#1 Stock Article For The Next Week
Here it is – the list of NEW POTENTIAL BUYS for the next week!
In this article, I’m revealing TOP 3 stocks with more in-depth analysis + 7 more market leaders that are close to their buying points.
There are plenty of things to buy right now. More than I can handle. In my first search, I found 54 good stocks that were actionable. So, it was necessary to narrow it down. Down below is the outcome:
#1 Stock Article For The Next Week
MARKET OVERVIEW
nasdaq
The overall market is in an uptrend. Last week, the price of the Nasdaq 100 was slightly extended but for now, it seems to be in a good healthy uptrend.
This means that the price has pulled back a bit but is still above key moving averages and doesn’t look extended – the price is just 1.8% above the highest moving average. Usually, more than 3% looks a little extended (unless the price is not breaking out of the base).
Here’s the NASDAQ chart:
s&P 500
The S&P 500 is in a similar situation to the Nasdaq – in an uptrend, not extended.
Here’s the S&P500 chart:
If you want to visit an interactive chart, click here.
Overall, since these two indexes are in a clear uptrend and not extended, it seems to be a good time for taking positions. That being said, we always need to be cautious and ready to make adjustments in our decisions.
#1 Stock Article For The Next Week
nvidia (nvda)
- Industry Rank: 3/197
- Maximum Favorable Buying Price: 126.91
- Stop-loss: 119.97
- Profit Target: 147.72
- Position risk, %: 5.47
- Maximum position size of a portfolio, %: 5
- Pros:
- It’s in a leading industry.
- It is accumulated by the market and institutions.
- The stock is outperforming 99% of the stocks out there.
- Cons: The only reason I would hold back a bit from buying the stock is that it is already in an uptrend.
NVIDIA has been an obvious choice for a while. It may sound cliché, but the stock is still actionable.
Taking a small position with concrete stop-loss and profit target would make sense right now because the price is testing its smaller moving averages.
#1 Stock Article For The Next Week
celestica (cls)
- Industry Rank: 16/197
- Maximum Favorable Buying Price: 57.50
- Stop-loss: 54.56
- Profit Target: 66.34
- Position risk, %: 5.47
- Maximum position size of a portfolio, %: 5
- Pros:
- Very strong stock with good fundamentals in a leading industry.
- The stock is clearly under accumulation by the market and institutions.
- The accumulation by the market has risen compared to the last week, providing more support for the stock price.
- Cons: The stock price is not forming a base and hasn’t done so for a while.
#1 Stock Article For The Next Week
It would make sense to take a small position somewhere between the EMA 21 line and 55.83 and see how it turns out. The stop-loss price should be at a relatively high level, since the price is not breaking out of a base, adding some risk.
nu holdings a (nu)
- Industry Rank: 14/197
- Maximum Favorable Buying Price: 13.02
- Stop-loss: 12.11
- Profit Target: 15.75
- Position risk, %: 7.00
- Maximum position size of a portfolio, %: 10
- Pros:
- The stock is in the buy zone right now.
- The stock outperforms 95% of the stocks in the market.
- The stock is in the leading industry, providing additional support to the price.
- The stock is under accumulation by institutions and the overall market, making it safer to take a position.
- Cons: The stock price is lower than 15. In the CAN SLIM method, it is recommended to buy stocks with a price of at least $15 to lower the risk of buying penny stocks or too cheap stocks.
#1 Stock Article For The Next Week
Since the price has just broken out of the base and is in the buy zone, I would risk taking up to a 10% position in the stock.
7 more market leaders
Let me introduce you to some more strong stocks that don’t quite fit the CAN SLIM criteria but are actionable. The sequence starts with the best performer:
| Ticker | Company Name | RS Rating | Comments |
| SUPV | Grupo Supervielle ADR | 98 | The stock is adavancing very well but it doesn’t fit the CAN SLIM criteria because fundamentals and price don’t add up |
| PSTG | Pure Storage CI A | 97 | Sales growth is not high enough. Otherwise it’s a good stock. |
| THC | Tenet Healthcare | 97 | Sales growth is not high enough. Otherwise it’s a good stock. |
| GSL | Global Ship Lease CI A | 96 | EPS and sales growth are not high enough AND there have been quite a few downdays. These facts add some risk, otherwise, a good candidate. |
| FN | Fabrinet | 96 | Sales growth isn’t high enough. That being said, the stock has fairly good fundamentals. |
| TER | Teradyne | 94 | The stock is technically good but fundamentals are not good enough. |
| SEM | Select Medical Holdings | 91 | The stock price is close to breaking out of its base. A good buying point would be 35.08. A good stock but sales growth is less than acquired 20%. |
victor’s holdings
Here’s my stock portfolio as of this writing. The sequence starts with the best performer:
| Ticker | Company Name | % Of The Portfolio |
| NVDA | NVIDIA | 5.54 |
| CVLT | Commvault Systems | 10.88 |
| NTAP | NetApp | 11.54 |
| GSL | Global Ship Lease CI A | 5.15 |
| ATGE | Adtalem Global Education | 6.11 |
| TXRH | Texas Roadhouse | 7.68 |
| PINS | 9.87 | |
| NU | Nu Holdings A | 5.77 |
| RCL | Royal Caribbean Group | 7.13 |
| ALKT | Alkami Technology | 6.41 |
| AMZN | Amazon | 8.65 |
| HIG | Hartford Financial | 4.5 |
As a default, my goal is to have about 10% of each stock in my portfolio. Usually, I start with a smaller size (5% for example) and once the price proves itself, I’m raising the position to 10%.
