model at best. And based on the technicals, this stock could be on the verge of a major decline.

Here’s how the chart is setting up…

***Daily Chart of Central Garden & Pet Company (CENTA) — Source: TradingView***

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

Surge score: 67/100
% Above 52-wk low: 7%
Sales growth: +2%
Return on Equity: 14%
Triple momentum: yes (short)

Shares are forming a bearish “wedge” pattern with long-term support near the $40 mark.

But we don’t need to wait for it to break down before shorting the stock.

CENTA is trading right up against its downtrend line and just a dollar below the 200-day moving average. That’s a lot of resistance to push through.

I would consider selling this short in the $42-$43 range with a buy stop at $45.

This comes out to a risk of roughly 5% on a trade that could deliver a big win on the downside.

Adobe Inc. (Short Idea)

Adobe Inc. (ADBE) is one in a long list of past winners that has given back all of its post-pandemic gains.

The stock is down 43% since November and could fall further.

Here’s how the chart is setting up…

***Daily Chart of Adobe Inc. (ADBE) — Source: TradingView***

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

Surge score: 29/100
% Above 52-wk low: 9%
Sales growth: +9%
Return on Equity: 43%
Triple momentum: yes (short)

The trend is unquestionably bearish for ADBE stock, and shares have been unable to trade above their 50-day moving average for almost six months.

I would consider selling ADBE short in the $410-$425 area for a continuation move lower.

Work a stop at $442 for protection.

Where’s the 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 have plenty of long ideas for the right stocks, but we’re also not afraid to go short. We short stocks and 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: Shorting the Worst Market We’ve Seen In a Long Time

Ross Givens on May 6, 2022

The S&P 500, Nasdaq and Russell 2000 indexes all made new lows this week.

And Friday was the 22nd consecutive day with more new lows made on the Nasdaq Composite than new highs.

***Daily Chart of Nasdaq Composite Index with Net New Highs & Lows — Source: TradingView***

It is clear that sellers remain in control, and we may very well see stocks continue to sell off.

Many of the growth stocks that fueled the bull market over the last two years have given up all of their post-COVID gains.

PayPal (PYPL), Netflix (NFLX), Shopify (SHOP) and dozens of other household names are down more than 70% from last year’s highs.

This week, the Federal Reserve raised interest rates by 0.50%, which was the largest hike in 22 years.

The Fed is expected to continue raising rates throughout the year to fight inflation…

Yes, the same inflation it caused by printing trillions of dollars over the past few years.

Guilty Until Proven Innocent

To say that market conditions are poor is a gross understatement.

Billionaire trading legend Paul Tudor Jones told CNBC recently, “You can’t think of a worse macro environment than where we are right now for financial assets…”

He continued, saying, “If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies.”

And folks… The trend is unquestionably pointing down.

Therefore, I am only interested in short trades at this time.

I will need to see this market rally, put in a follow-through day, and then hold without further distribution before I start buying stocks again.

With all that said, here are the setups I am watching this week…

J.B. Hunt Transport Services, Inc. (Short Idea)

J.B. Hunt Transport Services, Inc. (JBHT) is a $18 billion logistics services company focused on trucks and transporting stuff via those trucks.

Here’s how the chart is setting up…

***Daily Chart of J.B. Hunt Transport Services, Inc. (JBHT) — Source: TradingView***

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

Surge score: 64/100
% Above 52-wk low: 11%
Sales growth: +33%
Return on Equity: 27%
Triple momentum: no

JBHT is a stock we played on the upside last summer.

But price broke down in a big way last month, falling from $220 to $170 on accelerating volume.

Shares have now put in a shelf around the $165 mark where buyers appear to be supporting the stock.

If it breaks that low, consider selling short with a stop at $179.

Norwegian Cruise Line Holdings Ltd. (Short Idea)

Norwegian Cruise Line Holdings Ltd. (NCLH) is an $8 billion cruise line company operating under several different brand names with approximately 28 ships.

