The Top Stocks To Trade Right Now!

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My partner Mark Boucher writes a newsletter called The REED$TRADER Daily Commentary that he publishes every day and one of the great things about Mark is Mark is one of the best stock pickers I have ever seen. He's probably the best stock market timer I've ever seen, and absolutely one of the best stock pickers that I have seen. What we're gonna do today is we're actually going to take some time and just go through what some of the top stocks to trade right now are so you can see for yourself.

Mark publishes a top stocks to buy list and a bottom stocks to short or sell lists. This list that he puts together utilizes relative strength, which is one of the 10 Irrefutable Laws of trading success and it also uses what's called the PEG ratio and there's some other factors that are also brought into here, but basically, this is a list of the top stocks in the universe to trade by this criteria. Every day he publishes what the top stocks are for that day, starts off with a list for the month, and then that gets updated every day. 

Right now, this is the long list, the top list for January, as of last night. You can see here, the top names in here, there's 10 names in here and the names in green would be the ones to focus on. We have VIST, CRT, PDDD UFPT, TGLS, GFF. Now, the relative strength seen here too similar to Investor's Business Daily relative strength, this is the strength of the stock against all of the other stocks in the universe. If a stock has a relative strength of 99, it is the saying it is stronger than 99% of the stocks in the universe, so it's comparing the stock against other stocks. Then we have what's called the WAM Relative Strength, WAM Relative Strength is something that I created and Wam Relative Strength measures the strength of the stock against itself. If we look at the top name on this list, it's CPRX, it has a relative strength of 97, but a WAM Relative Strength to 39. What that tells us is that this stock is very strong relative to the universe, but it's actually weak compared to itself and so let's just look at that. That was CPRX and you can see it had been going up and up and up and up and then it got crushed yesterday. This is why as a WAM Relative Strength of 39, because it is weak relative to itself. But it's still gone up. You can see, just in summer, it's gone from six to 16, it's almost tripled. This means it's one of the strongest stocks in the universe, but just because it's strong against other stocks does not mean you should be buying it. It's weak against itself and now it's quite dangerous and needs to settle down at this moment. We can look at another name, like PDD. PDD has a 99 Relative Strength and a 94 WAM Relative Strength. If we go to PDD, and we look at this one, this, you're going to see this looks different. This one is near a ties, it's right near a ties, it's been going up quite a bit. It's basically more than doubled since October, but it's up near a tie, so it's got both the strength against other stocks and the strength by itself in its favor. That's why it's on the list, so get one more in the long side. Let's look at VIST and one of the things I want you to notice in this table, it lists the industry group. 

One of the other 10 Irrefutable Laws of trading success is plurality. We want to see stocks that we want to buy be strong in a strong sector. Not that just the stock itself be strong but the sector be strong and if we look through here, look what we see, we see oil and gas, we see oil and gas. You see building and construction, building and construction, retail retail, computer computer, there is some plurality here. A lot of energy stocks in this list if you go down just a little further, because they've been strong all year. We're going to look at VIST. When we look at VIST, you can see it's just been going up and up. This stock has gone from six to 16, just like CPRX at 16 is about as high as it's been. It made new highs in the last year last week, so this one is strong across the board. It's strong against other stocks, it's strong against itself. It's in a strong group and it's got strong fundamentals, so this is a stock that we really like. 

Let's look at the shorts. We look at the shorts, these are the weakest stocks, weakest stocks against other stocks, weakest stocks against itself and we're going to look for plurality here as well. We look in here we'll see some plurality, we see computer software, we see computer software, we see computer software, you see auto, auto, auto, so there is weakness here. Here's another auto, retail wholesale automobile. We're gonna look at a couple of these here. We're gonna look at CVNA, which was the weakest one to top of the list. This was kind of tough, you can see this one was trading over $50 in August, and now it's six bucks, it has gotten clobbered. The biggest issue with this one is it doesn't have a long way to go, but you can make a lot of money shorting a $6 stock, which can be really really careful because there's a lot of risk that these can pop. Let's look at another one, we're gonna look at Rivian RIVN. With Rivian, this one looks better. You can see it's on its lows, again, it's come down from 40 down to 18, but it's 18, not six, so still got room to go down. Let's look at one more. We will look at Coinbase. Coinbase is a crypto exchange. You can see Coinbase has come down from 100 down to 50. Now, it's been rallying off its lows, the rally off its lows so far this year. This would be another one that we'd be looking at, It's a $53 stock. 

Well we go through and we test this. You can take this list and you can test it on a variety of patterns, particularly trend following patterns. If you take this list and you test it on your trend following patterns, you're going to see the it performs amazing, especially if you use it and can context with what the overall market is doing. This long list if we're in a bull market, you see stocks in here that explode. You'll see some of the best trades you'll ever make on stocks that come out of this long list. If you test this with trend following in a bull market, it will blow your mind how good the trades will be. We're not in a bull market right now, we're actually in a bear market with a lot of chop. As such, we're looking to be more than a long short book, selectively long, selectively short, so here's our shortlist. We could be coming through here looking for stocks to selectively short. In a bear market, if we get a true bear market, like a volatile bear market, a lot of these names on this list are amazing as well. These have been good, there's been some shorts have gotten clobbered in the last year that came off this list, but the environment is still been not purely a high volatility bear market. If you trade stocks, this list is a phenomenal resource for you. Phenomenal. 

There's so much more in the Reeds Trader Daily Commentary other than what I'm showing you here tonight, but the list itself is invaluable. If you want to find out more about this, I put the link here. You can get a free trial to try and look at it and see what you think. The link is right here https://www.reedstrader.com/Daily-Commentary. What we're trying to do here is get you set up with the best knowledge, the best techniques and the best resources to help you invest and trade at an elite level. I'll be back with more next week. For the rest of the week. I hope you have an amazing week. I hope you trade great. I'll see you next week. God bless. Bye