Weekly Update: These Are The Stocks To Focus On
Good evening, and welcome to this week’s edition of Stealth Trades!
The stock market is within 2% of making new all-time highs.
Pessimistic naysayers and the doom and gloom crowd have missed a historically strong rally over the last nine weeks.
We however, spotted the tell-tale signs that the low was in and have been aggressively long since early April. Alpha Stocks members are up 150% on OKLO, 148% on QUBT, 37% on HUT and have another 92% in open gains on a handful of other names – all since mid-April.
But this is just the beginning…
If history is any indication, we should see another 6-18 months of strong bull market.
I talk about this often, but it bears repeating – it is crucial to identify market leadership early. Every bull market is driven by an overarching theme. A few sectors will outperform the rest, and the biggest gains will come from stocks in that group.
The last few years were driven by AI. Stocks like Nvidia (NVDA), Super Micro Computer (SMCI) and Applovin (APP) soared more than 1,000% each. AI was the theme, and stocks in the semiconductor and software sectors were the biggest winners.
Today – just two months into a new bull market – we are seeing a few clear themes play out. Nuclear is the clear leader, but gold/metals, crypto, quantum computing, and AI are also showing big strength.
The image above is our Industry Strength indicator. It ranks the top-performing sectors over the last 1, 2, 3 and 6-month periods. I color-coded the groups showing up consistently.
Nuclear is obvious – #1 on every time frame. Institutional dollars are flooding this sector as the White House begins an aggressive nuclear agenda. OKLO, SMR, NNE and a few others have surged.
I bought NNE last week and recommended members to the same in last week’s email update. If you took my advice, you are already up 15-20%.
Crypto is also very strong. And not just cryptocurrencies themselves, but also stocks that benefit from a strong crypto market like RobinHood (HOOD) and MARA Holdings (MARA).
The mining and metals group appears on every list. Gold has been strong for a year and a half and looks like it is getting ready for another surge higher (see chart below).
The quantum computing sector has delivered huge gains for stocks like QUBT, QBTS and RGTI. They have calmed down over the last few weeks, but I expect to see more upside here.
And, of course, we are still seeing AI dominance (represented by the semiconductor and software sectors).
eSports is another area showing strength, but this is a relatively small group of stock. And the bulk of the outperformance is due to one stock – Roblox (RBLX).
I’m sure I sound like a broken record, but focusing on the leading groups early in a bull market is the single best way to achieve big performance.
Make a watchlist of the top 3-5 names in each of the top sectors and keep a laser focus on those names. Watch for breakout patterns, flags, and pullbacks to support. Then, when your buy point is hit, trade with conviction.
Conditions will not always be this good. When they are, you owe it to yourself to take advantage. My account is up 19% in the first three weeks of June.
My goal is to double it by the end of the year.
Join me in the live Stealth Trades session Monday morning at 9am ET. I will be putting together a watchlist of the top 20 or so stocks to focus on the second half of the year.
If you got this email, you have access. Just watch your inbox for the Zoom link Monday morning.
Best wishes for your trading,
