I get asked all the time, “What are the best stocks to trade right now?”
The truth is that there are always hot and cold stocks AND what’s hot today can be cold tomorrow. Timing is the key.
Although there are many ways to find the best stocks, one of the best ways is to simply check to see which stocks are moving up or down the most. Yes, you guessed it. I have scanners that do just that.
And I’m about to give you 20 free picks, courtesy of my very latest technical analysis…
10 Hottest Stocks (And Why They’re On Fire)
As of May 6, 2021 at 11:00 am ET, here are the hottest (bullish) stocks:
Each of these stocks has risen at least 5.28% over the past 3 trading days. Many of them just had great earnings announcements and are a great place to start.
You can supercharge your directional probability by using sector analysis. Here’s a chart of the 5-day performance for the Select Sector SPDR ETFs (www.sectorspdr.com):
Notice that the Materials Sector SPDR ETF (NYSE:
XLB) is a strong sector. Here is a look at the top 5 performers in the XLB:
Notice that Sealed Air (NYSE:
SEE) and Nucor (NYSE:
NUE) are two of the best performing stocks in one of the best performing sectors and great bullish candidates.
Remember, an object in motion tends to stay in motion! Stated another way, “the trend is your friend”.
Any of the stocks above are hot stocks, so I’ve answered your question for the bulls.
10 Coldest Stocks (And What to Play Next)
Now, you can flip the battery in backwards and look for the worst performing stocks over the past few days. Here they are:
The worst performing sector recently is tech stocks (see listing above). The worst performing stocks in the tech sector are shown below:
Again, these are also great BEARISH candidates.
Use basic technical analysis to time your bullish or bearish entries. One I like is a break > resistance + volume increase for bulls and break < support + volume increase for bears.
Now, this type of technical analysis is all about riding pre-existing trends.
But lately, my scanners have been showing incredible success in predicting shorter-term trends as well.
In particular, I’ve been tracking – and predicting — what I call “surge events.”
Every day, amateurs are dumping millions of dollars into the markets with no experience, strategy, or tools to speak of. But apps like Robinhood have the power to turn anybody into a trader, resulting in over $11 million being up for grabs every second of every day.
While these newbies are basically just throwing darts in the dark, I’m taking advantage of the incredible rise in trade volume and stock prices with the help of my new brute-force algorithm.
Click here to see the astonishing results so far, and how you can claim your share of the next round.
Talk soon,
Tom Gentile
