The major indexes held their ground last week. As of Friday morning, the S&P and Nasdaq were both trading near the same level they closed the week before.
Markets avoided any major selling days, and volume is picking up slightly as we approach the end of summer, which has historically seen lighter action.
Stocks posted net new highs each day, and the percentage of names above their 50- and 200-day moving averages continues to rise.
The solar energy and biotech sectors are currently leading as the top performers.
Solar, in particular, made a big move over the last few weeks… Enphase Energy, Inc. (ENPH) is now up 37% from the $220 pivot point I identified on July 25
But with solar getting a bit extended, I will be focusing on the biotech sector this week.
Here are the three new trade ideas in this space that have big potential…
Krystal Biotech, Inc. (Long Idea)
Again, biotech stocks are showing a lot of strength right now.
Last week, I introduced you to Ionis Pharmaceuticals, Inc. (IONS), which broke out and climbed 16% in just two days.
Krystal Biotech, Inc. (KRYS) is another biotech stock setting up in a similar pattern.
KRYS has formed a base over the last eight months and is finally starting to break out into new highs on above-average volume.
With resistance broken and almost no overhead supply, this could be the beginning of a strong rally higher.
Intra-Cellular Therapies, Inc. (Long Idea)
Intra-Cellular Therapies, Inc. (ITCI) is another biotech stock I have been watching for several months.
Many of the companies in this space are pre-revenue. But ITCI is growing sales at triple-digit rates every quarter.
Fund ownership is also ramping up. This is a good sign, as it shows institutional interest (big players) building positions in the stock.
Xenon Pharmaceuticals Inc. (Long Idea)
I have brought your attention to Xenon Pharmaceuticals Inc. (XENE) over the last few months and added it to the Watchlists of several of my research services.
As you can see in the chart, price has been consolidating for almost a year to form a beautiful base, with pullbacks shallowing from left to right.
Last week, shares finally breached the $36 level, triggering a nice breakout.
If the breakout holds above the pivot, we could see a lasting move higher.
Fly Under the Radar
Institutional investors like pension funds, mutual funds, hedge funds and other large players make massive institutional buys that fly under the radar of most individual investors.
But if you know how to spot those buys in real time, you can potentially follow the big money to big gains.
This is what I focus on inside my premium Stealth Trades research service.
Look, if you haven’t been making money in these markets, it’s time to try something new…
Embrace the surge,
Editor, Stock Surge Daily