Home » Watchlist Update: No Need to Catch Falling Knives

Watchlist Update: No Need to Catch Falling Knives

We continue to see the same action in the markets that we saw the week before.

Selling is the dominating force right now, with only a few pockets of the market seeing strength.

Those groups are almost exclusively energy-focused, such as those in oil, coal and even solar companies.

I’m bringing you one of those companies in today’s Watchlist…

But what’s behind the selling is the fact that hedge funds are seeing record redemptions.

In other words, investors are pulling their money and saying, “no more!”

This is forcing those large funds to liquidate positions, which is sending stocks lower, especially the mega-cap names they loaded up on over the last couple years.

That’s why we are seeing the greatest declines in the big, “innovative” companies that saw huge gains in 2020 and 2021.

We’re not going to try to catch any of those “falling knives” this week.

Instead, we’re looking for our usual set ups, which means stocks that are holding up well in this down market and are primed to break out of longer-term consolidation periods.

I’ve got three of them for you today, so please read on for all the details…

Crane Co.

Crane Co. (CR) is a $6 billion manufacturer of industrial products for a wide range of markets, including commercial and military aerospace, oil and gas and even wastewater applications.

Here’s how the chart is setting up…

Weekly Chart of Crane Co. (CR) — Source: TC2000

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

  • Surge score: 85/100
  • % Above 52-wk low: 21%
  • Sales growth: +13%
  • Triple momentum: yes

Crane has traded in an incredibly tight 14% range for almost five months now.

Even a raging bear market has not been able to drive this stock lower.

As you can see in the weekly chart above, shares have traded sideways for almost a year.

Once CR breaks out of this range and gets into new high territory, this one could make a substantial move to the upside.

Regeneron Pharmaceuticals, Inc.

Regeneron Pharmaceuticals, Inc. (REGN) is a $70 billion biotechnology and healthcare company focused on creating medicines to treat a variety of different diseases.

Here’s how the chart is setting up…

Weekly Chart of Regeneron Pharmaceuticals, Inc. (REGN) — Source: TC2000

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

  • Surge score: 86/100
  • % Above 52-wk low: 42%
  • Sales growth: +104%
  • Triple momentum: yes

Regeneron is a name we added to the Watchlist back in late January, but it never broke out.

The stock finally appears to be finding buyers, as it has broken out of a long “pendant” formation.

This one is buyable here at the current price.

And given the extended consolidation period, you only need to risk about 6% on the trade with a stop beneath the swing low at $598.

Natural Resource Partners L.P.

Natural Resource Partners L.P. (NRP) is a $490 million natural resources company that collects royalties from leasing out its portfolio of mineral properties.

Here’s how the chart is setting up… 

Weekly Chart of Natural Resource Partners L.P. (NRP) — Source: TC2000

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

  • Surge score: 98/100
  • % Above 52-wk low: 175%
  • Sales growth: +90%
  • Triple momentum: yes

The entire energy sector is red hot right now.

Oil is getting all the press, but coal stocks are surging as well.

Case in point, Natural Resource Partners.

Technically, a series of higher highs and higher lows outline a beautiful uptrend with no signs of slowing down.

I would consider buying at new highs with an 8% stop.

Before I go, you’d like a step-by-step walkthrough on how to best take advantage of trades like these…

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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