Weekly Update: Looking for the Leaders of the Next Bull Market
Stocks continued to rally this week, with the S&P 500 reaching its 50-day moving average.
The market, as tracked by the SPDR S&P 500 ETF Trust (SPY), is now up roughly 10% from the lows.
Bear market rallies are not uncommon, and it is important to maintain a big-picture outlook.
The S&P 500 is still down 20% from its 2021 highs, and the Nasdaq 100 is off more than 30%.
Tech Trounced
Technology stocks have been hit harder than other areas of the market this year, and many of the biggest names made new lows this week.
Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) all fell on poor earnings results. The chart below shows the performance of those stocks for the week…
Not everything is down, however…
In fact, the indexes managed to shake off these results and hold their ground to close the week.
This is a good sign for stocks. The market’s ability to rally while the previous market leaders fall tells me we are likely near the bottom of this bear market.
We are also making money from our official Stealth Trades…
Portfolio Review
McKesson Corporation (MCK), which we recommended as a buy in July, is again making new highs.
We also made a quick profit shorting California Water Service Group (CWT) stock two weeks ago.
See the details in our Trader Tracker right here.
Remember that the leaders of one bull market will not lead the next…
That means Meta, Alphabet and Amazon will not be the big winners of the new bull market.
It’ll be smaller companies, many of which you have never heard of, that deliver the biggest gains in the coming years.
That’s why it is important to focus on strength and pay attention to the stocks making new highs when the market is just coming off its lows.
Stealth Trades Watchlist
Click here to view this week’s full Watchlist!
But remember that not all of the stocks on our Watchlist are actionable…
When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!
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 covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.
Live Coaching Session
I hope you’ll join me on Monday, Oct. 31, for our next live Stealth Trades session at 3:00 p.m. ET…
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.