rossgivens

rossgivens

Watch the advancing vs. declining volume on the cash indexes. I watch for >90% up days (opportunistic buying) and >90% down days (panic selling). Friday was the first panic sell day since the market bottomed in June. We need to see this met with huge buying soon. Another 90% down day would mean a high chance of re-testing the lows and potentially making new ones.

rossgivens

This is the anatomy of a breakout trade. First, you want to see a large advance in the stock. At a minimum, price should be at least 30% above its 52-week low. Stock will often be up several hundred percent before forming this pattern. Next, you want to see a series of pullbacks - each with a shallower depth than the last. Mark Minervini refers to this as a...

rossgivens

Argenx is another biotech stock setting up in a textbook breakout pattern. Shares traded up through resistance Monday morning on good volume, but the move was ultimately held back by a nasty overall market. ARGX still held up well, and will likely continue its advance higher.

rossgivens

Based on the work of Richard Wyckoff in the 1930s, these are the 4 STAGES OF THE STOCK CYCLE.

rossgivens

Murphy USA (MUSA) is breaking out into new highs, triggering a low-risk entry point. Relative strength has been surging all year as shares steadily outperformed the market. After a gap up earning move on July 28, the stock consolidated for three weeks with minimal pullbacks - a sign that buyers are not selling and the stock is moving to the strong hands. Sales...

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Clearway Energy (CWEN) is showing all the signs of a pending breakout move higher. The stock has formed a base from November to present with price action compressing and pullbacks getting shallower from left to right - a sign that supply is no longer coming to market as the market works through sell orders in the $37 - $38 range. CWEN is an alternative energy...

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OTTR just completed a 7-month cup with handle pattern, triggering a buy at the $70 mark. The fundamentals are incredible for this company. Sales are growing at 40% per quarter and earnings are up by triple digits. It meets all 9 of William O'Neil's CANSLIM scan criteria, and even has bullish 2023 estimates from analysts. There is a risk, however. First and...

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Kinsale Capital Group (KNSL) is a mid-cap property and casualty insurance provider currently breaking out into new high ground. The insurance group is ranked in the top 10% on the basis of relative strength. In other words, insurance stocks are outperforming 90% of the market. And Kinsale is the #1 name in the group in terms of earning per share, relative...

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McKesson is breaking out from a textbook volatility compression pattern. After a strong run higher in Q1, shares have formed a base with pullbacks shallowing from 12% to around 6% - a sign that sellers have been exhausted and supply is no longer coming to market. This will allow the stock to accelerate freely as demand increases for this stock. Fundamentals look...

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MGPI is setting up in a potentially powerful breakout pattern. MGP Ingredients is a distilled spirits company. Alcohol stocks are often seen as defensive which would make sense why we are seeing money flow into these names right now. But the group as a whole saw a huge advance in 2020 during COVID lockdowns, so do not underestimate their power to perform. The...

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Enphase Energy is a solar stock setting up in a textbook breakout pattern. Pullbacks have shallowed from over 50% at the start of the bear market down to 14%. This volatility compression shows accumulation in the stock and a transfer from weak hands to strong. The numbers are tremendous on this one. As you can see from the MarketSmith numbers at the bottom of the...

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Treehouse Foods is a packaged foods stock showing tell-tale signs of a pending breakout. The stock is completing a double cup with handle pattern on a nice volatility compression. Pullbacks have shallowed, and the stock now trades in a tight 2% range. This allows for a low-risk entry on the breakout. We are also seeing volume dry up in this tight range - a sign...

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ITCI is a biotech setting up for a potential breakout at the $60 level. The biotech sector is showing market-leading strength off the lows with many stocks in this group at or making new highs. Relative strength ranks 97/100 and the company has seen triple-digit sales growth in each of the last four quarters. Look for a breakout above the $60 mark on...

rossgivens Updated 

BA is breaking down and setting up for a powerful move lower. Biden has essentially declared war on shipping companies for hiking prices post-COVID and has threatened to lower prices by executive order. This was all the bulls needed to head for the exits and take their profits after a strong run in 2022. Relative strength has broken down over the last 2 weeks as...

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ZIM is breaking down and likely heading much lower. The stock has been a market leader in 2022 along with other shipping stocks. Profits are up triple digits after shippers realized they could 10X their rates to transport cargo containers after the pandemic. The White House has essentially declared war on these companies and institutional investors are heading...

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Richardson Electrics (RELL) makes components for microwaves, power grids, generators and data display monitors. The stock is a rare sign of strength in an otherwise abysmal market. RELL is completing a cup with handle pattern that began in January, and the stock is currently just 5% from new all-time highs. The relative strength line has been surging for the last...

rossgivens

NDLS is setting up in a textbook breakout pattern. After climbing 323% off from the COVID lows, Noodles began forming a large consolidation base. Profit taking resulted in an acceptable 26% retracement, followed by successively shallower dips that ended in a tight 6% range. The small-cap restaurant chain saw earnings turn positive last quarter and sales...

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DAR has formed a nice ascending triangle consolidation pattern for the last several months. Pullbacks have shrank from 26% down to 9% while exhausting supply near the $79 area. The stock is now trying to breakout. Fundamentals are strong with compounding double-digit sales growth and a 200% jump in earnings last quarter. Risking 7% to see if this move has legs...