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

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

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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. 

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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.

TradingView Chart
Daily Chart of Chinook Therapeutics, Inc. (KDNY) – Source: TradingView
  • 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…

TradingView Chart
Daily Chart of The Howard Hughes Corporation (HHC) – Source: TradingView
  • 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…

TradingView Chart
Daily Chart of Citigroup Inc. (C) – Source: TradingView
  • 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: The Next Leaders Emerge from the Market Rubble

In our live Alpha Stocks session this past Monday, I pointed out that stocks were severely oversold and I was looking for a short-term bounce. 

Stocks rose as expected during the following week, but as I write this on Friday morning, the rally seems fairly unimpressive.

The S&P 500 is up roughly 4% from last week’s close, but we have not seen aggressive buying volume.

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Daily Chart of S&P 500 Index with Volume Indicators – Source: TradingView

We managed to avoid any new 90% down volume days, but we did not see a 90% up volume day either…

That’s a sign I am waiting for to signal that buyers might be returning.

The number of stocks making new lows continues to outpace the ones making new highs as well.

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Daily Chart of Nasdaq Composite with Market Breadth Indicator – Source: TradingView

While it was good to see the ratio shrinking last week, a healthy market will have stocks breaking out to new highs and fewer names undercutting prior lows.

Unfortunately for the bulls, it has been over two weeks since we have seen a day with net new highs.

Showing Promise

That being said, a few groups of stocks are starting to show promise. 

It is vitally important to watch which stocks are making highs when the market is making lows. 

This is usually the next group of market leaders that can advance several hundred percent once the next bull market begins.

Chemical, shipping and energy stocks were the clear leaders in 2022. But their reign quickly came to an end.

Over the last two weeks, the Energy Select Sector SPDR Fund (XLE) is down 23%. 

Shipping stocks like ZIM Integrated Shipping Services Ltd. (ZIM), Star Bulk Carriers Corp. (SBLK), Genco Shipping & Trading Limited (GNK) and Grindrod Shipping Holdings Ltd. (GRIN) have fallen 25%-30% each. 

And Dow Inc. (DOW) has wiped out all of its 2022 gains in just three weeks.

So… who are the new leaders?

Bullish Biotechs

So far, the new leaders all seem to be biotechnology companies. The SPDR S&P Biotech ETF (XBI) rose over 12% last week. 

And stocks like Meridian Bioscience, Inc. (VIVO), Chinook Therapeutics, Inc. (KDNY), Immunocore Holdings plc (IMCR), Allogene Therapeutics, Inc. (ALLO) and Vertex Pharmaceuticals Incorporated (VRTX) are all showing a lot of strength on increasing volume.

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Meridian Bioscience, Inc. (VIVO) with Volume Indicator – Source: TradingView

The increase in volume is a crucial distinction that is often overlooked by amateur traders. 

We want to see heavy buying from large institutions as they are building up positions. And volume is the secret footprint that reveals this activity.

I am also seeing strength in several solar energy stocks. Daqo New Energy Corp. (DQ), Enphase Energy, Inc. (ENPH), SolarEdge Technologies, Inc. (SEDG), JinkoSolar Holding Co., Ltd. (JKS) and a few others are beginning to set up as potential buys.  

The general market, however, is still in no-man’s land. It has not yet shown enough strength to start heavily buying. 

The indexes are also too far extended to safely enter a good short position.

Therefore, risk-averse traders might consider sitting out for the week until the market shows where it wants to go.

The Nasdaq index, represented below by the Invesco QQQ Trust (QQQ), is beginning to tighten up and coil before making its next move.

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Daily Chart of Invesco QQQ Trust (QQQ) – Source: TradingView

Which direction the market moves next remains to be seen, but I have enough confidence in this week’s Watchlist ideas to bring them to you today.

You’ll find two new long ideas and one new short idea added to the Watchlist below…

Chinook Therapeutics, Inc. (Long Idea)

Chinook Therapeutics, Inc. (KDNY) is a biotech stock coming out of a two-year base pattern.

Here’s how the chart is setting up…

TradingView Chart
Weekly Chart of Chinook Therapeutics, Inc. (KDNY) – Source: TradingView

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

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

The company has three drugs in its development pipeline, one of which is in Stage 3 clinical trials. 

Good news from that trial could deliver a big surge in the share price.

