Chris Gessel: Looking At Winning Stocks From Past Corrections | Investing With IBD

TL;DR

This episode of the Investing with IBD podcast discusses the current market trend, bear market indicators, potential follow-through day, and stocks with growth potential.

Transcript

okay everybody welcome to the investing with ibd podcast sponsored by direction it's wednesday may the 4th 2022 and chris kessel and i are in the office the new office so arusha and i did the uh final episode from our old office and now here we are in the new office so joining me today on this may the fourth for all you star wars nerds uh we've got... Read More

Key Insights

• 🫥 The Nasdaq's position within trend lines suggests the potential for a longer bull market runway.
• 🫥 Stocks with strong relative strength lines during bear markets often emerge as leaders during market recoveries.
• 🛟 The recent Fed meeting served as a catalyst for a market rally, driven by the market being oversold and in need of positivity.
• 🫢 The current market trend favors cyclicals, oil and gas, and miners, with some potential rotation towards growth stocks.
• 🫥 Stocks with growth potential include ATKR, OLIN, and DINO, which display strong relative strength lines and positive fundamentals.

Questions & Answers

Q: How can investors identify potential market leaders during bear markets?

Investors should focus on stocks with strong relative strength lines and upward trends during downtrends. These stocks often indicate leadership potential and the ability to outperform the market once a turn-around occurs.

Q: How does the current market compare to past bear markets?

The current market is showing similarities to past bear markets, with a focus on cyclicals, oil, and gas. However, there are also stocks with growth potential emerging, indicating a potential shift in market sentiment.

Q: What is the significance of a follow-through day in the market?

A follow-through day is a market rally day that confirms a new uptrend. It is an important signal for investors as it suggests that the market has the potential to continue higher and identifies stocks that may be poised for growth.

Q: How should investors position themselves in anticipation of a potential follow-through day?

Investors should stick to their routine, continue running screens for stocks with strong relative strength lines and tight bases, and look for stocks that are near highs. It is recommended to start with smaller positions and gradually build up as confidence in the market rally increases.

Summary & Key Takeaways

• The hosts discuss the current market trend, referencing the Nasdaq and its position within the trend lines.

• The episode explores past bear markets and identifies stocks with strong relative strength lines that emerged as leaders during those times.

• The hosts analyze the recent Fed meeting and its impact on the market, suggesting that the market was oversold and in need of a rally.

• Stocks with growth potential are highlighted, including names like ATKR, OLIN, and DINO.