The market is handing you a stock buying opportunity right now, and most people are too scared to take it.
While overall market weakness drags the indexes lower, individual names are showing signs of heavy accumulation. You just have to know where to look. I'm taking positions in two new stocks today: ServiceNow (ticker: NW) and Borr Drilling (ticker: BOR).
Two different setups, but both offer real upside. I'm putting my money where my mouth is and buying them right alongside you.
Why Does This Stock Buying Opportunity Matter Right Now?
Bottom Line: The core thesis is that broad market weakness is masking real strength in select individual stocks, specifically in energy breakouts and beaten-down software names showing institutional buying. ServiceNow represents a recovery bet against overcorrected AI fear, while Borr Drilling is a momentum trade in a sector with genuine tailwinds. The edge here is ignoring index noise and focusing on volume-confirmed accumulation in leading stocks.
The indexes are down. Most traders see red and panic.
I see a chance to buy in.
When the broader market pulls back, it creates openings in leading groups. The energy sector is booming. Specific software names are showing signs of recovery. Strong stocks with perfect breakout setups are right there if you know where to look.
Why Did Software Stocks Get Crushed?
Software stocks have been selling off heavily across the board. The driver behind it is agentic AI. People are panicking, asking what traditional software can do compared to what agents can do. The consensus became that software stocks are cooked, and they sold them all off.
ServiceNow got caught up in this massive sell-off. I don't believe it should have. That panic has created a massive turnaround opportunity, and a real stock buying opportunity for those paying attention.
ServiceNow: Turnaround Setup
ServiceNow is surging. The stock had a brutal prior six months, but it's up around 27% in just the last four trading days.
This was an absolute monster during the AI run in 2023 and 2024. The stock went from $73 to $240 a share. Then it got bassy and was absolutely murdered.
Now we're seeing a major recovery off the lows, and the momentum is real.
The Four-Stage Stock Cycle
ServiceNow perfectly illustrates this pattern over the last few years.
If you understand the four stages of the stock cycle, the ServiceNow chart reads like a textbook.
Stage 1, the accumulation phase: The stock based out and built a foundation. Stage 2, the markup run: That massive climb to $240. Stage 3, the top and distribution: Institutions started dumping in early 2025. Stage 4, the capitulation: The big decline came on the tail of the broader software sell-off.
Following that capitulation, ServiceNow formed a very short Stage 1 base. It spent only about a month down in the $90 to $100 area. Now it's ripping back.
The Volume Signal
You look for massive volume signals when a stock is coming out of the lows. ServiceNow just printed the highest volume up day in a year. That's a really big buy signal.
This isn't a perfect breakout setup. It's a recovery off the lows with a ton of momentum behind it.
The CEO of Nvidia is out there preaching this stock. There have been articles written about ServiceNow being a potential 10x move from here. I believe the stock is undervalued and has huge upside potential.
I bought a couple hundred shares. My goal is to add more as the stock pulls back or forms new bases and consolidations.
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Join my Black Ops Trading ClubBorr Drilling: A Textbook Stock Buying Opportunity
My second pick is a more traditional setup.
Borr Drilling (BOR) is a drilling company in the booming energy sector. This is an absolutely textbook breakout pattern.
The stock had a beautiful uptrend, moving from $2.50 to $6.00. That's a triple in just a couple of months. Following that run, it put in a textbook shallowing base formation over the last three months.
It broke out yesterday on above-average volume, the highest volume day in two weeks. Today it's pulling back slightly on overall market weakness. That's your chance to enter.
The BOR Trade Setup
Entry Point
The perfect buy point was $6.30. It's currently trading at $6.50. Don't fight over a dime here and there. I have a long position from current levels.
Risk Parameters
My stop loss sits at $5.70, just beneath the recent swing low. If you want to go really tight, you could try $6.00.
Target
I'm risking about 12% on this trade. You risk 8%, 10%, or 12% to try to capture a 20%, 30%, or 40% breakout move to the upside.
Two Paths to Profit
The market is offering two distinct opportunities right now, and each one represents a compelling stock buying opportunity.
ServiceNow is a longer-term position stock showing signs of big accumulation off the lows, a beaten-down software name with real recovery momentum. Borr Drilling is a traditional swing trade breakout in a booming sector with a textbook setup.
Don't let index weakness scare you out of strong individual setups. Follow the volume, manage your risk, and buy the stocks showing true accumulation.
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Key Takeaways
- ServiceNow (ticker: NW) is being bought as a longer-term position play, not a swing trade, based on signs of institutional accumulation off heavily oversold lows driven by agentic AI panic selling.
- Borr Drilling (ticker: BOR) is a classic swing trade breakout setup in the energy sector, which is identified as one of the strongest performing groups in the current market environment.
- The sell-off in software stocks is attributed to fear that agentic AI makes traditional software obsolete, a narrative that created an overcorrection and a potential entry point in names like ServiceNow.
- The strategy separates index-level weakness from individual stock behavior, using volume and accumulation signals to identify stocks being bought by institutions while the broader market sells off.
- Two distinct trade structures are in play simultaneously: a recovery momentum trade in software and a textbook breakout trade in energy, reflecting different risk profiles and holding periods.
DISCLAIMER: Traders Agency does not offer financial advice. The information provided is for educational purposes only and should not be considered financial advice. Traders Agency is not responsible for any financial losses or consequences resulting from the use of the information provided. Trading carries inherent risks and may not be suitable for all individuals. You are advised to conduct your own research and seek personalized advice before making any investment decisions, recognizing the potential risks and rewards involved.
