If Today’s Market Drop Was a Test, These Stocks Passed

February 12, 2025

Hey Traders,

Did you see the markets today?

Right at the open, stocks took a dive.

The CPI report came out, and just like clockwork, traders sat on the edge of their seats waiting to see what it said.

Now, if you’ve followed me for a while, you know I don’t put a lot of stock in those CPI, PPI reports.

I think those numbers are all kind of bogus.

But that doesn’t stop the market from reacting.

Today, the SPY and QQQ both opened down over 1% from yesterday’s close, while the DIA gapped down a little less.

And just as fast as the selloff came, buyers started stepping back in.

By the end of the day, all three indexes had gained from their lows, and QQQ even closed higher than yesterday’s close!

The Stocks That Swam Against the Tide

Whenever we have a selloff, I always look at the stocks that managed to close stronger than the broad market for the day.

Why?

Because the stocks that stay strong while the market showed weakness are often the ones that go on to be powerhouses when the selling stops.

And while today wasn’t a full-blown panic, it was still a shake-up.

So I ran my scans to see what stocks held their bullish trends and were more bullish then the broad market.

Here are some of the names that stood out to me:

TPR
SAP
META
CLBT
QFIN

These stocks were more bullish than the broad market today — holding their bullish trends, and closing higher.

So What?

Now, here’s your task:

Pull up these stocks on your chart.
Use the criteria I gave you in yesterday’s post.
Study how these charts look — because this is exactly what we’re looking for when we place high-probability trades.

When you study those charts, you’ll see that the stocks are showing a nice smooth upward trend and bouncing off their 20 and 50 day trendlines.

You don’t even have to place trades on these — just do this simple exercise.

Once you start recognizing how trending stocks behave… and how time can burn away the value of an option, you’ll see exactly why stocks like these — combined with the special way we trade them — give us such a big edge.