I never quite understood the aphorism, “the most contrarian thing of all is not to oppose the crowd but to think for yourself.” I thought I understood the gist, but it wasn’t until AMC Entertainment (AMC) stock soared during the meme-stock mania of early 2021 that I truly knew what it meant.

Check out the chart below. You’ll see that AMC’s shares skyrocketed seemingly overnight.

Thousands of traders rushed into the stock on the back of GameStop’s (GME) surge, but the AMC trade quickly fizzled out.

Was the crowd wrong? No. They were just too early.

On Feb. 18, 2021, AMC’s chart would light up with what I call the “breakout trigger.” You may know it as a golden cross – it’s when a stock’s short-term moving average (MA) crosses above its long-term MA.

In AMC’s case, its stock would go on to soar 1,000% over the next four months. That means you didn’t have to pile into the stock when everyone else did… you just had to wait for the technicals to give the “all clear” for major upside.

You may think this was a fluke because of meme-stock mania, but all stocks eventually signal a golden cross. It doesn’t matter how big or small they are. Learning how to spot it can help you to make savvy investment decisions for yourself on every single trade.

The Breakout Trigger

A golden cross is a bullish sign that short-term price momentum is meaningfully improving relative to the long-term price trend. In fact, many investors believe the golden cross signal is the most powerful technical indicator in the market.

In any event…

In early January 2023, the S&P 500 triggered a golden cross signal when its 50-day moving average flipped above its 200-day moving average. This marked the first time in this bear market cycle that the S&P triggered this particular golden cross signal.

That’s very bullish.

Over the past 15 years, whenever the S&P triggered this signal for the first time in a market selloff, the selloff abruptly ended. And stocks proceeded to soar! Sure enough, despite some setbacks related to the Silicon Valley Bank meltdown, the S&P is up 7.5% year-to-date.

The last time this golden cross signal flashed was in summer 2020 – just as stocks were starting to soar out of the COVID-19 lockdowns.

Before that, it flashed in early 2019, when the market was making a huge comeback from a nasty late 2018 plunge.

Lather, rinse, and repeat all the way back to the 2008 financial crisis. Every stock market selloff since the Great Recession – including the nasty 2008/09 bear market – ended when the 50-day moving average flipped above the 200-day.

After crashing last year, the stock market is off to a red-hot start in 2023. That’s thanks to a combination of falling inflation, stabilizing economic activity, and signals that the Fed will soon slow its rate-hiking campaign.

And that means a number of stocks will proceed to soar over the coming weeks and months. My team and I are watching three in particular that have shown indications of breaking out.

Read on for more.

Stock #1: Nordic American Tankers Limited (NAT)

Nordic (NAT) has been performing well over the past year, highlighted by some favorable technical indicators that reflect its strong fundamentals and market position.

NAT stock’s moving average convergence divergence (MACD) – a measurement of the momentum and trend direction of a stock – has been above the signal line and the zero line for most of 2023, indicating a bullish trend and positive momentum. The MACD also shows a recent crossover, where the MACD line crossed above the signal line, which is a strong buy signal.

Another technical indicator that has been boosting NAT’s stock price is the relative strength index (RSI), which measures the overbought or oversold condition of a stock. The RSI of NAT has been hovering around 50 for most of 2023, indicating a balanced market condition and stable supply and demand for shares. The RSI also shows a recent uptick, moving above 50 – a sign of increasing buying pressure and strength.

Bottom line: Whether or not Nordic’s upcoming earnings report can provide a further catalyst for its stock price remains to be seen. But with a regular dividend yield above 6%, NAT stock makes for a stable income-paying investment with solid underlying technicals. Will it go up in April? Our quant model can tell us the answer…

Stock #2: Hims & Hers Health, Inc. (HIMS)

After a bullish run to start the year, Hims & Hers (HIMS) stock was dinged in the broad market selloff in early March and has been on a downtrend ever since.

What we’re seeing now is standard pullback/consolidation behavior. HIMS has simply become overextended, both in terms of its RSI chart and pushing the resistance line of its breakout channel.

Don’t let that fool you; HIMS stock had an explosive start to the year, and that sort of strength eventually gives way to a breather, which is what we’re seeing now.

What’s more, its breakout channel remains very strong despite the recent price action. And its moving averages are all sloping beautifully higher while the RSI is normalizing.

In fact, with the RSI now approaching oversold levels, we could see a turn and a new bullish push higher.

Bottom line: While HIMS has given back some profits, it remains in a very strong breakout channel. Will the stock power higher in April? It’s likely…

Stock #3: Qualtrics International Inc. (XM)

Qualtrics International (XM), a leading provider of software solutions for customer and employee experience management, took off like a rocket in March after a comparatively tame start to the year. The stock’s outsized performance has been driven by strong revenue growth, expanding margins, and positive earnings.

XM’s stock is currently trading above its 50-day and 200-day MAs, indicating a bullish trend. Currently, XM’s stock has an RSI of 58.6, suggesting that it is neither overbought nor oversold and has room for further upside.

Bottom line: XM has been showing strong technical indicators that support its bullish trend and growth potential. The stock is trading above its moving averages, has a moderate RSI, and has a low beta. These factors suggest that XM’s stock could continue to outperform the market and deliver value to its shareholders.

The Final Word

To help you take full advantage of this coming stock market boom, my team and I have designed a proprietary quantitative model to find the fastest-moving, most explosive stocks in the market.

It’s built on the back of a time-tested and proven professional trading strategy that may be Wall Street’s best-kept secret. But more importantly, it works.

We beta-launched our quant model in the middle of 2022 – or, in other words, in the middle of a nasty bear market.

And it didn’t even flinch. Since its launch, this quant model has discovered multiple stocks that have risen sharply in price, including one that popped as much as 88% in less than three months!

Trust me. This is the ultimate trading tool. And we plan to use it, over and over again, to find some huge winners in the coming stock market boom of 2023. One of those winners is right here, in the aforementioned stocks. And we’ll tell you which one on April 5, at 4 p.m. Eastern.

If you’re interested in getting alerted when our research goes live, you can sign up for our VIP service here.