Earnings Season Just Woke This Giant Up

📰 In This Issue…

The market has been a meat grinder for the last four weeks. With the major indices taking a heavy beating, it has been a confusing environment to navigate—yet underneath the surface, true relative strength is shining through.

While most of the market has been bleeding, our last recommendation ($LLY) is already up 12%!

Now, earnings season is in full swing, and the market is finally showing signs of life. Historically, this exact inflection point is where the biggest monster moves begin.

Best Stocks To Buy Today

$NUE ( ▲ 5.22% ) – Long term trade

• The Context: Nucor is the largest and most diversified steel and steel products manufacturer in North America. They just reported their strongest quarter in over three years ($5.80 EPS on $11.25B revenue), driven by a third consecutive quarter of record mill shipments and expanding backlogs.

• The Setup: $NUE has been carving out an unusual 4-month base with clear volatility contraction, and it is now forming a clean handle. The broader steel group is showing serious relative strength alongside it.

• How to Play It: Because steel is a cyclical industrial sector rather than a high-growth tech industry, this isn't a "game-changer" disruptor—it's a pure institutional structure play. Use a tight stop loss: if the stock falls back inside the handle, the setup is violated and you cut it immediately.

🦅 Long-Term Trades — Fundamentally Strong Companies

These names have built massive bases (>3 months), so they're primed for long, big moves. This list focuses on fundamentally sound companies.

$VRT ( ▲ 4.4% ) – Long term trade

• The Context: Vertiv is the critical backbone of the AI data center boom, providing thermal management, liquid cooling, and power infrastructure. They just crushed Q3 earnings—posting 61% net sales growth, a 91% surge in diluted EPS, and over 100% organic order growth—while raising full-year 2026 guidance across the board.

• The Setup: Despite stellar fundamentals, $VRT ( ▲ 4.4% )  has been correcting and digesting gains in a massive 6-month base. Why? Because institutional money often rotates out of high-flyers before growth naturally decelerates.

• How to Play It: Today's earnings 17% gap-up is the wake-up call. Major reversals out of deep bases frequently kick off on an earnings catalyst. Don't go all-in at once—risk a small amount here to build a starter/test position, and look to scale in only if it proves it can break out of this massive base.

🎲 Long-Term Trades — Speculative

Massive bases (>3 months), primed for big moves. These companies may not be profitable yet, but the technical structure promises upside.

⚡ Swing Trades

Smaller bases (4–6 weeks, under 4 months), primed for tighter swing trades.

Health and Biotech

$ABCL ( ▲ 6.21% ) – Swing trade

• The Context: AbCellera operates an AI-powered antibody discovery platform that partners with major pharmaceutical companies to develop next-generation therapeutic drugs. While fundamentally still in its cash-burning R&D phase, the stock carries a 96 Momentum rank and has outperformed the S&P 500 by over 90% over the past year as money rotates into high-beta biotech.

• The Setup: Tight 4-to-6-week consolidation setting up for a high-momentum swing breakout.

📊 Trading Framework Reminder

Remember: Every long-term investment alert can also be played as a swing trade. When shorting, risk management is even more critical.

🦅 Long-Term Investors (3-12 Month Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/4 to 1/5 at Goal 1.

• Exit Signal: Close above 20-day EMA (your trend guide) or 50-day EMA.

• Why? Strong moves are hard to time at the bottom, but the 20EMA acts as a reliable trend filter.

⚡ Swing Traders (2-6 Week Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/3 at Goal 1.

• Final Exit: Cover the remainder at Goal 2.

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