Buying stocks that are both in strong uptrends and in strong sectors has been a winning strategy of late.

In fact, my last three Bullseye Trades have been big movers in the direction of my trade alert right from the start!

The first was the shipping company ZIM Integrated Shipping Services Ltd. (ZIM):

The next was the agriculture company Archer-Daniels-Midland Company (ADM):

And, as I detail in this article, this past week’s Bullseye Trade actually outpaced both of these stocks by rallying as much as 21% intra-week this past week.

Folks, the ability to identify trade setups like this is invaluable.

If you want to find out how I went about identifying the third straight big mover on my Bullseye Trade list this past week…..

We’re not out of the woods yet, so I chose a Bullseye Trade that was showing relative strength, improving momentum, and “smart money” accumulation.

This past week, traders started out looking at a flat open for the QQQs right from the get-go. 

Even with inflation and the Russian-Ukrainian war still fresh on everyone’s minds, though, traders became even more bullish on Monday and Tuesday, before the market pulled back a bit mid-week.

It’s important to keep in mind that the most powerful short-term rallies tend to happen within bearish market structures, and right now the QQQs have yet to prove that a new and sustainable uptrend has begun.

Therefore, as key economic concerns and global tensions continue to dominate, I remain cautious on how far the market’s recent bounce can extend. 

As traders, though, we have to respect that the market LOVES to confound, which means we have to trade the trends that currently exist, despite the backdrop.

I chose Lululemon Athletica Inc. (LULU) because it was showing multiple forms of bullish evidence, including:

• A bullish Ascending Triangle with the bulls pushing the stock higher against the 13/30 hourly momentum averages.

• Improving momentum
• “Smart Money” accumulation.

• Sector relative strength

Even ahead of Q4 corporate earnings, which were announced on Tuesday after the market close, the stock started to break out as a result of all this positive technical evidence.

Then, when the earnings were finally released with a 3.1% earnings beat, the stock surged further.

As a result, for the 3rd straight week, this past week’s Bullseye Trade reached my price target of $330 in very short order. 

And, while I was unable to enter the trade based on my entry parameters, it is noteworthy that the deep analysis I conducted also helped identify the 14 Apr 22 $320 calls that I recommended to members, which rallied from the 03/25 close of $15.7 to the 03/30 high of $66.43 (+323%). 

To YOUR Success!