Weekly Update: These Stocks Are SOARING!
Good evening, and welcome to this week’s edition of Stealth Trades!
Want to make big money in the stock market?
There are three things you need:
1. Strong market
2. Strong sector
3. Strong stock
The first one is obvious. A bull market puts the wind at your back. “A rising tide lifts all ships.”
You can make money in bear markets, but it is a heck of a lot easier when everything is going up.
Next, you want to focus on the strongest sectors. Institutions tend to invest around a theme. If they are bullish on solar, they buy a dozen of the top solar stocks. If it’s AI they are loading up on Nvidia, Super Micro Computer and AMD.
Wherever they are putting their capital, that area of the market is going to rise faster than the rest. So, keep an eye on which areas are outperforming over the last 1-, 2- and 3-month periods.
Once you’ve homed in on a hot sector, finding the top stocks is easy. Most sectors have a few dozen stocks at most. You can quickly flip through the charts to find the strongest candidates.
Right now, the crypto space is red hot. Money is flooding into mining stocks and crypto brokers like Robinhood.
We are also seeing nuclear as a clear outperformer.
But over the last two weeks, another sector has come ripping higher. That sector is quantum computing.
I’ll be honest – I don’t even understand what a lot of these companies do. My brother is a software engineer, and even he can’t explain it to me.
But Wall Street is getting aggressive in a hurry…
IONQ is up 160% since March.
QBTS is up 180% in two weeks! There was a textbook breakout buy on May 8 then another opportunity coming out of a high tight flag on May 15 (see below).
I missed them both 🙁
Luckily, we did get our Alpha Stocks members into QUBT…
They are sitting on a 55% gain in just over two weeks.
Right now, a lot of these stocks are extended. I would love to see them pull back or at least pause for a bit to digest the recent moves.
But this is an area I suggest keeping a very close eye on.
When there is a strong bull market like we have today and a sector seeing huge moves on a big uptick in volume, I am willing to be a bit “looser” with my entries.
If it is not a perfect breakout pattern or precise pullback to support, don’t be afraid to lean into these stocks while the momentum is strong.
Here are six stocks I am watching: QBTS, QUBT, QMCO, RGTI, IONQ, and ARQQ.
Other companies like IBM and Alphabet are developing quantum computers, but these are the best pure plays I have found so far.
Best wishes for your trading,
