How To Find Winning Stocks Such As Nuclear Power Leader BWX Technologies With The Blue Dot

Finding winning stocks to buy can be a dilemma but this simple screen identifies market leaders that are setting up in bases or hitting buy points. The Relative Strength Blue Dot list quickly identifies stocks outperforming the S&P 500 index.

The screen is found in the bottom left panel under the Reports section inside MarketSurge. Find it within the Technical folder for stocks.

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An Easy Way To Find Winning Stocks

The blue relative strength line compares a stock’s price performance to that of the S&P 500 Index on daily and weekly charts.

A rising RS line means the stock is outperforming the S&P 500, while a declining line means it is lagging.

The black S&P 500 price performance line is shown above the chart for easy comparison. This add-on is found under the tools icon in MarketSurge. Meanwhile, the blue dot appears when an RS line reaches a 52-week high and the stock is building a fresh base or breaking out past a buy point.

It may appear on the weekly MarketSurge chart and not the daily, and vice versa.

Uber Races Past The S&P 500

Back in the first week of May 2023, Uber Technologies (UBER) broke out and posted a strong weekly gain, triggering the blue dot on its weekly chart. The S&P line dipped down for the week, while UBER’s RS line spiked dramatically.

Shares fell 0.9% on May 4, reversing the daily RS line’s uptrend, therefore it didn’t qualify for a daily blue dot. But afterward the gains continued.

The weekly gain has added to the right side of a cup base. The stock broke out and hit the 37.58 buy point, another factor in triggering the weekly blue dot. By year’s end, Uber shares gained more than 68% from the entry, overpowering the S&P 500’s 17% gain over the same time period.

Winning Stocks At Or Near Buy Points

On March 25, BWX Technologies (BWXT) rallied more than 8% and broke out of a nearly three-month base that showed a 220.57 buy point. The stock marked a new high of 222.29 and its relative strength line stretched into new high ground. Thus, it made the MarketSurge RS blue dot screen.

BWX, a key supplier of nuclear fuel, systems and equipment to customers in the fields of nuclear medicine, submarines and electric utilities,  has achieved steady double-digit earnings and sales growth in each of the past four quarters.

A version of this story published back in May 2023. Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.

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