Powering a Trading Advantage<\/h2>\n
When traders believe a stock is about to move higher, they try to stack the odds as much as they can in their favor.<\/p>\n
So, we start and end our analyses with the technicals. But you shouldn’t forget to put the fundamentals on your side as well.<\/p>\n
And that’s where my alpha edge comes in…<\/p>\n
Instead of combing through financial statements, broker reports, and other mountains of data – a computer algorithm does all the heavy lifting.<\/p>\n
It’s a scoring system that uses dozens of factors such as profitability, earnings quality, and analyst revisions to reveal stocks with the right traits to outperform.<\/p>\n
For example, it factors return on equity to show which companies are generating the best profits relative to shareholder capital. Or it highlights companies seeing a rapid increase in future profit estimates by Wall Street analysts.<\/p>\n
By targeting factors that have historically delivered outperformance, I can quickly narrow the market’s next big winners out of a universe spanning thousands of stocks.<\/p>\n
In fact, since 2010, the top ranked stocks have returned 17% every year. That compares to 10% for the broad market index.<\/p>\n
Now here’s why my alpha edge is putting TSCO on my radar…<\/p>\n
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Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n TSCO currently generates an alpha edge rank of 92 (with 100 being the best score). This rank is driven by profitability, quality, and growth metrics.<\/p>\n Once the score shows which stocks have the greatest potential to move higher, the next step is to look for signs of breakaway momentum.<\/p>\n And that’s exactly what I’m starting to see with TSCO. Take a look at the chart below…<\/p>\n <\/p>\n Recently, TSCO traded back to the $240 price resistance at point ‘A.’ Then it spent the next several weeks in a shallow pullback.<\/p>\n But notice how that pullback was much smaller than the ones preceding it (red dashed lines).<\/p>\n That shows buyers are likely becoming aware of TSCO’s alpha components, and therefore more anxious to get in on each pullback.<\/p>\n Eventually, I expect TSCO’s buying pressure to generate breakaway momentum. So, a strong move above the $240 level will signal this niche retailer’s next big move is underway.<\/p>\n Best regards,<\/p>\n Clint Brewer <\/p>\nWatching for Breakaway Momentum<\/h2>\n
![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202304\/20230419-JMU-01_nrk345.png\")
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Analyst, Market Minute<\/em><\/p>\n