While markets have been volatile over the past few weeks, these turbulent periods often present the best opportunities to identify future leaders.
When the market’s under pressure, I’m always looking for the names that refuse to go down.
That’s what relative strength looks like.
It’s called the Beachball Effect.
Picture a beachball underwater — no matter how hard you push it down, it just keeps fighting to pop back up.
And when the pressure lifts, these are the names that tend to rip first — and rip the hardest.
To help visualize this, we built a table combining two factors:
🔹Stocks currently in a bullish momentum regime
🔹Stocks that have bounced the most off their 100-day lows
By combining relative strength and momentum, we’re zeroing in on the best leadership candidates.
And if I had to pick one standout example from this list, it would have to be Netflix $NFLX.
This stock is in almost everyone's portfolio and its relative strength is absolutely off the charts.
Price is breaking out to new all-time highs on both an absolute and relative basis.
Not too many stocks can say that right now.
While most of the other big names are still stuck underwater, Netflix is leading the way.
This is the Beachball Effect in action.
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