I’m buying two new stocks today.
If you’ve been watching the markets, you know there’s a lot of noise out there. But strip away the headlines and look at where money is actually flowing—the picture becomes crystal clear.
Most investors make the mistake of trying to guess what happens next. They predict the Fed, the election, the next earnings report. I don’t play that game. I look for footprints.
When multi-billion dollar hedge funds, pension funds, and endowments move into a sector, they leave massive footprints. They can’t hide their volume. And when they buy, they buy in such size that those sectors outperform everything else for months.
Right now, those footprints are leading to a very specific theme. Not tech. Not consumer discretionary.
What comes next isn’t speculation—it’s a hard asset supercycle.
I’m adding Hecla Mining (HL) and Costamare (CMRE) to my portfolio today. But before I give you the trade details, you need to understand the “Universal Rule” that dictates exactly when to pull the trigger.
The “Stocked Pond” Theory
The simplest way to find winning stocks? Focus exclusively on leading groups.
Think of it like fishing. You can sit in the middle of the ocean hoping a fish swims by, or you can go to a stocked pond where the fish are concentrated. In the stock market, leading sectors are your stocked pond.
When big Wall Street shops accumulate positions, they create momentum that lifts the entire group. Identify which sectors continuously outperform over one, two, three, and six-month periods—you eliminate half the risk immediately.
The Data Doesn’t Lie
Look at the sector performance heatmaps right now. The data is undeniable. Over the last few months, we’ve seen massive rotation.
Groups like Nuclear & Uranium and Space are dominating the leaderboard over 3-month and 6-month timeframes. These aren’t random blips. These are sustained trends driven by institutional capital.
You want to be where the money is already going—not where you hope it will go eventually.
The Theme: Hard Assets
Every bull market has a theme. Late 90s—the internet. 2010s—software.
Right now, it’s Hard Assets.
We’re seeing massive rotation into tangible value. Primarily Metals and Energy.
When I scan the market leaders, this theme’s dominance is overwhelming. The top performing subsectors? A sea of green for commodities.
Out of 40 subsectors I track, the top rankings are populated almost entirely by Gold Miners, Mining & Metals, Rare Earth Metals, and Steel.
This isn’t coincidence. It’s a concerted move by smart money to hedge against inflation and uncertainty by owning real things.
On the energy side, we’ve seen incredible strength in Nuclear and Uranium. Lithium and Solar ran hard a few months back and continue holding their pace.
I never chase extended stocks.
Buying a stock that’s already gone vertical is a recipe for buying the top. It forces you to take on more risk than necessary. Instead, I’m looking for leaders giving us a low-risk entry point right now.
Stock #1: Hecla Mining (HL)
The first stock I’m buying is Hecla Mining (Ticker: HL).
This stock has been an absolute monster. Over six months, we watched it soar from $5.00 to $35.00. That’s the kind of power you get when you’re in a leading group.
Recently we saw a nasty pullback. When you get a broad selloff in underlying commodities—like last week’s hit to silver and gold—the miners pull back.
But for us, this isn’t a reason to panic. It’s a reason to pounce.
The “Universal Rule” of Breakouts
There’s a rule I’ve used for breakout investing that has served me well for 20 years.
When a stock breaks out, rises significantly, then compresses or pulls back—you need to know where the “buy zone” is.
Put this in your quiver of tricks. When a strong stock pulls back for the first time to that 50-day line, the odds are vastly stacked in your favor. Institutions use the 50-day moving average as a benchmark. They defend it.
Look at the daily chart for Hecla. The stock had a massive run-up, pulled back sharply during the metals selloff, and is now sitting right on top of that 50-day SMA. It’s also retesting a support/resistance area from December and January.
Textbook.
The Fundamental Case
Technically, the setup is perfect. Fundamentally, this is a powerhouse.
- Relative Strength Rating: 99 out of 100—outperforming 99% of all stocks
- Big Earnings: Profitable and growing
- Big Sales: Revenue expanding
It’s a leading stock in a leading group (Gold/Silver Miners). I don’t need a whole lot of excuses to buy this one.
Executing the Hecla Trade
I’m taking a position in HL right here.
The bid-ask spread is super tight—trading around $22.38 by $22.42. Because it’s so liquid, I’m comfortable taking this at market price.
Risk Management
I never enter a trade without knowing exactly where I’m getting out if I’m wrong.
For Hecla, I’m risking 10%. My stop loss goes at $20.10—about 10% below current price. This gives the stock room to breathe and fluctuate without shaking me out prematurely, but protects me from catastrophic collapse.
