Choosing Winners: Stocks with Strong Relative Strength

The article discusses key considerations for investors in the current stock market environment and highlights four stocks to watch:

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Market Trends (the "M" in CAN SLIM): The article emphasis the importance of considering overall market conditions before making investment decisions. It advises investors to enter the market during a confirmed uptrend and move to cash during a market correction.

Current Market Situation: The article notes that the stock market is currently in a correction, with both the Nasdaq and S&P 500 trading below the 50-day moving average. It suggests that investors should refrain from buying stocks at this time, sell underperforming stocks, and prioritise raising cash.

Building a Watchlist: Despite the market correction, the article encourages investors to create a robust watchlist of exceptional stocks, including those listed in the IBD 50. These stocks are near buy points and could become potential candidates for investment.

Stocks to watch: The article highlights four stocks with strong relative strength and growth potential:

GE (General Electric): GE stock is in a strong position, with a recent flat base formation. It's noted for its solid price performance over the past year, despite lower EPS ratings.
SLB (Schlumberger): SLB stock is trading above a cup-with-handle base buy point, with a strong composite rating and impressive earnings performance.
Meta Platforms (formerly Facebook): Meta stock is in a cup-with-handle base with a buy point, and it has shown strength in price performance and improved earnings.
Uber: Uber stock is in a flat base formation with a buy point, demonstrating resilience in its ride-sharing and delivery businesses. It recently turned profitable and continues to grow.
Marsh & McLennan: MMC stock is near a flat base buy point, with a strong composite rating and recent acquisitions contributing to its growth.

The article underscores the need for investors to monitor market trends, exercise caution, and stay informed about potential risks, such as inflation and geopolitical conflicts, that could impact the market. It also provides key details about each of the highlighted stocks' performance and growth prospects.