Here’s how the chart is setting up…

***Daily Chart of Norwegian Cruise Line Holdings Ltd. (NCLH) — Source: TradingView***

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

Surge score: 31/100
% Above 52-wk low: 23%
Sales growth: +1,000%
Return on Equity: N/A
Triple momentum: yes

Norwegian Cruise Line has been trending lower since mid-2021.

After breaking below its 200-day moving average, the stock has been unable to rally above it.

When selling short, I prefer to do so against a resistance level like a major moving average when possible.

For NCLH, I am looking for a pop higher that we can sell into just beneath the 200-day (white line on the chart above).

The company is scheduled to report earnings on Tuesday. If the numbers are good, it might propel NCLH near the $21 level, which is where I would like to sell.

The buy stop would be on the other side of the 200-day moving average.

Summit Materials, Inc. (Short Idea)

Summit Materials, Inc. (SUM) is a $3 billion provider of construction and building materials for both residential and non-residential customers.

Here’s how the chart is setting up…

***Daily Chart of Summit Materials, Inc. (SUM) — Source: TradingView***

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

Surge score: 40/100
% Above 52-wk low: 1%
Sales growth: -2%
Return on Equity: 8%
Triple momentum: yes (short)

Summit is a classic “broken leader” that could easily get cut in half over the next few months.

The stock advanced more than five-fold from the 2020 lows to late 2021 but has now turned south.

The 200-day line has been broken, and last month’s rally attempt failed and has now returned the stock to its lows.

The company announced larger losses than expected in its quarterly earnings report this week, which is only adding fuel to the bearish fire.

Consider selling SUM short on a move below $26.40.

Join the Insiders

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

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

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

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

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

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

Live Coaching Session

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

Weekly Update: Revising the Meaning of “Don’t Fight the Fed”

Ross Givens on April 29, 2022

Many of you have likely heard the old Wall Street adage, “Don’t fight the Fed.”

Usually, this phrase is uttered by bullish investors warning their bearish counterparts not to short a rising market being fueled by easy monetary policy.

But at this point, with the Federal Reserve seemingly set to defeat rising inflation by any means necessary, it’s taking on a different meaning.

New Meaning

For me, fighting the Fed right now would mean trying to buy stocks in the face of tightening monetary policy.

Instead of taking on that risk, I am starting to look for more ways to go with the market flow.

After all, the Nasdaq made a new year-to-date low this week, indicating that this bear market is not over yet.

Therefore, on today’s Watchlist, I’m including just one bullish idea and two bearish ideas.

Both technically and from a fundamental perspective, I think we’ll have more success trading with the Fed rather than against it.

With that in mind, let’s get right to our newest ideas…

Jackson Financial Inc.

Jackson Financial Inc. (JXN) is a $3.7 billion financial planning firm showing huge growth in both sales and earnings.

Here’s how the chart is setting up…

***Daily Chart of Jackson Financial Inc. (JXN) — Source: TradingView***

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

Surge score: 97/100
% Above 52-wk low: 98%
Sales growth: +170%
Return on Equity: 32%
Triple momentum: yes

Growth stocks have been hammered over the last six months, but JXN has held up better than most.

It is also a recent initial public offering (IPO), so this would be the first base breakout for the stock.

The stock has compressed nicely with pullbacks shallowing from 25% to just 8%.

I am looking to buy the stock on a break above $44.10 with a stop beneath the swing low at $42.05.

MaxLinear, Inc. (Short Idea)

MaxLinear, Inc. (MXL) is a $3.9 billion semiconductor company focused on communications chips.

Here’s how the chart is setting up…

***Daily Chart of MaxLinear, Inc. (MXL) — Source: TradingView***

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

Surge score: 77/100
% Above 52-wk low: 59%
Sales growth: +26%
Return on Equity: 49%
Triple momentum: yes (short)

This stock was a big winner in 2020 and 2021, climbing over 800% in less than two years.

But the bullish run appears to be over.

Shares have rolled over hard, making a decisive break of the 200-day moving average and plummeting to new lows.

The stock popped up on earnings last week, but I would use this as an opportunity to sell the stock short.

Try to sell near the $50 level and use the 200-day moving average as your stop loss.

