Weekly Update: The Market Won’t Make It Easy

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

The market just won’t make it easy, will it?

After an upside reversal in the Nasdaq last week and good follow through on Friday, stocks pulled back to again.

The culprit? Wall Street enemy #1 – Federal Reserve Chairman Jerome Powell.

The same moronic bag of dog excrement who printed $8 trillion after COVID and caused the inflation problem has been raising interest rates faster than ever before in history to fix his mistake.

And this week, he opened his big dumb mouth in front of Congress saying interest rates are “likely to be higher” than previously anticipated.

Never before has one man pumped and dumped the entire stock market with such reckless abandon and an absolute neglect for how it impacts people’s lives.

While I am definitely bearish about Powell’s intelligence, I remain bullish on the market. The Fed wants to keep raising rates because economic data is still strong. And the idea of shorting stocks because the economy is too good just doesn’t make a lot of sense.

Don’t get me wrong – we still want to be cautious here. But a lot of stocks are still advancing nicely.

I want to use this week’s pullback as a chance to buy some of the best performers. I am focusing on names with good charts AND big sales and earnings growth. In a rocky market I want the best of the best.

Here are a few on my radar:

Manitowoc Company (MTW)

Manitowoc Company (MTW) is a machinery manufacturer producing cranes and related lifting equipment for the chemical, energy and construction sectors.

Business is booming, and earnings were up 67% and 185% in each of the last two quarters.

The powerful uptrend is undeniable on the chart. MTW has also seen big and consistent volume flowing into the stock, especially in the last couple weeks.

The recent pullback is an opportunity to buy this stock under its 10-day moving average. I don’t expect to see MTW trade below $17 per share.

Perion Network (PERI)

Perion Network (PERI) is an Israeli-based digital advertising firm post tremendous numbers.

Sales are growing at >30% per quarter and earnings growth is even higher.

I included this stock in last week’s watchlist as well. As expected, PERI broke out and ran 8% in the first three days.

But that move came to a halt Thursday when the market fell apart, giving traders a second chance to buy this one at the breakout point.

I would work a stop at 32.45 to risk just 5% on the trade.

Tecnoglass (TGLS)

TGLS is on a tear. The stock more than doubled over the last four months.

Last week, the company shattered earnings expectations and ripped high once again. It reported earnings growth of 118% and a 60% jump in sales.

The quarter before was equally impressive.

This is a market-leading stock. And Friday’s 6% dip to the 10-day moving average is an attractive place to buy some shares.

I would love to build a position in the $36-$40 range and ride the earnings momentum back into new highs.

Best wishes for your trading,

Ross Givens

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