This Market Is On FIRE… These 2 Stocks Could DOUBLE Next

Ajouté : 2026-05-19

[00:00:00]The US stock market has been surging for six weeks straight. And if history is any indication, this is just the beginning. Today, I'm going to show you where the money is flowing, what areas I'm focused on, and two new stocks I'm buying right now. Now, I do this every week. So, if you're not yet a subscriber, click the button, subscribe to the channel. That way, these videos will show up in your feed. So, let's look at today. Now, this is the S&P 500.

[00:00:27]And boy, what a roller coaster we were on today. The market gapped down this morning, sold off all the way until lunch and then rallied to recover pretty much all of the losses. And the initial sell came from a new inflation report.

[00:00:43]US Bureau of Labor Statistics announced that CPI, consumer price index inflation, you see right here, rose 0.6% in April. It doesn't mean inflation 0.6%. And it means the rate things were going up increased by half a percent.

[00:01:01]And if you look at the official report, man, they make this stuff look boring.

[00:01:04]Unadjusted 12 months. So versus April of the previous year, inflation currently sitting at 3.8%.

[00:01:13]And a lot of this, of course, driven by energy costs, primar oil, and gasoline.

[00:01:18]But that doesn't mean everything is a loser. In fact, the recovery today is a really nice sign of strength. It shows that nothing can hold this market back.

[00:01:30]Not above average inflation, which typically lowers the odds we're to get rate cuts. Not a war with Iran, not a closed straight of oruse, not rising oil prices. Despite all this, the index continues to paint new highs. And that is the kind of market you want to be invested in. So, let's look at our industry strength indicator. Now, this shows us uh it it tracks the top 40 areas of the market, top 40 subsectors in terms of performance over the last 1, two, 3, six month periods, etc. Here.

[00:02:00]And by the way, if you're not already a member, click the link in the description or just go to tradewithross.com. We've made you a QR code down over there. Uh scan that, you can join. It's five bucks for the entire year. You'll get this indicator, live weekly one-hour sessions with me, access to my team, a ton of stuff. It's an absolute no-brainer. It's just five bucks. But what this does is show us what's rising the most. And all things being equal, the sectors of the market showing the biggest gain, the ones going up the most are the ones where the big institutions are buying. That's what's leading the market. And semiconductors have been an absolute tear. A lot of these are very extended. However, you got Intel up over 200% in two months. You got AMD that's double. These are very, very stretched.

[00:02:45]But there's a couple of other areas actually rising up the ranks and this is what I want to see. One of them crypto and digital payments. It has been a a crypto winter for my uh crypto guys out there. There have massively lagged and now they're beginning to rise up the ranks. So it's one of the top performing areas over the last two months. Over the last one month it's a big time leader.

[00:03:06]And there is a stock that benefits directly when crypto is strong and that is Coinbase. Now, Coinbase is a uh crypto what do you call it? Exchange broker. I don't know their fans, but it's where you go log in, you buy. And and stands to reason when Bitcoin, Ethereum, and the crypto coins are surging, more people are opening accounts, more people are buying, they're generating more commissions, and when crypto is stalling, less so. And that directly affects the bottom line of Coinbase. So, if you can time the moves in the crypto market, let's just overlay Bitcoin with this. Notice it moves just about lock stock and barrel, right?

[00:03:49]When when Bitcoin and blue rises, so does Coinbase. When it pulls back, so does Coinbase, right? Pretty much moves together. And we have Bitcoin rounding out the bottom here, beginning to run higher, and Coinbase setting up to follow suit. So, I think this is a stock we can buy in here uh on a breakout above this kind of 210 215 area. tried to peek its head out there on Monday, pulled back a little bit today with with the overall market weakness, but this is exactly the kind of shallowing formation we want to see off the lows after it's had a big decline. And this is a big big decline. It's what is it 60 70% drop uh in the last year. You want to see that consolidation. You want to see it absorbing that supply, forming this kind of rounded bottom. You want these uh uh dips to become shallower and less severe. and then it should break out and push uh higher from there. So if I bought in here at a break of 220, I'd be targeting kind of this 275 range for the first piece, followed by a big target of more like 320 340 right up in here. So I think Coinbase uh is viable on a breakout above today's high. So above $218. I would put a stop at the low of that.