KDNY has seen several weeks of big volume on its move to the highs. Consider buying the breakout with an 8% stop.

Immunocore Holdings plc (Long Idea)

Immunocore Holdings plc (IMCR) is another biotechnology stock showing a lot of strength.

Here’s how the chart is setting up…

TradingView Chart
Daily Chart of Immunocore Holdings plc (IMCR) – Source: TradingView

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

  • Surge score: 96/100
  • % Above 52-wk low: 102%
  • Sales growth: +159%
  • Return on Equity: N/A
  • Triple momentum: yes

IMCR just completed a beautiful base pattern with volatility compressing as pullbacks shallowed from left to right – exactly the kind of price action we like to see.

Consider buying this stock here around the $37 mark with an 8% stop loss.

ZIM Integrated Shipping Services Ltd. (Short Idea)

I added ZIM Integrated Shipping Services Ltd. (ZIM) to the Watchlist as a short last week, and it is finally hitting the entry trigger.

Here’s how the chart is setting up…

TradingView Chart
Daily Chart of ZIM Integrated Shipping Services Ltd. (ZIM) – Source: TradingView

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

  • Surge score: 90/100
  • % Above 52-wk low: 96%
  • Sales growth: +113%
  • Return on Equity: 191%
  • Triple momentum: no

The stock was a market leader in 2022 as marine shipping companies have been able to charge insane rates due to slowdowns in the supply chain. 

Earnings surged roughly 10-fold after the pandemic and the stock has done the same.

But President Biden basically declared war on ZIM and the other handful of companies that control the bulk of cargo shipments from overseas thanks to what the White House believes is “price gouging.”

After an 803% move higher in 2021 and early 2022, ZIM has finally started rolling over. 

Shares have seen heavy selling volume over the last few weeks, and the stock is now resting on its 200-day moving average for the first time ever.

I would consider selling ZIM short with a buy stop at $52 for protection. 

Did You Miss the Big Reveal?

Were you able to join my colleague and expert trader Anthony Speciale for the unveiling of Project 6×6 and his brand-new trading service, Part Time Profits?

If not, you need to check the encore presentation right here!

Anthony revealed the exact “1% trading blueprint” he used to go from working day and night as an auto mechanic…

To banking $100,000+ in real trading profits six straight years in a row.

All by only logging on to his computer from the comfort of his home for 1-2 hours every week…

Click here to watch the full replay 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. Were you able to join my colleague and expert trader Anthony Speciale for the unveiling of Project 6×6 and his brand-new trading service, Part Time Profits?

If not, you need to check the encore presentation right here!

Weekly Update: Don’t Attempt to Catch This Falling Knife

The selling continues…

Last week, I shared why I was bearish on the market and expected stocks to continue lower. 

Unsurprisingly, that is exactly what happened.

The Nasdaq and S&P 500 each fell roughly 6%. And BTC dropped another 22% this week!

If you’re new to trading and haven’t experienced one yet, this is what happens in a bear market. It can get ugly in a hurry.

That’s why I’ve been pounding the table since last year telling folks not to get aggressive and remain mostly in cash.

I held a webinar on Tuesday where I talked about a few under-the-surface breadth indicators I am watching to signal when the market has bottomed.

Here is a quick update on the technical picture…

Digging In

The Nasdaq is currently giving oversold readings, which under normal circumstances can lead to a short-term bounce.

But in severe bear markets like this one, stocks will often remain oversold for longer than usual.

Daily Chart of Nasdaq Composite with Breadth Indicators – Source: TradingView

Less than 15% of stocks are above their 200-day moving average, and even the strongest groups like chemicals, shipping and energy have broken down and sold off.

The only surprising thing to me is the put/call ratio. Markets tend to bottom at the point of maximum pain.

When the last bull finally capitulates and sells… When the diamond-handed, “hold on for dear life” boys finally throw in the towel… And the financial news is screaming recession, that is usually the bottom.

Traditionally, we see the put/call ratio spike to 1.40 or higher as investors pile into call options to protect what they have left or bet on lower prices.

But this week, it pulled back below 1.00. That’s a signal that investors may not yet have hit their “cry uncle” point.

We also saw another 90% down-volume day on Thursday, making this the seventh one since April.

Daily Chart of S&P 500 with Volume Indicators – Source: TradingView

To put that in perspective, there were only six during the 2020 pandemic selloff.

No Crystal Ball

I don’t pretend to know how low the market will go or where the bottom will be.

