gapped<\/a> sharply higher on the open and subscribers sold into strength for a quick 10% gain on a two-day hold:<\/p>\n![\"$XCRA](\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170411XCRA.png\" "\\"\\"")
<\/p>\n
Admittedly, the massive gap up on April 10 was just lucky.<\/p>\n
However, when a stock exhibits relative strength to the broad market, it only takes a little bit of good news to generate an overly positive price reaction.<\/p>\n
That’s why, after nearly two decades of trading stocks, we have learned that “luck” happens a lot more when you’re already trading stocks with relative strength<\/strong> to the market.<\/p>\nBy the way, did you notice that the relative strength in $XCRA is not as obvious as the first two examples?<\/p>\n
Both $MOMO and $INVA were setting higher lows while the S&P 500 was setting lower lows.<\/p>\n
But with $XCRA, the stock merely held support of its prior lows and traded in a sideways range.<\/p>\n
This is generally not as bullish as a stock that’s setting higher lows instead, but it still indicates relative strength.<\/p>\n
<\/span>4. Clean Energy ETF ($PBW)<\/strong><\/span><\/h3>\nThe last example of relative strength is PowerShares Clean Energy ETF ($PBW), a green ETF that tracks a group of stocks in the clean energy sector.<\/p>\n
While the first three examples all showed early relative strength versus the S&P 500, $PBW generally traded in sync with the S&P 500 during the first month of the market pullback.<\/p>\n
However, $PBW began showing relative strength about one week ago, which was confirmed by its April 10 base breakout to a new high:<\/p>\n
![\"$PBW](\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170411PBW.png\" "\\"\\"")
<\/p>\n
<\/span>Time For Action<\/span><\/h2>\nNobody knows how long the stock market will continue to oscillate in a range before establishing a new, short-term trend.<\/p>\n
If your usual bullish trade setups are not working in this environment, don’t fight it!<\/p>\n
Now that you know how to find stocks with relative strength, use that powerful tool in your trading arsenal instead.<\/p>\n
Don’t overcomplicate it either.<\/p>\n
In choppy markets, just stick to trading stocks that hold up best<\/strong> while the market moves sideways to lower.<\/p>\nIf you don’t have the time or desire to scan for stocks with the most relative strength now, we’ve still got you covered.<\/p>\n
Sign up now<\/strong><\/a> for your subscription to The Wagner Daily<\/em> and receive the best stock trade setups with relative strength daily.<\/p>\nBy the way, remember to use promo code “ny49” to receive our 15-year anniversary pricing (just $49\/month or $299\/year).<\/p>\n
![\"choppy](\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/04\/choppy-market.jpg\" "\\"\\"")
In a raging bull market, you can do pretty well by simply buying nearly any stock that breaks out to new highs on strong volume.<\/p>\n