Finding ‘Bullish’ Potential In Mixed Market

One way to look at this chop, skip, and slump market is to keep in mind that there is “bullish” potential scattered throughout the stock market.

Late last week ended a choppy streak with a skip to the upside across the market (mixed with caution over potential tech troubles). This week opened with all three indexes slumping once again.

Still, hidden in this wild back-and-forth are sectors and stocks showing strength and strong potential for moves to the upside. The difference is that they may not be part of a trader’s “normal” watchlist radar.

Think… coolers, houses, or tractors. All have a tinge of “inflationary trade” mixed into their current strength level and opportunistic outlook. These align with such companies as Yeti with its coolers and cups, Lennar the home builder, and John Deere with a long history of tractor manufacturing.

These tickers are showing strength that ranges from steady patterns across the charts, positive earnings outlooks, and higher seasonal or industry demand for their products. With hints of higher inflation, these tickers may only get more attractive through the summer.

“Inflationary” tickers may be outside the companies or sectors traders normally pursue. When wading into a new area of the market, there may be a little less excitement about the prospects and maybe more anxious anticipation.

Keep in mind that this new bullish potential may require more patience to let the tickers set up and mix with your trading plan. Expect a “choppier” look to the charts with any rise in prices not leaning toward explosive, but settling in for slow and steady appreciation of price.

No matter the overall market action, there always seems to be a ticker bucking for bullish action somewhere. Take what the market gives, and move forward.

We Saw: Market slumping across all three major indexes — 

• Pain at the pump, higher inflation ahead?
• Cryptocurrency shifts into unsteady action
• Tech stocks’ hefty losses drag down market

We’re Watching: New trades for quick in-and-out setups —

• Rotation that appears to be stalling market movement
• Keeping tight focus, eyeing any earnings moves
• Setups in: LEN, NFLX, ZM, TSLA, HUBS