The Fastest, Youngest “Horse” in the Stock Market

Momentum helps us find the consistent winners… [Turn Your Images On] [The Fastest, Youngest “Horse” in the Stock Market]( [Turn Your Images On] [Adam O'Dell, Chief Investment Strategist]( Humor me for a moment… Imagine you’re living in the Great Depression. You’ve lost your job … your stock market wealth has evaporated … and your family’s bean farm is drying up in the Dust Bowl. With little other options, you head to the horse race track with your last $5 in your pocket. Maybe all you need is a stroke of good fortune to get back on your feet. You take a look at the horses available to bet on and spot Zippy Zane near the top. Zippy’s placed well in a lot of races over the last five years. He’s old, but he’s in great shape and eats only the finest hay. The jockey and handlers know their stuff. Ol’ Zippy is a consistent bet, but because of that, he doesn’t pay out much. The odds are 2-to-1. For every dollar you bet on Zippy, you get $2 back. That might help you dig yourself out of the hole someday, even if it means missing a few meals. But then your eyes are drawn to the bottom of the chart … where you spot Easy Pete. Easy Pete is a godforsaken mess of a horse. Skin and bones — lazy to boot. Cross-eyed, which you didn’t even think a horse could be. A handful of times, he hasn’t even left the starting line after the gun. But he does have one win under his belt, from five years ago. And by golly … those odds! 500-to-1! If Easy Pete can get it together for just one more race, you’ll never have to bet again! If you’re desperate for a decent return, what horse do you pick? Trick question. The answer lies in the middle of the pack… Find the horse who’s been climbing the ranks over the last year, while also offering a great potential return … Momentum Mack. Investors are faced with a similar dilemma right now. The pandemic bubble, and the bear market that’s followed, have warped their idea of investing. A lot of the previous bull market’s Zippy Zanes are starting to act a lot more like Easy Petes. Their track record over the last year is a mess, and they’re not the horses they once were. The Easy Petes, on the other hand, are long past their heyday … and are worse off than ever. But the Momentum Macks are the up-and-coming horses in the stable … or, stocks in the market. They’ve made big moves over the last year, and history says that these stocks present both the best odds of success … and the best returns for the chance you take on them. If you’ve followed Stock Power Daily for any length of time you should know that Momentum is one of the six factors in my proprietary Stock Power Ratings system. Today, I want to dive deep into the Momentum factor. I’ll show you which class of stocks presents the highest Momentum across the board right now — and should provide the best returns moving forward. --------------------------------------------------------------- [Turn Your Images On]( [Did You See All These $5 Peak Market Gains?]( Adam’s brand-new strategy has identified FIVE amazing opportunities in the growing $5 stock mega trend. He believes each one is primed to shoot up as much as 500% or more this year. During Adam’s special presentation, he shares details on his top $5 stocks. Stocks that you can capitalize on right NOW, for the shot at some truly once-in-a-decade type gains. [Click here to watch the “$5 Stock Summit” now.]( --------------------------------------------------------------- 2 Stocks With High Momentum — and High Returns To be clear, momentum is just one of the six factors you should consider when making any stock purchase. But in a market where few stocks are making new 52-week highs … and most are simply treading water … screening for momentum is a good way to start your search. You can even find stocks like these in sectors where most other individual companies are struggling. Take Analog Devices Inc. (Nasdaq: ADI) from the Tech sector, for example. The stock scores a 90 on Momentum in the Stock Power Ratings system and a strong 82 overall … taking some dings on Value (being a tech stock and carrying that premium) and Size (being a $91 billion behemoth). [Turn Your Images On] [(Click here to view larger image.)]( Yet, you can’t fault its momentum. Just look at the price over the last year. [Turn Your Images On] [(Click here to view larger image.)]( ADI has defied the bear market and risen more than 13% from a year ago … while many of its tech stock peers have struggled. The company is proving to be a standout tech stock to own in the bear market — and that’s significant. Looking at the Technology Select Sector Tech SPDR Fund (NYSE: XLK) with its average momentum score of 63, and the average return of just over 2%, tells us just how significant it is. Common sense says we should buy the stocks that are going up … because they’re going up. Yet, our instinct is to look for “bargains” in the stocks going down. It’s part of that “buy low, sell high” mentality that you so often hear the talking heads boast. But that’s a trap because the stocks going down have little to no upside momentum to help them recover. And trying to time when a stock has actually bottomed out is tough — if not impossible. Buying a stock that’s already in a sustained uptrend means you’re buying into a stock that’s already going in the right direction. Who doesn’t want that?! --------------------------------------------------------------- [Turn Your Images On]( From our Partners at The Oxford Club. [Unusual Passive Income Investment (Found on a Golf Course)]( One man turned $1,000 into a decadeslong passive income stream... eventually reaching $100,000 per year! All from a single golf course tip. [CLICK HERE TO FIND OUT HOW HE DID IT]( --------------------------------------------------------------- Here’s another standout example in an industry that has largely struggled over the last year: Ulta Beauty Inc. (Nasdaq: ULTA) from the Consumer Discretionary sector. [Turn Your Images On] [(Click here to view larger image.)]( ULTA rates a very strong 98 on momentum and a 91 overall, placing it in the “Strong Bullish” camp. Meanwhile, it’s absolutely crushed the wider consumer discretionary sector… rising 30% over the last year as the broader Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY) has fallen more than 14%. [Turn Your Images On] [(Click here to view larger image.)]( My point is this… Every stock sector out there is going to have both its Zippy Zanes and its Easy Petes. The untouchable mega caps that won’t lead the market, but won’t fall apart… And the high-risk, low-odds names that you can only count on for a one-in-a-million moonshot in the best of times. To get ahead, especially right now, you have to split the difference and find the stocks in the middle of the pack. The ones with strong, recent momentum that can carry them through to become big winners in the next bull market. Again, the other qualities are important to note here. Analog Device’s Size and Value will hold it back, as will Ulta Beauty’s. But a class of stocks that decidedly don’t have that problem are the small-cap, less-than-$5 stocks [I’ve been focusing on]( with my 10X Stocks readers. On top of scoring well on a majority of the other factors, almost all of these stocks rank well on Momentum — and that’s amid a class of stocks (small caps) that have been some of the biggest laggards over the past year. These stocks present the best opportunity for market-crushing returns over the next year. And you can get the full details on why, [right here.]( To good profits, [Adam O'Dell signature] Adam O'Dell Chief Investment Strategist, Money & Markets --------------------------------------------------------------- Check Out More From Stock Power Daily: - [LITHIUM MINERS NEED THIS “STRONG BULLISH” CO.]( - [AVOID “HIGH-RISK” OTLY — THERE ARE BETTER $5 ALTERNATIVES]( - [WHY ADAM HAS $5 (AND 500%) ON HIS MIND]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2023 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](