RH (Short Idea)

RH (RH), also known as Restoration Hardware, is an $8.5 billion luxury home furnishings retailer.

Here’s how the chart is setting up…

***Daily Chart of RH (RH) — Source: TradingView***

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

Surge score: 18/100
% Above 52-wk low: 8%
Sales growth: +11%
Return on Equity: 95%
Triple momentum: yes (short)

Restoration Hardware is getting destroyed.

It’s down more than 50% over the last six months, with no sign of coming back to life.

So far, RH has found support at the $320 level.

But it has been tested four times so far, and I don’t expect it to survive a fifth test.

If the stock makes new lows, this would be a good short opportunity.

I would use the 50-day moving average as my initial stop and then bring it down as the trade moves lower.

Join the Insiders

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

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

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

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

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

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

Live Coaching Session

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

Weekly Update: Take the Gain in Alpha Metallurgical Resources & Next Week’s Watchlist

Ross Givens on April 22, 2022

The major indexes came under further pressure this week.

While Tuesday brought a nice rally for stocks, Thursday and Friday’s sessions were downright ugly.

The S&P 500 fell 1.5% and 1.7% those days, while the Nasdaq 100 dropped 2% and 1.5%, respectively.

The Russell 2000 was hit even worse, with declines of 2.3% and 1.8%.

All three indexes are below their major moving averages, which is not a good sign.

Furthermore, the S&P 500 Volatility Index (VIX), commonly known as the market’s “fear gauge,” has jumped sharply to the 25 level.

That’s the highest level since mid-March, which shows that traders are becoming more fearful of tighter monetary policy and higher interest rates.

However, there are still stocks out there that are bucking the bearish trend.

And there are other segments of the market, such as real estate investment trusts (REITs), that could thrive in a higher interest rate environment.

These are the types of stocks I’m bringing you in this week’s Watchlist.

The Latest Stealth Winner

Before we get to this week’s Watchlist stocks, I want to call out a recent winning trade in Alpha Metallurgical Resources (AMR).

I first told you about this idea on April 1, and we entered the position at $140 on April 12 per the Trade Tracker.

After a nice, quick move to the upside, we sold half at $163.50 for a 16.80% gain in just a few days.

We then raised the stop to breakeven on the rest, which got hit yesterday for no loss on the second half.

The average exit was $151.75, which equates to a solid gain of 8.39% on the full trade.

Congratulations on a great win!

Now, on to our newest Watchlist ideas…

ePlus inc.

ePlus inc. (PLUS) is a $1.6 billion information technology (IT) company focused on optimizing IT and supply chain processes for a variety of industries.

Here’s how the chart is setting up…

***Daily Chart of ePlus inc. (PLUS) — Source: TradingView***

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

Surge score: 92/100
% Above 52-wk low: 38%
Sales growth: +16%
Return on Equity: 16%
Triple momentum: yes

PLUS is a growth stock. As such, it made a good-sized correction at the beginning of this year.

But it is now coming out of a “cup with handle” pattern on good volume.

Moreover, the stock not only held up during the Thursday selloff but actually advanced.

Any stock that can break out and hold under that much selling pressure could see a substantial move higher under better conditions.

I like PLUS near the $58 pivot level with a sell stop at $53.65.

Xenon Pharmaceuticals Inc.

Xenon Pharmaceuticals Inc. (XENE) is a $1.7 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: 96/100
% Above 52-wk low: 129%
Sales growth: -27%
Return on Equity: N/A
Triple momentum: yes

XENE has been on the Watchlist for two weeks now but has yet to break out.

I’m staying patient with this one since larger base patterns like this often lead to the largest breakout moves.

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

But the technicals still look 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.

Consider buying if the stock breaks above $35.70 on good volume.

AvalonBay Communities, Inc.

AvalonBay Communities, Inc. (AVB) is a $35.4 billion real estate investment trust (REIT) operating 278 apartment communities consisting of 81,803 total units.

