Stocks & Sectors Showing Strength

The market feels a little weird. We had massive euphoric runs in EV names ($NIO $TSLA), SPACs ($QS $SBE), alt energy / fuel cell ($FCEL $LAC), bitcoin names ($RIOT $MARA), and i’m sure others I missed. All while big names like $AMZN $NVDA $FB $NFLX $AAPL remained fairly quiet.

$IWM has been leading the indices. It feels like there has been a disconnect between the indices and individual stock names. There are days where the DOW can be down 100s of points but the stocks you are holding are up for the day. Or your stocks are all down on the day and the indices are putting in new highs. Mark Minervini often suggests to stop looking at the indexes and focus on your stocks (‘try it for a year’). The past few months I’m starting to get his point.

Right now many of the sectors that were hot a month ago or even two weeks ago are cooling off and new sectors/stocks are starting to setup and look good. I’ve noticed commodity names in particular are looking pretty good. Gas/Oil names, Gold and Silver, Department stores and Retail.

$EXK breaking out two sessions ago from a flag
$QEP putting in a sideways base after making a run. Pulling back to 20ma support (my favorite kind).
$SM another Oil/Gas name setting up. Putting in a sideways base after making a run. Pulling back to 20ma support.
$JNUG gold miners putting in higher lows. 5ma crossing up 10ma and riding up moving averages.
$TECK putting in a sideways base after a making a run. Pulling back to 20ma support.
$FCX putting in a sideways base after making a run. Pulling back to 20ma support. Breaking out two sessions ago.
$MIK pulling back to 20ma support and breaking out 3 sessions ago
$JWN putting in a sideways base after making a run. Pulling back to 20ma support.

One of the great things about going over hundreds of chart setups and breakouts is you begin to quickly see all the similarities. Look at each of these charts and notice what’s happening. Notice what happened just before they had previous breakouts. 20ma support, flag, range expansion combined with volume expansion…. Get to know the setups and you’ll build confidence when putting on positions. You’ll know when it’s working and more importantly when it is not.

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