Home » Watchlist Update: Is This the Start of a Real Market Downturn?

Watchlist Update: Is This the Start of a Real Market Downturn?

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Is this the start of a real market downturn?

Maybe it is… Maybe it’s not. 

As I’ve noted recently, the market has been extremely weak under the surface for months now…

And it’s certainly possible that the indexes and big name technology stocks could finally succumb to that and head lower.

We’re not seeing that happen just yet, as the S&P 500 index is only off of its all-time high by about 2%.

But the fact is that most breakouts are not working right now.

Instead of seeing the follow-through move we would normally expect, breakout stocks are getting sold off before they’re able to gain any real traction.

The stocks are sound, and the setups look good. But it seems to me that institutions are selling into the strength.

I don’t mean for this to sound scary, but I would not be upset to see a 10%-20% correction to “reset” the market.

This would set up a lot of fresh new opportunities and clear the way for another leg up on this bull market.

For now, we’ll continue to abide by our trading rules for the new Watchlist stocks below.

However, you always want to be aware of how much risk you’re taking.

If you feel uncomfortable with this kind of up and down volatility, consider using smaller position sizes or setting tighter stops.

And when markets are shaky, don’t hesitate to take some profits and lock in a gain if you have one.

JB Hunt Transport Services

JB Hunt Transport Services (JBHT) is a $21 billion logistics services company focused on trucks and transporting stuff via those trucks.

And as you know, moving stuff via trucks is a major market in high demand right now.

Here’s how the chart is setting up:

Daily Chart of JB Hunt Transport Services (JBHT) -- Source: TC2000
Daily Chart of JB Hunt Transport Services (JBHT) — Source: TC2000

And here’s how the stock is setting up with my Stock Surge Indicator (SSI):

  • Surge score: 91/100
  • % Above 52-wk low: 46%
  • Sales growth: +27%
  • Triple momentum: yes

After a healthy run in the first half of the year, JBHT has taken a breath to consolidate near the $200 level.

A shakeout move down to $185 likely hit some stops, so the stock should be even further consolidated into stronger institutional hands.

Look to buy on a breakout to new high ground.

Republic Services, Inc.

Republic Services, Inc. (RSG) is a $43 billion waste management company focused on serving municipal and residential customers.

The other side of the business processes and sells cardboard containers, newsprint, aluminum, glass and other materials.

Here’s how the chart is setting up:

Daily Chart of Republic Services, Inc. (RSG) -- Source: TC2000
Daily Chart of Republic Services, Inc. (RSG) — Source: TC2000

And here’s how the stock is setting up with my SSI:

  • Surge score: 93/100
  • % Above 52-wk low: 57%
  • Sales growth: +14%
  • Triple momentum: yes

Sales growth of 14% isn’t huge for most companies. But in the waste management sector, it is fairly substantial.

After a one-day pop higher on big volume at the end of October, RSG has tightened into a low-risk 5% range.

RSG broke out of two similar bases this year, each leading to solid short-term gains.

Intercontinental Exchange, Inc.

Intercontinental Exchange, Inc. (ICE) is the $76 billion operator of market exchanges, clearing houses and listings venues that some of you have likely heard of or even traded with before.

Here’s how the chart is setting up:

Daily Chart of Intercontinental Exchange, Inc. (ICE) -- Source: TC2000
Daily Chart of Intercontinental Exchange, Inc. (ICE) — Source: TC2000

And here’s how the stock is setting up with my SSI:

  • Surge score: 88/100
  • % Above 52-wk low: 25%
  • Sales growth: +18%
  • Triple momentum: yes

Levi Strauss made a fortune selling pick, shovels and denim to hopeful miners in the gold rush of the 1800s.

He found a way to profit without ever making a bet on whether or not he would find gold.

The same thing goes for exchanges like ICE. Futures contracts on crude, gold, natural gas, electricity and agricultural products all trade on the Intercontinental Exchange. And the company gets its fees whether traders win or lose.

We have an opportunity for an early entry on ICE if the stock can break above Thursday’s highs while only risking about 6% on the trade.

Lastly, if you’d like a step-by-step walkthrough on how to best take advantage of these weekly trades…

Be sure to check out my recent article, How to Follow My Weekly Trades, to know where I’m buying so that you can follow along.

Embrace the surge,

Ross Givens

Editor, Stock Surge Daily

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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