• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Unlock the Secret To Finding Strong Stocks in Weak Markets
Stock

Unlock the Secret To Finding Strong Stocks in Weak Markets

by October 21, 2024
by October 21, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

When the market is down, you can see which stocks Wall Street may be pumping money into. So on a Monday morning when the markets are down, this allows you to spot stocks that are bucking the intraday trend.

If you go to your Predefined Scans under Bullish Technical Indicators, you can see which stocks are experiencing sizable inflows. Let’s zero in on the Moved Above Upper Bollinger Band list.

FIGURE 1. PREDEFINED SCAN. We’ll focus on the last row, highlighting the stocks that have moved above the upper Bollinger Band on a day when stocks are largely declining.Image source: StockCharts.com. For educational purposes.

Clicking on that selection and arranging the next page by “U” (Universe), the highest large-cap stock with the strongest StockCharts Technical Rank (SCTR) score was Applovin Corp (APP). APP also held the top spot on the Top 10 SCTR Report in the Large Cap, Top 10 category.

FIGURE 2. TOP 10 SCTR STOCKS ON OCTOBER 21, 2024. Applovin occupies the number one position with a 99.9 SCTR score.Image source: StockCharts.com. For educational purposes.

A Little Background on Applovin Corp

Even if you’ve never heard much about Applovin Corp—a tech company specializing in mobile app marketing and monetization solutions—you still will probably recognize the name, as it’s been showing up on the SCTR reports for quite some time.

If you do your research, you’ll find that Wall Street has been exceedingly bullish on this stock for quite some time. You should start with StockCharts’ Symbol Summary; this will give you fundamental and technical info to begin your research. For example, APP’s one-year performance was an impressive +322.7%. But if you’re coming in late to the game and interested in scooping up shares of APP, you’ll have to check the technicals to see where a good entry point might present itself.

Let’s look at a daily chart of APP in light of the Bollinger Bands scan.

Applovin’s Daily Price Action

FIGURE 3. DAILY CHART OF APP. Note the SCTR line over the entire five months (it’s been that high for an even longer period).Chart source: StockCharts.com. For educational purposes.

In the SCTR line and APP’s relative performance against the S&P 500 ($SPX) in the panels above the price chart, note the following:

APP’s SCTR line has been largely above 90, indicating exceeding technical strength over multiple timeframes and indicators.If you look at the blue arrow pointing to relative performance, notice how the SCTR line prefigured APP’s superior performance against the S&P 500 long before it began outperforming the index. Although no indicator is a guarantee, the SCTR line is a strong tool for signaling the potential outperformance of a given stock.

Looking at the price chart, as the Predefined Scan pointed out, APP broke above the upper Bollinger Band, which is set to the second standard deviation. Only in rare cases can any stock maintain such a position. Typically, 90% to 95% of a stock’s price movements occur within the Bollinger Bands. There’s a strong chance of a pullback.

However, once a strong trend gets underway, price will often “walk” the Bollinger Bands—on the upside, it tends to “hug” the upper band, and the opposite is true of a strong downtrend.

The September price action illustrates this dynamic. In this case, it was particularly strong as APP’s “walk” took place above the upper band, signifying strong bullishness as the stock price rallied.

In the case that it pulls back…

Look to the middle Bollinger Band for a potential bounce.If APP’s price falls below the middle band, you will likely find support in the range highlighted by the blue rectangle, as it encompasses a market support level and the area surrounding the lower Bollinger Band.

What does momentum look like?

According to the Chaikin Money Flow (CMF), buying pressure looks strong, even though it’s receding slightly.But a volume-based momentum reading from the Money Flow Index, aka MFI (which is like a volume-weighted Relative Strength Index indicator), shows that it was “overbought” and is now receding, forming a bearish divergence which warns of a pullback.

Meanwhile, APP’s SCTR reading remains strongly bullish. So, if you want to enter a position, keep an eye on the potential support levels outlined in the chart (specifically, the dynamic Bollinger Band levels and the market-based support level in the blue rectangle).

If market conditions change, especially if new and unexpected market factors come into play, then a stop loss a few points below $123 might be sufficient enough for you to reassess the situation and readjust your setup for a new entry point.

Tip: Make StockCharts’ Predefined Scans Part of Your Trading Routine

Incorporating Predefined Scans into your market assessment routine is like having a radar showing which stocks are ready to move. You’ll know what to research, and after that, analyze the stock chart to determine when and where to jump in.

The Bottom Line

Using one of many StockCharts tools to scan the market is a smart and efficient way to get an edge in spotting opportunities. This article focused on stocks that bucked the intraday downtrend. Through a few scans, I found APP, which has been on the top of the SCTR list for quite some time. This type of scan routine can help you find other market prospects in the future. Remember: don’t leave opportunities to chance. Scan early and often.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • DP Trading Room: Natural Gas (UNG) Bearish Again?
  • Three Stocks to Watch This Earnings Week
  • Automate Your Scans with Ease! Sample Scan Library + Scheduled Scans Walkthrough
  • GNG TV: Equities Turn “NoGo” as Weight of Macro Factors Takes Toll
Share
0
FacebookTwitterPinterestWhatsapp

previous post
What’s the BEST Market Visualization Tool?
next post
Microsoft to roll out new autonomous AI agents next month, fending off challenge from Salesforce

You may also like

The Ord Oracle August 15, 2023

August 16, 2023

DP Trading Room: Black Swan Monday

January 27, 2025

Schwab: Surviving a Banking Bloodbath with a Smile and Swagger

April 26, 2023

Beware the Hindenburg Omen!

February 10, 2024

Granddad Russell, Grandma Retail and Grand Debt

August 2, 2023

Small-Caps Feel the Pinch “Under the Hood”

May 8, 2023

Why Now Might Be the Best Time to Invest in...

December 23, 2024

Three Growth Stocks Testing the Ultimate Trend Barometer

March 27, 2025

Find Stocks That Are BEATING The S&P 500 – In...

March 9, 2024

How the S&P 500 Reaches 6500 By March 2025

January 18, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Bullish Moxie Setups Working

    April 15, 2023

    Bearish Signals & Risk Management: Protect...

    February 26, 2025

    Astronomical Daze

    June 21, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here