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A bull market run of any sort is a powerful thing to behold.
From the cautious buying in the beginning all the way up to the top’s feeding-frenzy, it’s an exciting ride…
But it’s only exciting if you got in early.
No one wants to sit on the sidelines while a stock shoots skyward. But if you wait to get in until after it’s already moving higher, it might be too late – and you could end up losing money.
Everyone wants to be a part of these bull runs. But most investors don’t have the data or the simple systems to know when it’s time to get in.
But I do. And today, I’m going to share it with you.
You see, the beginning of a real bull market run has a signature.
It’s a technical move that’s simple to identify…
And it’s your key to discovering the market’s next bull run before it starts…
Two Stocks That Just Experienced a Silver Cross
Those familiar with technical analysis – even at the beginner’s level – have probably heard of the golden cross. Basically, a golden cross occurs when a stock’s 50-day moving average crosses above its 200-day moving average.
When both trendlines start trending higher after this pattern occurs, it’s a sign of growing long-term momentum.
My studies show that golden crosses are good for long-term investors that are looking to buy-and-hold for periods of six months or longer. But there’s something more effective for shorter-term traders – something that identifies a breakout trend, not a strengthening long-term trend.
It’s called the silver cross.
Like the golden cross, the silver cross occurs at the crossing of two trendlines. In this case, the 20-day moving average is crossing above the 50-day. The shorter-term trendlines (20- and 50-day) mean that this cross is more sensitive to shorter-term trend changes, which allows us to identify a short-term trend that is getting ready to turn stronger.
The use of the faster-moving trendlines also gives the benefit of getting into trends early, before the crowd. Beating the crowd to an early trend is always an effective way of increasing your profits.
Let’s get right to what we want to talk about – putting the silver cross to work to find a few trading opportunities in this market…
The table below lists the silver cross stocks from this morning’s database run. The results hit several sectors and price ranges. Remember, we’re only interested data and trends here, not the market’s noise. That’s where the opportunity lies – in the data.
Now, two of these seven stocks are worth taking a closer look…
- EPR Properties (NYSE:EPR)
EPR is a real estate investment trust (REIT) based in Kansas City, Missouri that invests in amusement parks, theaters, and ski resorts. Their ski resorts are smaller and in the east, compared to some of the larger resorts that I like to frequent through the winter. As a result, they’ve had a rough year, but the trend in the stock is improving as the vaccine begins to make its way into our arms.
EPR’s chart just saw a silver cross as the stock makes its way back above the $40 level. This price has been a site of resistance for the shares for the last three months as headlines continue to slow entertainment stocks, but the data is telling us that the trend is setting up for a breakout.
My chart read on EPR sets a target price of $45, an 18% jump from current prices. We should see that move materialize over the next four to six weeks as the company’s earnings date approaches on February 24.
For now, watch the move above $40 to get more technical traders in the buying mood, which will help fuel the additional move to $45.
- Cigna Corp. (NYSE:CI)
Healthcare is anything but sexy, but the chart for CI is getting attractive.
The new administration is likely to bring some clarity to the healthcare situation in the United States, which will give a fundamental life to companies like CI. In addition, we’ve seen cost-cutting efforts combine with the pandemic – that’s right, the pandemic has helped some healthcare stocks as claims have been lower – to put these companies in bullish trends.
CI shares jumped out of bed and started running the day after the election in November. There’s your hint that the healthcare companies have an interest in the new administration.
We saw a silver cross of CI shares on October 23, 2020. 13 days later, the stock was trading 20% higher. There’s a good example of the power of watching this trading pattern.
Shares became overbought (crowded) in Late November and December, which is why we saw the stock dip back to $200.
Now, the stock is flashing another silver cross, and my chart read is targeting a move to $250 – an easy 10% rally.
Both of these stocks are simple ways to cash in on the next bull run. But the real key to making money is bigger than just identifying stocks to buy.
First, you have to change the way you think about success.
Abe Wagner grew up deep in poverty. Today, he makes $300K a month. And he didn’t do it by working harder…
He did it by thinking smarter.
He did it by thinking rich.
Introducing Abe’s new eLetter, Think Rich or Die Broke. In each free issue, Abe will reveal the truth behind the biggest lies you’ve been told about money. And he’ll share with you the true secret to success.
To sign up, just click here, and receive all of Abe’s knowledge straight from the source himself.
This weekend, I’ll send you your stock watchlist for the week. Keep an eye out…