I’d rather take a 10% loss than a 40% or 50% loss.
That’s the difference between a trader who survives and one who blows up their account. Set the stop, make it “Good Till Cancelled,” and let the market do the rest.
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Stock #2: Costamare (CMRE)
The second stock I’m buying is in a sector just waking up: Shipping.
Look at the one-month performance data. The Shipping group came out of nowhere—posting a 14.79% gain in the last month alone, shooting up the leaderboard.
Typically, I like to see a sector lead for a couple months—one, two, or three months of sustained outperformance—before diving in heavily. I want that trend established.
But when I see a move this violent and sudden in a hard-asset adjacent sector (moving physical goods), I’m willing to take an early stab.
The company is Costamare Inc. (Ticker: CMRE).
The Breakout Pattern
We aren’t looking at a perfect breakout here, but it’s very clean. The daily chart shows the main characteristics I look for in a winner:
- Strong Rise: The stock moved about 50% in a single month—institutional demand
- Shallow Consolidation: After that rise, it didn’t crash. It drifted sideways. Tightened up.
- The Breakout: Broke out Monday with a 3% move, closing near highs on decent volume
Today we’re seeing a tiny pullback—maybe 10 or 20 cents. Nothing to worry about. In fact, it’s an opportunity to get in near the breakout point.
Executing the Costamare Trade
I’m buying CMRE today, but I’ll be slightly more tactical with my entry because of the spread.
Unlike Hecla, Costamare’s spread is a bit wider—about 10 cents between bid and ask. No sense taking a 10-cent hit right out of the gate if we don’t have to.
I’m placing a Limit Order at $17.08. Splitting the middle.
Setting the Stop Loss
For this trade, I’m not taking a ton of risk. Keeping it tighter.
My stop loss goes just below the 50-day moving average at $15.70.
If it drops for three straight days with maximum volatility, I’m wrong and I want out.
One critical detail: this order must be Good Till Cancelled. If you leave it as a “Day Order” and it doesn’t hit today, the order disappears tomorrow morning. You wake up, the stock gaps down, and you have zero protection. Always check that setting.
Why Hard Assets Now
You might be wondering why I’m so heavy on miners and shipping right now.
It comes down to the cycle. We’re in an environment where inflation is sticky, geopolitical tension is high, and government debt load is skyrocketing. Paper assets like bonds become less attractive. Hard assets become the safety trade.
When you buy Hecla, you aren’t just buying a stock—you’re buying silver and gold reserves. When you buy Costamare, you’re buying steel ships and the capacity to move real goods.
These are tangible.
The market is telling us capital is rotating out of speculative tech and into tangible value plays. The heatmap shows it. The relative strength ratings show it.
This isn’t a hunch. It’s pattern recognition.
Volatility is the Price of Admission
Both trades—Hecla and Costamare—come with volatility. That’s the nature of the beast.
When you’re trading commodities or shipping, you’ll get days where the stock rips 5% higher and days where it drops 3%. That’s why we use technical stops rather than emotional ones.
Chaotic markets don’t punish discipline. They punish leverage, impatience, and overconfidence. By sizing these positions correctly (I’m just taking a few hundred shares of each to start) and setting hard stops, we let volatility work for us—not against us.
Don’t Fight the Flow
The biggest lesson from today isn’t necessarily about Hecla or Costamare specifically—it’s about the process used to find them.
We didn’t pick these stocks because we liked the CEO or saw a news headline. We picked them because:
- Sector Analysis showed money flowing into Metals and Shipping
- Relative Strength showed these specific stocks outperforming their peers
- Technical Analysis gave us low-risk entry points (50-day SMA for HL, breakout for CMRE)
This is a repeatable formula.
You can spend your life trying to outsmart the market, or you can simply look at the cheat sheet the market provides every single day. The institutions are showing you where they’re putting their money.
Right now, they’re buying hard assets. They’re buying the dip in miners. They’re buying the breakout in shipping.
I’m positioned. Are you?
DISCLAIMER: Traders Agency does not offer financial advice. The information provided is for educational purposes only and should not be considered financial advice. Traders Agency is not responsible for any financial losses or consequences resulting from the use of the information provided. Trading carries inherent risks and may not be suitable for all individuals. You are advised to conduct your own research and seek personalized advice before making any investment decisions, recognizing the potential risks and rewards involved.
If you want a deeper analysis on where capital is rotating next — and how to position before the crowd — become a member of my Black Ops Trading Club. I provide updates like these every Monday and Thursday in my live classes.
