Jack Carter Trading

Everyone knows me as the guy who trades supercharged stocks.

So the question I often get is “Jack, how do you find these supercharged stocks?”

It’s a reasonable question and the answer is a lot simpler than you might think.

In fact, even though I use a custom-built piece of software…

You can achieve a similar result using tools right available to you for free.

Separating the Wheat from the Chaff

The first part is filtering down the thousands of stocks available on the stock market to a much smaller list of stocks with high potential.

For that, I look at lists of stocks hitting new 52 week highs.

There are plenty of free tools that will let you do this, like this Wall Street Journal list updated daily (or possibly even more frequently) or this page on Barchart.com.

Your trading platform might even have a ticker or some tool that does the same kind of thing. The specific tool doesn’t matter.

In this stage, it’s about whittling down the list to just those stocks that are hitting new 52 week highs.

So go look at a few different tools and see which ones are most comfortable for you. Then you can move on to the next step.

Spotting The Trend

Once you’ve got that list, it’s time to go to work. This is where my custom-built software makes things a lot easier.

But again, you can do this right from home with a little bit of effort.

What you want to do is set up your chart to show you a 6 month daily bar chart. That’s 6 months worth of data with daily candles.

The next thing you’ll need to do is set up 3 technical indicators.

Each platform is different, but what you want to do is set up these 3 indicators:

20 day EMA (Exponential Moving Average)
50 day EMA
200 day EMA

The 20 day EMA is going to represent the stock’s short-term trend.

The 50 day EMA is going to represent the stock’s mid-term trend.

And the 200 day EMA is going to represent the stock’s long-term trend.

I gave you some more detail about setting this up in this article.

Here’s what that looks like on my custom-built software. (I know it looks like an old Atari game. No need to laugh at it.)

What To Look For

Ok, assuming you’ve got your chart set up… now what?

Well, there’s a few things you want to look for:

First and foremost you want to make sure that the stock’s price has steadily risen higher over that 6 month period.

We want to avoid stocks that suddenly popped because of earnings or other news. This is because when stocks suddenly pop, they can just as quickly sink back down.

Those stocks are not good for the kind of trading we’re trying to do.

Stocks that have a nice, long, smooth, uptrend are the kind of stocks we are looking for.

The next thing to look for is that the stock is above all 3 of those indicators we set up before.

When a stock is above all 3 of those indicators, it gives the stock a very high likelihood of continuing that uptrend.

Think of it like high school physics: An object in motion will tend to stay in motion.

If the trend is a 6 month gently rising slope, we can continue it to continue.

The Secret Sauce

Now here’s the “secret sauce” that helps me win more trades than the average trader.

I look at the broad market and I aim to make trades that are trading in the same direction as the broad market.

How do I do that?

Simply use those same 3 indicators above to look at the SPY, the DIA and the QQQ.

Those are the tickers for the 3 major indexes. And you can look at them just like stocks on a chart.

If those 3 indexes are each above the 3 indicators we set up, that means the broad market is bullish.

And you can feel confident placing bullish trades on an individual stock.

What Now?

Now that you’ve got a set of stocks, you need to decide how to trade those stocks.

Once I find a stock I’m interested in trading, I like to place a trade that only keeps me in the market for a few days.

It’s not necessary, but that’s just another step I take that dramatically increases my odds of wining the trades that I place.

And even more than that, my favorite kind of trade to place is one that lets me win even if the stock decides to take a breather.

I actually recorded a video today teaching a strategy I use which puts all of these moving parts together.

If you want to see the kinds of results you can get using the steps I outlined above, I urge you to check it out by clicking here.

Trade well,

Jack Carter

Before we get started, I want to invite you to an event I’m holding right now where I’ll show you the strategy that gave me 16 straight wins on AVGO. Click here to check it out.

Now back to our top stocks for the week:

To help you discover the power of trends, every week, every week, I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

People have been calling the end to this trend since it started in late October… yet it’s still going.

So we’ll keep trading it.

Pay special attention to ANF, as it’s been on the list 5 of the past 7 weeks and it’s been going nowhere but up in that time.

Here are your 3 bullish picks for this week.

Remember, we always trade in the same direction as the broad market.

ANF
NTNX
QUAL

And don’t forget about last week’s picks, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with.
You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move.
You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

Whether you end up doing naked puts, covered calls or some kind of spread, this is really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)