- Surge score: 95/100
- % Above 52-wk low: 172%
- MFI reading: 59
- Sales growth: -11% but turning up
- Triple momentum: YES
GNK is up 108% year-to-date versus just 14% for the S & P 500 index. This strength is what gave the stock a surge score of 95/100.
In other words, GNK is stronger than 95% of stocks in the market. Shares have nearly tripled off the 52-week low and they trade within 8% of new highs. The only thing lacking with Genco is sales, which were down 11% last quarter – but that is rebounding. The company has strong to very strong demand for its dry bulk ships that carry iron ore, steel, grains and other high-demand commodities. And in turn, earnings are set to rebound strongly. The company is on track to record its first profitable year since going public in 2014. So, the fundamentals are definitely there.
On the technical side, I love the setup.
The trend is undeniably long. Our moving averages are stacked in the right order. And shares have been consolidating in the $15-$17 range for the last month. What I am looking for is a breakout to new highs on a surge in volume. A move above $17.00 per share would be my trigger to enter this trade. I want to see GNK close the day above that $17 level, preferably on volume of at least 2 million
shares traded. Then work a stop loss at $15.50 for an 8.8% risk.
- Surge score: 87/100
- % Above 52-wk low: 116%
- MFI reading: 62
- Sales growth: 165%
- Triple momentum: YES
With a market cap of $12 billion, ATH is a larger stock than I normally traffic in. But the setup is too pretty to pass up. Sales grew by 165% in the prior quarter and 2021 is proving to be a blowout year for company earnings.
The stock has been floating above the 20-day moving average since February and is now forming a textbook consolidation pattern tightening toward the right side of the chart.
The trigger to get long would be a move above $64.00 per share. I would work a stop loss at $60.00 to risk 6.25% on the trade. If ATH starts moving and closes the day firmly above the $64 mark, I would likely raise the stop to $62.00 to bring down the risk even more.
- Surge score: 86/100
- % Above 52-wk low: 111%
- MFI reading: 65
- Sales growth: 11%
- Triple momentum: YES
ADTRAN is a stock I put on my watchlist last week. The consolidation pattern continues to tighten, and volume is drying up – both signs of a potentially big surge higher. So I’m keeping it on the list for this week. Margins are healthy, earnings are growing, and the chart looks picture perfect. I’m still looking for a breakout above $20.60 which I expect to be accompanied by heavy buying. Don’t take the trade until the price confirms the move.
We could still get one last shakeout lower before the breakout