In fact, you should be skeptical of anyone who claims they do.

All we can do is listen to the market and trade with the prevailing trend.

One day that trend will be up. But right now, it is unquestionably down.

And for those of you tempted to buy here because stocks look “cheap,” remember that they can always get cheaper.

Selloffs and meltdowns don’t happen from the top. They come at the end of a steady decline.

Want proof? Here’s a comparison of the S&P 500 in 2008 versus today…

Daily S&P 500 Comparison Chart 2008 vs. 2022 – Source: TradingView

I’m not saying this is what will happen… But you can see how the decline accelerated into the later stages of the 2008 bear market.

Okay… If I haven’t bored you yet, here is my Watchlist for this week. It shouldn’t be surprising that they are all short trades…

The Boeing Company (Short Idea)

The Boeing Company (BA) has been trending lower since last March – 10 months before the bear market even started.

Here’s how the chart is setting up…

Daily Chart of The Boeing Company (BA) – Source: TradingView

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

  • Surge score: 24/100
  • % Above 52-wk low: 18%
  • Sales growth: -8%
  • Return on Equity: N/A
  • Triple momentum: yes (short)

Sales are declining, and the company is losing money hand-over-fist. Institutions have also been exiting the stock for the last four quarters.

If you’ve attended the last few live Monday sessions, you know I prefer to short weak stocks when they bounce up into resistance – preferably a downtrend line or major moving average.

BA is roughly 7% below its 50-day moving average, which will likely serve as resistance for the stock.

Traders may consider selling BA short in the $135-$145 range using a 10% stop for protection.

By the way, do be sure to check in to the live session on Monday right here…

We’re going to have plenty to talk about next week!

JD.com, Inc. (Short Idea)

JD.com, Inc. (JD) is a Chinese retailer offering a wide variety of products via their website and mobile app.

Basically, it is China’s version of Amazon… only not nearly as good.

Here’s how the chart is setting up…

Daily Chart of JD.com, Inc. (JD) – Source: TradingView

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

  • Surge score: 70/100
  • % Above 52-wk low: 58%
  • Sales growth: +22%
  • Return on Equity: 9%
  • Triple momentum: no

I’ll admit to being a bit biased on this one because I strongly dislike Chinese stocks.

I have seen too many rug-pulls, ghost companies and too much outright fraud from Chinese companies to have any real faith in their stocks that trade on our exchanges…

Not to mention the government’s history of nationalizing private industries and just generally hating US investors.

That being said, the stock is a textbook short setup…

After a severe decline, JD bounced into its 200-day moving average, which will likely act as resistance.

Consider selling JD short here with a buy stop near $69.

ZIM Integrated Shipping Services Ltd. (Short Idea)

ZIM Integrated Shipping Services Ltd. (ZIM) is a stronger stock than I typically look to short, but I believe this is the beginning of the end for ZIM.

Here’s how the chart is setting up…

Daily Chart of ZIM Integrated Shipping Services Ltd. (ZIM) – Source: TradingView

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

  • Surge score: 93/100
  • % Above 52-wk low: 106%
  • Sales growth: +113%
  • Return on Equity: 191%
  • Triple momentum: no

The stock has been a market leader in 2022 as marine shipping companies have been able to charge insane rates due to slowdowns in the supply chain.

Earnings surged roughly 10-fold after the pandemic, and the stock has done the same.

But President Biden basically declared war on ZIM and the other handful of companies that control the bulk of cargo shipments from overseas thanks to what the White House believes is “price gouging.”

After an 803% move higher in 2021 and early 2022, ZIM has finally started rolling over.

Shares have seen heavy selling volume over the last few weeks, and the stock is now resting on its 200-day moving average for the first time ever.

If ZIM breaks below $47, I would consider selling it short with a buy stop at $52. 

Our Latest Project

My colleague and expert oil trader Anthony Speciale is preparing to unveil his latest project…

He’s been able to make over $100,000 in trading profits for six straight years in a row without using any indicators.

That’s why we highly recommend you click right here to register your email address for the groundbreaking reveal of Project 6×6…

It’s going live on June 21 at 1 p.m. EST. You don’t want to miss this!

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. Don’t miss the groundbreaking reveal of Project 6×6… Click right here to register your email address and stay in the know.

Weekly Update: Hot CPI Reading Sends Stocks South

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!