Weekly Update: Bull Market Remains in Full Force

Good evening, and welcome to this week’s edition of Stealth Trades!

The bull market we’ve been seeing remains in full force.

The S&P 500 index is up 8.9% for the year and roughly 20% off the lows made in October.

While this has been a great run to start the year, don’t expect stocks to go straight up.

Things are a bit extended at the moment, and I expect to see a slight pullback in the next 1-2 weeks to digest this move.

If there are stocks you are itching to buy, be patient and wait for a good entry.

Foot Locker, for example, which I suggested buying in the January 20 weekly update email, is up 26% in the last two weeks.

It is extended well beyond its moving averages, making this a poor place to buy now.

Instead, I would be taking partial profits on the trade and waiting to add back on a pullback to the 10 or 21-day moving averages.

CPS, which I recommended in last week’s update, also ran 25% higher.

CPS was triggered by a chart setup I call the “MVP Pattern.”

I held a special webinar on Tuesday to explain it in detail. Hopefully you were able to attend.

Based on a widely studied chart pattern that was ranked #1 in both performance and success rate, we have made improvements to the entry and exit techniques to make it even better.

In the live presentation, I revealed our findings and how we are using it to buy fast-moving stocks in 2023.

If you missed it, I encourage you to watch the replay here.

To demonstrate the power of this lucrative pattern, I wanted to share a few of the MVP setups I am watching right now.

Full disclosure, I plan to buy each of these in my own account if and when they hit the buy triggers below.

DermTech (DMTK)

DMTK stock surged over 300% in just 28 days in phase 1 of this MVP pattern.

It is finally taking a rest to digest the huge surge of buying. This has formed phase 2 of the pattern.

My entry trigger will be a break of the white downtrend line on the chart. A move above this resistance level will likely lead to a rapid move higher.

AppHarvest (APPH)

AppHarvest is a fascinating company. It is a pioneer in the field of “vertical farming” – the use of large indoor farms where plants are stacked vertically several stories high.

This allows for an immense reduction in the water needed to grow crops as well as a better utilization of space since, instead of growing one row of crops across a piece of land, they can grow 20+ rows in these large multi-story grow houses.

So I like the story here. But more important than that is the price action.

Shares are up big in 2023 – roughly 349% as of today.

It is forming a brief consolidation zone here at the 200-day moving average and holding up well. If the stock can get above $2.65, I expect to see another leg higher.

Disclosure: I own shares of APPH.

Aurinia Pharmaceuticals (AUPH)

AUPH is a biotech stock making a powerful move higher.

After more than doubling in just two weeks, shares have consolidated in the $8-$9 range.

It has also held and respected its 10-day moving average beautifully.

A push above 9.50 to new highs could be the start of another dramatic rise for AUPH stock.

Best wishes for your trading,

Ross Givens

Editor, Stealth Trades

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