Hey traders,
Remember that big selloff we had last week after the Fed meeting? Markets tanked, and chaos was everywhere.
But if you’ve been following me, you know that’s when I go hunting for strength — looking for stocks that can hold their own even when the markets are falling apart.
Last week, I gave you a list of stocks to keep an eye on. Today, I’m here to share some updates on how they’ve been performing since then and what we can learn from their movements.
EAT: A Recipe for Strength
EAT was one of the first stocks on my radar, and it’s been nothing short of impressive.
Even as the broader markets were crumbling, this one kept pushing higher, sticking to its strong upward trend. That’s the kind of stock we want to look for — one that can shrug off market weakness and keep climbing.
VONG: A Mixed Bag
VONG’s chart started off looking solid, but it’s lost a bit of its steam.
While it’s still in an upward trend, it’s not as strong as it was last week. This is a good reminder that not every stock will maintain its strength, and that’s why we keep monitoring them.
LPLA: Holding Steady
LPLA hasn’t made big moves…
But it’s staying above all three trendlines — the 20-day, 50-day, and 200-day. That’s a sign of a healthy trend, even if it’s not making headlines.
AAPL: A Bit of Trouble
Apple had been on a great run, but it’s now trapped below its 20 day trend line.
This doesn’t mean it’s game over, but it’s definitely something to watch. Trends don’t last forever, and it’s really important to recognize when a stock’s momentum starts to fade.
EXTR: Total Trend Broke Down
The total trend on EXTR Broke down.
You can see that, like AAPL, it’s now below its 20 day trendline.
FOX: Standing Tall
FOX is a big winner on the list.
It’s still making new highs and is well above its trendlines. This is a textbook example of strength in a weak market, and it’s the kind of stock that gives traders like me confidence.
OLLI: Too Far, Too Fast
Look at the volatility on OLLI.
See how it shot up and got far away from its 20 day trend line? And then it slammed down and touched it? Once OLLI gapped up and made those new highs, that’s your sell signal. That kind of gap up isn’t sustainable.
TSEM: Quietly Consistent
TSEM hasn’t been flashy, but it’s been reliable.
It’s sticking to its trend and looks like it’s set to keep moving higher. Sometimes the quiet stocks are the ones that surprise you the most.
CLBT: Staying Strong
Look at that trend.
CLBT is still doing it — a staying in a solid trend, above its 20 day trendline without getting too too far above it and crashing, like OLLI is.
QUBT: Red Herring
I had to throw a red herring into the mix. And QUBT was it.
Remember, what I always tell you: I like stocks in a minimum 3-4 month bullish trend. And QUBT had barely started a trend less than a month ago.
I also like stocks that are above $25. And for most of the last few months. QUBT was below $10, even if it did jump above $25 for a day.
Besides that, the huge gap up was definitely unsustainable. And sure enough. QUBT has started coming back down to meet its 20 day trendline.
Sometimes part of knowing what to look for in trending stocks is knowing what to avoid… and QUBT definitely gave us plenty of lessons in that department.
ECOR: Not Good Enough
The trend on ECOR is pretty short — it’s only really been going since mid-October. That’s barely 2½ months.
Plus, it’s been a pretty aggressive trend since then, bouncing up and down — getting far from its 20 day trendline, then slamming down to touch its 50 day trendline.
I like my trends to be a little longer and a little stronger than this. This one is too short and volatile to really get my attention.
Finally, look at the stock price. It hasn’t been above $18. Remember, I like stocks above $25. I’d pass on this one.
SOUN: Too Short, Too Steep
SOUN is another example of a stock with an overly aggressive trend that’s too short.
While it’s been above its 20 day trendline, look at when that started. Early November — and that’s being generous. The trend is way too short.
And look at how far it got away from its 20 day trendline. That’s not sustainable. I’d stay away from this one.
SMWB: Not Bad
SMWB is not in a bad trend.
But the stock isn’t above the $25 price range that I’d consider optimal.
TEVA: No Trend To Speak Of
Even though TEVA had a bullish day while the rest of the market was selling off on December 18th, look at that chart.
There’s no trend to speak of. It’s mostly sideways for the past 6 months. And a good chunk of that time, the stock spent in a “no man’s land” below both its 20 and its 50 day trend line. Not to mention it’s under the optimal $25 price range I like to trade.
That said, if you’re ever in a stock like this and it gaps up the way TEVA did about 10 days ago, that’s your signal to sell and take profits.
TARS: Looking Good
TARS is in a great trend which started over 3 months ago.
It’s been gaining ground day after day. It did get a little too far above its 20 day trendline in early November, but gently came down to touch it… and kept bouncing higher and higher. This is a stock in a solid trend.
EDR: Kind of Blah…
This one might have tricked you.
At first glance, you might think that EDR is a picture perfect trend. And that’s not technically wrong. It has bounced nicely off its 20 day trend line pretty consistently over the past 6 months.
But it doesn’t have the intraday range that I like. That means the candles representing each day are too short. This happens when the stock moves up and down very little each day.
That gives it a very low volatility — and as you might have heard me say, the stocks we trade need to have enough volatility to make the options “juicy” enough to trade.
With EDR, those candles are almost flat — so while the stock is moving up over time, it’s barely moving on any given day. And that makes it not worth trading.
PLTR: Looking Good
That’s a solid trend. Over the past 6 months, the stock has moved from about $25 to about $75.
Right now it’s coming back down to touch its 20 day trendline, but if it holds that support and turns back up, this is one worth considering.
Key Takeaways
Here’s what this week has taught us:
- Strength in a Selloff: Stocks like EAT, FOX, CLBT and TARS showed us that stocks that maintained their trend during a selloff can stand out and maintain their trends.
- Monitoring Is Key: Not every stock will keep its momentum. VONG and AAPL’s dip in strength is a great example of why we stay on top of our charts. No trend lasts forever — and recognizing when a stock is losing steam is just as important as spotting when it’s showing strength.
- Recognize Unsustainable Moves: Stocks like OLLI and QUBT show us how when stocks shoot up too far from their trendlines or gap up, it’s often a signal that they’ll soon come back down.
- Trendlines Matter: Stocks that stay above their key trendlines, like LPLA and TSEM, tend to offer more consistent opportunities.
- Avoid Volatility Without Substance: ECOR and SOUN illustrate why I prefer trends that are longer, steadier, and less volatile. Short, aggressive trends can be tempting but lack the stability for high-probability trades.
- Know What to Skip: TEVA and EDR may look promising at first glance, but TEVA’s lack of consistent trend and EDR’s small daily candles makes them poor candidates for trading. Having the smarts and the willpower to avoid stocks that don’t align with our criteria is critical, no matter how tempting they might seem.
- Look for Consistency: Stocks like PLTR and TSEM showcase solid, reliable trends. These aren’t flashy, but they’re steady, making them ideal candidates for trades that align with Jack’s strategy.
What’s Next?
If you’ve been watching these stocks and taking notes, great! This is how you build your trading intuition. If you haven’t, pull up their charts now and see what’s happening. Look at their trendlines, volume, and overall movements.
The markets will always have their ups and downs, but there are always opportunities for traders who know where to look. Let’s keep finding those strong stocks and stacking the odds in our favor.
By this time next year, you’ll thank yourself for taking the leap.
Trade well,
Jack Carter
P.S. This coming Monday, NVDA is coming out with a huge announcement. And no matter which way the stock goes, this is how I plan to play it!
