Stock Trends

Relative leaders

Good morning,

Stock Trends is a bottom-up report but at my heart, I’m a top-down strategist first.

When the macro environment is as messy as it currently is, and we still haven’t completed our market bottom checklist, I’m hesitant to get too excited about individual stock opportunities. The market is a game of probabilities, and if most stocks are heading lower, the odds of picking a winner are lower, simple as that.

However, there is always a bull market somewhere and today I’m going to highlight nine names that aren’t just showing relative strength but the potential for absolute gains regardless of the market environment.

We’ll also look at:

• Three stocks on the Hot List that look most ready to rip

• The charts that move the S&P 500 technology sector

• and more!

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Relative leaders

AMT: American Tower

I showed the long-term potential last week and since then, AMT has bounced off its 50-DMA and continued to show relative strength, despite the backup in interest rates.

GILD: Gilead Sciences

Selling Gilead on March 6 at $117 definitely worked out for us but I still like the potential upside in this stock. Support in the $94-$98 range, and after it gets above the 50-DMA, we can talk about a breakout to all-time highs.

LMT: Lockheed Martin

This admittedly isn’t a great long-term trend, but LMT is hitting YTD relative highs and on the verge of completing a multi-month bottoming formation. Aerospace and defense has been a noted leadership group.