But there are some exceptions – if the stock is a very good performer, I might increase the position to up to 25% of my portfolio. But this means that it has at least two stop-losses by that time.
conclusion
As you can see, there are plenty of candidates in the market right now. All of them are good. We will never know exactly which ones will do better in the future and which ones will not.
This is the reason we must always use stop-losses.
And honor them.
Use this knowledge as a part of your research, go out there and try things out!
P.S.
If you have any thoughts or questions about trading or investing, fill out the form here and I’ll get back to you.
#1 Stock Article For The Next Week
ADDITIONAL INFORMATION
stock REQUIREMENTS
Choosing the right stocks isn’t a game of chance; it’s a deliberate strategy. This time, with a plethora of options at my fingertips, I could afford to be pickier. So, what were the non-negotiables?
First off, industry leadership was paramount. I zeroed in on stocks from the top echelons—specifically, the TOP 10 out of 197 industries. Why? Because these represent the crème de la crème, the TOP 5% leading the charge. It’s not just about being good; it’s about being outstanding.
Next, the foundation matters. I looked for stocks with base depths signaling strength without overextension—ideally, between 10-20%, stretching up to 35% for those in a cup pattern. It’s a balance between stability and potential, ensuring our picks have solid ground beneath them.
Moreover, the up/down ratio needed to be above 1.0, a clear indicator of upward momentum. Similarly, the trend in institutional ownership couldn’t just be stable; it had to be climbing. These are the signs that savvy investors are not just watching but actively betting on these stocks.
The RS line and rating were the final seals of approval. An uptrend in the RS line and a rating of at least 85 out of 100 ensures we’re backing winners, not just participants.
By setting these stringent criteria, we’re not casting a wide net; we’re spearfishing for the best. In a sea of choices, we’re not looking for just any fish; we’re after the prize catches that promise not just to survive but to thrive.
TERMS AND DEFINITIONS
#1 Stock Article For The Next Week
Ever felt like trading lingo was designed just to keep amateurs out of the loop? Let’s simplify a couple of terms:
EMA 21 Calculates the 21-period exponential moving average, highlighting short-term trends.
SMA 50 Averages the price over 50 periods, showing medium-term trends without overemphasizing recent data.
SMA 200 Averages the price over 200 periods, revealing long-term trends by treating all data equally.
Pivot price is the optimal buy point of a stock is defined as the moment it transitions from a stable basing area or chart pattern and begins to achieve new highs in price.
Industry Rank Investor’s Business Daily’s system that ranks industries 1 to 197 based on performance. It guides us in CAN SLIM TRADING towards leading sectors.
U/D Ratio Measures stocks closing up versus down. A ratio above 1.0 indicates bullish sentiment, important in CAN SLIM TRADING.
RS Rating Ranks a stock’s performance on a 1 to 99 scale. I look for at least 85, showing strong momentum and growth potential.
RS Line Compares stock price to the market, plotted as a ratio. We seek an uptrend, indicating outperformance and strong momentum.
Volatility Measures how much a security’s price fluctuates over time. High volatility means large price changes, indicating risk and potential reward.
Institutional Ownership Trend indicates whether the stock is under accumulation or distribution by the institutions.
EPS (Earnings Per Share): A financial metric calculated by dividing a company’s net profit by the number of its outstanding shares. It indicates the amount of profit attributed to each share of stock, serving as a key indicator of a company’s profitability.
#1 Stock Article For The Next Week
STAGE 1: BASING OR BOTTOMING STAGE
Definition: A period following a stock’s decline where it starts moving sideways, forming a base. This stage signifies the easing of downward pressure and the beginning of stabilization, indicating that the stock is not in an uptrend yet but is preparing for potential future growth.
STAGE 2: ADVANCING OR UPTREND STAGE
Definition: The phase in which a stock breaks out of its base on significant volume, indicating a strong buying interest and the initiation of a new uptrend. This stage is considered the most opportune time for investors to purchase the stock, as it is expected to achieve substantial gains.
STAGE 3: TOP OR PEAKING STAGE
Definition: A stage characterized by the stock beginning to exhibit signs of losing momentum after its upward movement. The stock may start to move sideways with increased volatility compared to Stage 1. This suggests the stock might be reaching its peak, and the existing uptrend could be weakening.
STAGE 4: DECLINING OR DOWNTREND STAGE
Definition: This final stage occurs when the stock breaks down from its Stage 3 pattern and enters into a downtrend, marked by a sequence of lower lows and lower highs. It signifies that selling pressure has surpassed buying interest, usually serving as a signal for investors to sell the stock to mitigate further losses.
