Hello all, it’s Barrie Einarson from Trade Ideas. I’m excited to bring you another edition of our series, What Makes This Trade Great, where we delve into interesting and teaching moments from the stock market. This time, we’re looking at the unexpected performance of a lesser-known stock, proving once again that investment gems are not exclusive to the widely popular names.Prior to proceeding, feel free to explore my Home Page, where you can acquire Trade Ideas scanners at a discounted price by using Promo Code BARRIE25. Test Drive Nov6-20: https://go.trade-ideas.com/SHjz

Sell-off Trend in the Market

Let’s start with some context. In the current stock market scenario, we’re seeing serious selling pressure across the board. This is best illustrated by the S&P 500 ETF Trust (SPY).

The very visible decline exemplifies the market’s predominant selling mood. However, amidst this broad sell-off, investors might be surprised to find some stocks pulling off unprecedented runs. This is where NRDs, a relatively unknown entity referred to as Nerd Wallet, enters our narrative.

The Spectacular Run of the NRDs

While tide and trend have largely been against market bulls, the NRDs stock has managed to defy the odds in a strikingly impressive fashion. After starting the trading day at an unassuming $7.57, the stock climbed its way up, hitting nearly $10 – a substantial jump considering the market condition.

I affectionately term such instances as ‘under the radar earnings plays,’ as they could potentially slip past even the most discerning investors’ watch. Today, our ‘under the radar’ star, NRDs, shone brightly amidst a gloomy stock market atmosphere.

Scanners Highlighting the Alpha Stock

Playing off the age-old adage of ‘actions speaking louder than words,’ the standout performance of NRDs was reflected clearly in our stock scanners.

The NRDs emerged in the ‘ten-day daily breakout’ at 8.97, followed closely by a prominent position in my ‘option scanner’ at 9.15. Such an occurrence is rare and must not be overlooked, hence my advice:

Without a doubt, the NRDs embodied the definition of an ‘Alpha Stock’: Flying high irrespective of the market’s down swing and manifesting strong independent momentum until giving up the rally as the day wore on.

It’s important to note that the quality of an alpha stock doesn’t solely reside in the duration of its run, but also its ability to rise defiantly during periods of market distress. That’s where the beauty of trading such a stock lies.

Closing Thoughts

The unpredictability and the rapid pace of the stock market often bring to light intriguing trading sessions like the one we’ve discussed here.

The key takeaway here is the importance of keen observation, the ability to spot unlikely winners and high performers in a volatile and uncertain marketplace. So here’s to more such thrilling rides and a wealth of trading learning from them.

That’s it from me today, folks. Let’s see how Monday’s market unfolds, and until then, have a great weekend. See you then, bye!