We call them SURGE stocks for a reason.
This week, we kicked off with the three new Watch List stocks that included Albemarle Corporation (ALB). And this stock really hit it out of the park on the first pitch.
The stock opened at 176.22 and quickly started surging. It hit a high yesterday of 192.76 and even settling down is up big yesterday by 7.42%.
Albemarle Intraday Price Source Bloomberg
And in a moment, I’ll go through the company and how I traded it. But for you, this surge stock is proof that you need to open and read each and every one of my Traders Daily Direction first thing each morning to get the stocks that you need to trade as quickly as you can.
And to see more on this company and the others in this week’s Watch List, click here.
How I Traded It
I eat my own cooking. As a newsletter editor – this is important for me to get the same treatment for my own money as you get from my Traders Daily Direction.
I placed my trade just after the open at 9:31 EDT and got my fill at 179.00 that was above my buy price of 176.25.
I then sold half of my stock at 186.32 as the stock continued its surge. But I still have half of my original surge stock on my own books. And I now have raised my original stop from 163.15 to a current 188.25.
And I see more upside for this surge stock.
Albemarle Corporation Recap
Albemarle (ALB) is a specialty chemical company in Charlotte, North Carolina. It has a focus on plastics and polymers as well as a host of other products that run the gamut from cleaning to agricultural products. And it also provides the pharmaceutical industry with plenty of compounds.
And it also has products that work with one of the must have elements of lithium. Lithium of course is one of the must have for electronics and electric vehicles (EVs).
Sales suffered last year with the US and other economies going through lockdowns. But in the recent quarter – the company reported a big snap-back in sales with growth returning at a rate of 12.24%.
Operating margin is good at 16.20% – but it could do better for a return on shareholders’ equity that is currently running at only 7.60%.
Insiders have a small percentage of ownership – but they have recently been buying. As of July 4, they have added some 4.52% to their overall holdings of all outstanding shares in the company.
And here’s the chart that I worked up ahead of Monday on the stock:
- Surge score: 87/100
- % Above 52-wk low: 143%
- MFI reading: 48
- Sales growth: +12%
- Triple momentum: YES
Albemarle’s fundamentals are a little weaker than I’d prefer, but the chart setup looks fantastic.
The stock has consolidated in a textbook cup and handle pattern.
A 25% cup depth and 10% handle would dictate a sell target near $218 on a breakout.
But volatility is high, and a lot of stocks are not seeing the usual follow through here lately.
And I wrote: So, don’t be afraid to nail down profits early if ALB makes a decent move in the first 3-5 days. My entry trigger would be $176.25 with a sell stop at $163.15.
Now, this worked for me – and hopefully for you if you got onboard.
The Other Watch List Stocks
The other two watch list stocks for this week are also working.
The Joint Corporation (JYNT) is up by 4.02% today with some more in the works.
The Joint Corporation Intraday Price Source Bloomberg
And for Horizon Therapeutics (HZNP) – the stock came off of a quick up – and has settled down – but is still up by 0.43%.
Horizon Therapeutics Intraday Price Source Bloomberg
And for the full write ups for The Joint Corporation and Horizon Therapeutics – you need to review my Watch List for this week right here.
Another Trade Idea for You:
I am ramping up my insider stock buying research that is part of my Surge Stock Indicator (SSI).
I have developed a new product that we’ve just launched here at Traders Agency called Stealth Trades. And this is all about my proprietary analysis that finds stocks with big surges in the works that are tipped off by a series of under the radar indicators that I find that the market misses that sets up big stealth wins.
And to get the full rundown on how to profit by buying stocks that have under-noticed gains in the works to profit from inside our Stealth Trades at Traders Agency. Click here to watch.