Hey traders,
Markets have been wild lately, haven’t they?
Last Wednesday, the Fed wrapped up its meeting with a quarter-point rate cut — not entirely unexpected.
But what really rocked the markets was Jerome Powell’s comment about fewer rate cuts in 2025.
The markets didn’t take that too well.
In the last hour or two trading that day, the S&P and Dow futures sank over 3%, while Nasdaq futures plummeted 3.75%.
The selloff carried into Thursday and Friday morning before we finally stared to see a bounce and markets have rallied since then.
Even so, the markets haven’t recovered all of last Wednesday’s losses.
But here’s the thing: I’ve been in this game long enough to know there’s opportunity in every market move — even selloffs like this one.
That’s why, while lots of traders were panicking, I was doing something different.
I was looking for strength.
Why Look for Strength in a Weak Market?
If stocks can stay strong during a selloff, what do you think they’re going to do when markets start creeping back up again?
When the markets are falling apart, the strongest stocks often hold their ground — and sometimes even rally.
These are the stocks that have high odds of leading the charge when the market recovers.
Last Wednesday’s selloff was no exception.
That day, I spotted a handful of stocks that showed signs of strength, even as the broader indexes were tumbling.
Some of these stocks closed with green candles on Wednesday, holding up or even surging while most stocks — and the broad markets — sank.
Others had a red candle on Wednesday, but didn’t dip down to come anywhere their short-term 20 day trendline, which shows strength.
And a few came down to touch their 20-day trend lines but are already looking like they’re bouncing off them.
Your Turn: Analyze the Charts
Here’s a list of stocks I spotted during and after the selloff:
- EAT
- VONG
- LPLA
- AAPL
- EXTR
- FOX
- OLLI
- TSEM
- CLBT
- QUBT
- ECOR
- SOUN
- SMWB
- TEVA
- TARS
- EDR
- PLTR
Here’s what I want you to do:
- Pull up the chart for each of these stocks.
- Make sure you’ve got my favorite indicators on there: the 20-day, 50-day, and 200-day trendlines.
- Look closely at those stocks on a 6 month timeframe with daily candles and try to spot what each stock did during the selloff on Wednesday and in the days afterward that put it on my radar.
Ask yourself:
- Did this stock close with a green candle on Wednesday?
- If it closed with a red candle, how close did it get to its 20-day trendline?
- Has it already started to bounce back?
- Is it still respecting its short-term 20 day trend line?
Take notes on what you see.
“There’ll be a Quiz Next Week…”
Next week, I’ll be going through each of these tickers and explaining exactly what I saw in the charts that made me put them on his list in the first place.
Some of these stocks may be good trade opportunities in the coming weeks.
Others might just belong on your watchlist for now, as we see how they behave through the holiday season and into the New Year.
Remember, this is about learning to spot strength in the chaos.
The markets are always going to have their ups and downs, but when you can spot the stocks that hold their own during the tough times, you’re setting yourself up for success.
So go pull up those charts, take some good notes, and come back next week to see how you did.
Trade well,
Jack Carter
P.S. Epic Santa Claus Rally setting up? Here’s the #1 stock I’m watching right now!