[00:05:07]you've got the support of the 10 to 50 day moving averages and you should have a nice clean run higher assuming cryptos stay strong. Now the other stock I want to look at uh is in the rare earth sector and rare earth metals are another one that gets really hot really cold but notice it is beginning to rise up these ranks and in fact over the last year it is the leading group of the market second being semiconductor so it's not a group we want to let go and one stock in this group is trronics holdings ticker trx Now the relative strength rating on this you can see is a 96. That means in terms of price performance over the last year and it's it kind of frontw weightights the last quarter it is outperforming 96% of stocks in the market. Okay. So it's got the things we need. We want high RS.

[00:06:02]We want a stock that's leading. And when we get a little bit of weakness and I guess this morning is the closest thing to weakness we've seen. I want to buy this on pullbacks. And if you go back and look here at TRO X, it's a bit sloppy, but you see kind of the same thing we're looking at in Coinbase where you get the big decline, it forms this rounded bottom, kind of compresses, tightens up, and then breaks out and pushes higher. So here's the breakout.

[00:06:27]Okay? And the rule for these new stage two breakouts, especially strong ones like this that are running, you know, 30, 50%. always buy the first touch of the 50-day moving average. Okay, so the two lines on my chart, this is the 200 day simple moving average. This is the 50-day simple moving average. Notice back here in March, it came and just kissed it and surged higher. Continue to print highs, pushing right to it right here. I think this is a perfect pullback buy in a very strong market in a very strong group and you can buy it in here and not risk a ton of money. I mean it's sitting at around 878 post market. I can risk call it 7% six maybe seven stop at like 815 and it's also through earnings. It had uh uh an earnings report on last Wednesday.

[00:07:23]The stock dipped into the 50 holding right in there consolidating. So, I think it's a great time to add on. So, I'm recording this after the market close. Uh, I wanted to see how today shook out, how we finished. Obviously, if you have a big nasty down day in the indexes and you close near the lows, and this is true for stocks as well, the odds of a continual push lower the next day are much much higher. Okay? So, if you get a big nasty in a stock, it closes the low, odds are it's going to keep going lower the next day. Same thing closes the high. But, as we looked at in the beginning, the market actually recovered the bulk of the morning dip.

[00:07:55]So, feel a lot better about the market here. So, I think I can place a buy um let me do like a th000 shares here. I'm not going to buy it postmarket because look at how wide that bid ask spread is $865 by $9. No thank you. You're not going to sucker me in on that. But I can do an at the opening buy. Uh so, it's called a a market on open order. All right. Now, I I'm going to check this before the market open just to make sure the thing hasn't, you know, absolutely fallen out of bed or something, but all things being uh in all likelihood, it'll be right there. So, I'm going to go ahead and send this. Uh I'll check that in the morning. I want to get filled.

[00:08:31]I'll go ahead and place my stop-loss order on that. So, that's the two stocks I'm looking at. Coinbase and TRXtronics Holdings. Two different groups. Now, I will show you one more thing, and I don't mean to scare anybody. I think the bull market is still well in effect.

[00:08:48]fact I think will be materially higher 3 6 12 months into the future. But we are in the area where we could start seeing a pullback. Let me go back to my charts and show you this. If you look at the S&P 500 and we just draw this back, let's put it in logarithmic scale from these peaks where the market tends to get extended.

[00:09:14]You'll notice we're kind of right there near that upper band right there where stock tend to kind of pull back. So, you know, on on a large enough scale, sure, stocks are going to revert to their mean, continue trending higher. That's why just dollar cost averaging for 30, 40 years is always going to work. But in the near term, we are up massively since the March 30th low. The entire S&P index up 17%, which is huge for the largest equity market on the planet. I'm not saying we're peaking. I'm not saying we're going to crash. I'm saying we could see a small kind of stall, pullback, hesitation period in here, which would be more than welcomed by me.

[00:09:56]It would allow these stocks to set up new bases to compress to get ready for the next move higher. But I tell you all of this to say I've been very very aggressive on these positions. Uh I I'm going to take about a halfsiz position uh on this. So, this was like a $20,000 buy in IPX. I'm generally been doing about, you know, roughly 20K per swing trade. I'm going to set these back to about 10 grand. Now, your numbers may be different. You may step down from 200 grand to 100 or from 50 bucks to 25. I don't know. And I'm not telling you what to do, but just for me, when we get kind of extended, you know, like buy extended stocks. when the market gets a bit extended and I think we're do a bit of a pause consolidation there. I'm going to begin to just size down a little bit.

[00:10:43]Okay, so just wanted to offer that to you. Do with it what you will, but still taking these two trades. I'll let you know how they work. If you're not already a subscriber, be sure to click the link uh to subscribe to the channel.

[00:10:53]And again, that $5 Black Ops special still going on. Just click the link in the description, scan the QR code or go to tradewithross.com to get signed