Some of the fastest year-to-date (YTD) profits have come from steel manufacturers and alternative electric companies…
But the investors that rode these sectors were quick to cash in. And now, shares are rolling back…
The U.S. Steel Corp. (NYSE:X), for example, was up 40% YTD on January 12. Today, it has fallen 19% below that level.
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That doesn’t mean, however, that you should drop these stocks and run. These trades are far from over – and they’re still stacked with profit potential.
Instead, the dip lower should be taken as an opportunity – buy low, sell high, right?
Many of the companies within these sectors are taking up residence in my Weekend Watchlist.
As we get ready to head into a new week of trading, these are the stocks you’ll want to keep your eye on…
Weekend Watchlist: The Week’s Top 3 Stocks
There are 29 stocks on this list – but below, I’m narrowing it down to the top three…
- U.S. Steel Corp. (NYSE:X)
This has been one of my favorite steel companies to trade since the election took place. President Biden’s win sent a strong signal that 2021 would be the year of what I like to call the “rebuild and recovery” trade.
With a focus and investment in infrastructure rebuilding in 2021, it’s just natural for materials companies like X, Granite Construction Inc. (NYSE:GVA), and US Concrete Inc. (Nasdaq:USCR) to attract investors.
A lot of investors remember the steel industry from just a few years ago, when companies like Cleveland-Cliffs Inc. (NYSE:CF) and X were heading towards extinction. That changes now, as technology and restructuring of the businesses has given them a domestic edge. As a bonus, it appears that tariffs on Chinese steel will stay in place for now.
X shares took off from $16 to $24 in the early trading of 2021. Since hitting $24, shares have retraced back to $19, which is where the stock’s 20-day moving average sits to act as support.
Subscribers to my Night Trader service know this move well as a “sawtooth,” which means the stock is ready to fly again. You can learn how to join Night Trader by calling our VIP telesales number, 1-877-211-3024.
X will announce its earnings results next week on January 28, but between now and then we should see a “buy the rumor” trade move the stock back towards that $24 price target.
- Blink Charging Co. (Nasdaq:BLNK)
This alternative energy company crosses over into the alternative vehicle space, which is why I like it twice as nice as some companies.
Like X, BLNK shares just completed a pullback to their 20-day moving average and are considered a “sawtooth” stock. This means that we should consider the short-term profit-taking that has seen the stock lose 20% over the last six trading days as an opportunity.
You know, I often talk about “healthy corrections” and how they are not only healthy, but necessary for the market to continue a strong bull market run. Well, the same is true for stocks, and BLNK is in one of those healthy corrections as it landed on its 20-day moving average to find support.
Watch for the Trader’s Trendline to help the stock charge back up to the $57 level in short order.
- Medmen Enterprises Inc. (OTCMKTS:MMNFF)
President Biden’s win in November has put a new light on the cannabis industry as the public and lawmakers are now kicking around the idea of legalizing marijuana at the federal level. At this point, it starts to make sense, as so many states have decriminalized the drug and are now collecting taxes on its sale within their states.
If there’s anything that can get the lawmakers excited right now, it’s collecting more taxes as our debt balloons.
Now, all of the “usual suspects” are on my Watchlist when it comes to this trade, but one stood out.
MMNFF is a small, publicly-traded company in Culver City, California that owns and operates 29 stores and six growing facilities in seven different states. They’re one of the “small guys” in the space, but I usually find a lot of opportunities with the small guys when a market is breaking open.
The stock has spent the last few months on a wild ride, as it has bounced between $0.105 and $0.22 -but the technical trends on this stock are improving and beginning to show some bullish life.
The stock traded to $8 in 2018, a pretty good strike with the driving range from here. That’s a 92% move from its highs. To put that into perspective, Canopy Growth Corp. (Nasdaq:CGC) is 40% from its highs at the same time.
I’m watching the stock as one of my low-dollar trades as we head through the next six months. Keep an eye on it with me.
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