Here’s how the chart is setting up…

***Daily Chart of AvalonBay Communities, Inc. (AVB) — Source: TradingView***

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

Surge score: 88/100
% Above 52-wk low: 35%
Sales growth: +8%
Return on Equity: 9%
Triple momentum: yes

REITs like AvalonBay are attractive investments here since interest rates and inflation are on the rise.

Landlords across the country are raising rents due to rising prices.

With loans already in place at lower fixed interest rates, expenses should remain the same while revenues increase.

This will also create an additional barrier to entry since new landlords would have to finance their purchases at much higher rates.

Consider buying AVB on a move to new highs with a stop at $242.00 for a 6% risk on the trade.

Join the Insiders

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

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

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

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

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

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

Live Coaching Session

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. On Tuesday, April 26 at 1 P.M. ET, we’re unveiling a new futures trading system…

Click here, to sign up for the upcoming event: Futures Trading Summit.

Weekly Update: Where the Rubber Meets the Road

Ross Givens on April 15, 2022

The major indexes remain under pressure.

While last week I told you that there was some improvement in the technical picture, with the S&P 500 above its 50- and 200-day moving averages, it is now back below them again.

The Nasdaq 100 and Russell 2000 are below their respective moving averages as well.

We are now at the point where the rubber meets the road.

Either the heavy buying we saw off of the recent lows will return, confirming stocks are back in a bull market…

Or this was simply a prolonged bear market bounce and the markets revisit those lows, which is very possible.

What’s Working

Several of our Stealth Trades positions are working well.

This includes the most recent official alert for Alpha Metallurgical Resources, Inc. (AMR) that went up 7% the first day and is now higher by nearly 12% since the breakout.

Five of our six open Alpha Stocks trades are also showing profits.

Still, inflation continues to reveal itself as worse than expected, which is worrisome since it increases the likelihood that the Federal Reserve will raise rates more aggressively.

As regular readers know, higher interest rates are bad for stocks and vice versa.

The second half of April will tell us if the market has already priced in the inflation and rate-hike issue or if things are going to get worse for stocks before they get better.

In the meantime, we’re sticking with our usual strategy of finding fundamentally strong stocks pushing up against clearly defined pivot levels…

First Majestic Silver Corp.

First Majestic Silver Corp. (AG) is a $3.7 billion Canadian mining company primarily focused on silver and gold production.

Here’s how the chart is setting up…

***Daily Chart of First Majestic Silver Corp. (AG) — Source: TradingView***

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

Surge score: 88/100
% Above 52-wk low: 52%
Sales growth: -27%
Return on Equity: N/A
Triple momentum: yes

From a fundamental perspective, analysts are forecasting record earnings for First Majestic in 2022 and another 97% increase in 2023.

Technically speaking, AG stock has basically gone nowhere for the last two years.

However, it is now setting up in a classic “cup with handle” pattern.

Price action has tightened nicely and formed a pivot area at $14.50.

Consider buying if that price is hit and use $13.40 as a stop.

Xenon Pharmaceuticals Inc.

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

I added this stock to the Watchlist last week. It has not yet triggered, but the setup still looks good.

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: 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 still 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.

Consider buying if the stock can make new highs on good volume.

Fluor Corporation

Fluor Corporation (FLR) is a $4.2 billion construction and maintenance services company focused on the oil and gas, chemical and mining industries.

And all of these industries are booming right now.

Here’s how the chart is setting up…

***Daily Chart of Fluor Corporation (FLR) — Source: TradingView***

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

Surge score: 97/100
% Above 52-wk low: 109%
Sales growth: -3%
Return on Equity: 12%
Triple momentum: yes

High oil prices generally lead to increased drilling, and Flour stands to benefit from that.

Analysts appear to agree with consensus estimates calling for 35% earnings growth in each of the next two years.

From a technical perspective, the volume footprint shows signs of institutional accumulation.

Heavy buying for a week straight in early March propelled the stock higher, and it has now consolidated with minimal pullbacks.

I think you can buy FLR here at $30.00 and work a stop at $28.00 for protection.

Join the Insiders

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

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

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

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

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

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

Live Coaching Session

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: 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…

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