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Michael Walstedt Profile picture
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Dec 7 • 12 tweets • 7 min read
With solar names like $ENPH & $FSLR not looking great, who will be leaders of the next bull market?

One group in particular has been showing ALL the signs of leaders

I'll dive into this group in the thread below

👇
As @markminervini notes in his book, Trade Like a Stock Market Wizard, superperformance stocks very often come from 1 of 4 groups, and it seems like the potential leaders of the next bull market will be consistent with that model:

Drugs/medical/biotech $XBI $XPH

Why this group?
See the breakdown of the 99 RS names according to @MarketSmith below as of about 2 PM EST today

Over 1/3 of the top percentile of stocks in the market are in the biotech group (!!).

This group is overflowing with potential key leaders for the next bull market... so which ones?
Here is a general list of the 99 RS names, then I'll go into more detail for a few:

$AKRO $AMLX $ATNM $ATXS $AVDL $AXSM $BLTE $CPRX $DICE $FDMT $FENC $IMCR $IMVT $INBX $MACK $NUVL $PCVX $PRTA $PRVB $RYTM $VRNA

And many more. These are just 99 RS. Anything 90+ is strong...
Majority of these 99 RS names do not have fundamentals, but are trading on the potential of a drug/drugs in their pipeline. These names are strong and if they setup, I will play them. But you have to be smart about position sizing with no fundamentals.

$AKRO $DICE $PRTA $FDMT
Some names that have lower (but still great) RS rankings include

$HRMY good fundamentals, recent b/o of large IPO base
$UTHR good fundamentals, extended now but watching
$ALNY solid sales growth, beautiful chart
$TMDX accelerating sales growth, one of a kind product
Overall, this group is undoubtedly strong.

There are some that are currently setup and some that need some work, but you can bet I will be keeping a VERY close eye on these names.

Like a lion stalks his prey...

END thread💯
Shout out to @markminervini & @MarkRitchie_II for teaching me the skills I need to become a great trader

If you found this thread insightful or useful in any way

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michaelwalstedt.gumroad.com/l/modelbook
Other #biotech & drug-related names with RS rating of 98 & 97, respectively:

$ACET $BCAB $BIIB $DAWN $HALO (great fundamentals) $IDYA $ISEE $TRDA $VRDN $AVTE $CAH $GILD $GMAB $HAE $KDNY $MEDP $MRK $OLK $SILK $SRPT
Also not to mention, large cap biotech/drug-related names have been performing well

$MRK $LLY $BMY $VRTX

It makes sense to see this group having capital allocated to their businesses in the wake of COVID
@RichardMoglen does a great job of explaining relative strength this video, specifically in the first two minutes:

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More from @MichaelWalstedt

Michael Walstedt Profile picture
Dec 6
$SPX (or $SPY) & $IWM are exceptionally weak at the moment

Working on a wedge breakdown

Not to mention $QQQ has BEEN weak this entire time ImageImageImage
$ARKK has seen nothing but selling this year. This hasn't even touched the 200D since the market decline began late in 2021. It is so weak, it rode the 20D & 50D moving averages all the way down.

And it looks like it is going lower from here... Image
Seeing some pivot leakage today

$ENPH $WING $AEHR $NBIX ImageImageImageImage
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Michael Walstedt Profile picture
Nov 30
Below is a MEGA thread containing the 100 greatest winners from 1880-2009 📈

LIKE 👍 & RETWEET 🔄 to spread the wealth of knowledge💸

Charts are sourced from none other than the GOAT William O'Neil's "How to Make Money in Stocks"

But first, why do these charts matter?

👇
They go back to 1880. This shows the timeless principles that we are using here. It is the law of supply and demand. These patterns work because they are the effect of institutional demand, not the cause.

This strategy is RESILIENT
If your goal is to identify stocks with big potential, you need to know what will drive prices up. Institutional demand is what moves prices. They are are the biggest buyers (and sellers) in the market. They want growth in earnings, sales and margins.
Read 108 tweets
Michael Walstedt Profile picture
Nov 27
Have you heard great traders say "listen to price action" and "gauge feedback from stocks"?

Below is a thread on I will use the current setup in $PCVX to gauge the quality of the market environment this week

👇
If you follow @markminervini's strategy, you know 1 of the 8 superperformance keys is "trade small before you trade big"

This means you should be trading small positions sizes until individual stocks are giving you the positive feedback that it may be time to take on more risk Image
Regardless of the size we are trading, we know we are playing with probabilities and not certainties, so we always want to have the probabilities stacked in our favor.

Minervini refers to this concept in his book using a poker analogy - "wait for premium hands" Image
Read 13 tweets
Michael Walstedt Profile picture
Jul 26
OVERHEAD SUPPLY 101

There is no hard and fast rule overhead supply. For something like $DRVN, the OS is many months back and wouldn't drastically affect price now. However, the odds of it at least pausing in the $30-34 level are decent because it isn't years away.
$GLNG is a good example of a setup that has a lot of OS to contend with that is close by. If this stock moves up through this base, the odds of it pausing out at least once is very high, because the supply is very close to current price action.
$CTIC is an example where overhead supply is very far away and would not necessarily have a huge impact on the current setup. Despite a big decline, the OS is years back.

KEY: The more time that passes, the more likely that previous supply has already come to mkt at some point.
Read 6 tweets

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