Two Stocks Set To Break Out To New Highs

[RagingBull Elite]( Dear Undefined— Jeff Bishop here, We saw one of the worst selloffs of the past few months yesterday, though stock futures are now pointing to recovery. Regardless of what the overall market does, there will always be some outliers. Case in point, earnings this week provided some spectacular opportunities to play market divergence. In today’s issue of All-Access, we look at one of yesterday’s top post-earnings performers— as well as two stocks that could follow its lead. By the way, don’t miss Jason Bond’s next weekend trade dropping tomorrow in [Monday Movers.]( [I'm an image] Yesterday’s chart of the day is SNAP. The stock was a good display of the power of relative strength. Here’s a little context around what happened: Snapchat has been on fire since the company announced earnings last week. Shares rallied $34.52 to $44.18 in just four days. Then, the stock took a rest and pulled back slightly. Yesterday, shares opened almost at a critical psychological level at $40 after two days lower and a gap down. The stock regained its footing and closed 3.18% up on the day. If you traded it, feel free to skip right to The Battle Plan. If you missed it, read along. Here’s what the setup was intraday: [Alternate text] There are a couple of lessons here. First, make sure to keep a watchlist of recent movers. Second, go through your watchlist before the opening bell and a couple of times during the day. From time to time, you can discover some of the best setups, which you might have missed during the premarket prep process. Last but not least, remember to pay attention to the relative strength/weakness of the stocks to the overall market. Relative performance indicates interest in the stock. More often than not, stocks will continue to trend in the direction of the interest: weak stocks stay weak, strong stocks stay strong. While hindsight is always 20/20, make sure to familiarize yourself with the clues on the chart above. It might help you to spot an opportunity in real-time in the future. It’s not always easy to catch these big movers, but SNAP popped up on [Ben Sturgill’s Dark Pools watchlist]( several times over the past week. [I'm an image]( [Alternate text] If you’ve been a reader, you know that we’re big fans of tracking relative performance. Whenever something is stronger or weaker than it should be (based on news, fundamentals, sector, market, anything really)— we always take note. A good rule of thumb to remember is— the market is never wrong, but you may very well be. If you believe the stock has to go down, but it gets supported all along— chances are solid the market knows better, at least on a shorter time frame. Our job as traders is to listen to what the market tells us and act accordingly. Performance divergences often create great opportunities, and today’s SNAP is just the latest example of how powerful and often how easy relative strength/weakness trades can be. The thing is, you can’t just blindly jump on a stock that’s holding better (or worse) than the market or sector it’s in. But by cherry-picking these setups and aligning them with other data points [like Jason Bond does with weekend strategy]( traders can potentially generate impressive numbers. Here’re the two stocks we’ll be watching in the days to come: Fiverr (FVRR) - We write about Fiverr a lot, mostly because it’s been incredibly strong, both in relative and absolute terms. - As you may recall, a few days ago, FVRR was on our short watch, shall the market finally collapse. Our thesis was that relative strength wasn’t there anymore. Then earnings release came, and at the very least, it didn’t disappoint— the stock gained close to 8% on an otherwise disastrous market day. - FVRR seems to have switched back to what it does best— outperform. - As long as the bid is there and yesterday’s price action continues, the stock has the potential to run to all-time highs at $184.99. If the strength continues, here are some areas we like: - Buy Zone: 154 to 158 - Profit Zone: 177 for half, 182 for rest - Stop Zone: 159 or below [Alternate text] Generac Holdings (GNRC) - GNRC may not be FVRR in terms of absolute performance, but its relative strength has been stunning— while the market has been sideways, it’s been cleanly consolidating at the highs. - Generac reported earnings yesterday, and much like FVRR, they didn’t disappoint— the stock gained almost 5% and held steadily throughout the weak market day. - The trend is your friend, and GNRC further confirmed it’s in an uptrend, and it could continue higher. As long as the uptrend holds, here are some areas we like: - Buy Zone: 213 to 217 - Profit Zone: 247 for half, ride the rest till it forces us out - Stop Zone: 205 or below [Alternate text] Make sure to check out [Jason Bond’s Monday Movers strategy]( to learn about more setups like these. [Alternate text] [Why Patience Is Key In This Market Environment]( By Jason Bond of Jason Bond Picks [Alternate text]( [[Follow Up] Stocks Dip 📉, The State Of The Market]( By Kyle Dennis of Biotech Breakouts [Alternate text]( [There’s One Sector The Media Isn’t Talking About]( By JC Parets of Chart Hunter [Alternate text]( [Acquisitions Push These Stocks Higher]( By Jeff Williams of Penny Pro [Alternate text]( RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Click Here to stop receiving emails from support@ragingbull.com]( [Unsubscribe from all RagingBull emails]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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