Finding Leading Stocks

Stocks gapping up to, or near, new highs this morning:

MU, WDC, STX, INTC, TTMI, TER, ALAB, AMD, VSH, LSCC, STM, TSM, and ADI.

Most Traders Miss This Part of CAN SLIM

This is what acceleration looks like.

One thing I teach inside the Momentum Trading Strategy Course is that it is not just about finding stocks with big earnings and big sales.

It is also about spotting the turnaround and the acceleration.

That is exactly what you can see here with LSCC.

Sales went from negative year-over-year quarterly growth…

To positive…

To accelerating.

And as sales improved, earnings started to improve too.

Now the forward estimates are showing a major ramp.

LSCC is not just showing strong relative strength.

It is also showing the type of fundamental acceleration that growth stock traders should be paying attention to.

This is not something I made up.

William O’Neil talked about this.

Mark Minervini and David Ryan have talked about this.

The best growth traders are not only looking for big numbers.

They are looking for whether the numbers are getting better or getting worse.

A stock with decelerating growth can look great on the surface, but the market may already be moving past it.

A stock going from negative growth, to positive growth, to accelerating growth can be the start of a major institutional re-rating.

That is what I like about LSCC here.

• Strong price action.

• Strong relative strength.

• Improving sales.

• Improving earnings.

• Big forward estimates.

That is the kind of combination I want on my radar.