The major indices are lying to you.
Pull up the NASDAQ or S&P 500 right now. You’ll see a whole lot of nothing. Both have been stuck in a holding pattern for months—chopping around near the highs with zero real advancement.
But just because the index hasn’t moved doesn’t mean every stock is sitting still.
While the broader market sleeps, two specific sectors are quietly setting up for massive moves. I’ve found stocks that are top performers in leading groups, emerging from clean patterns. We can buy them right now with sub-10% risk and a realistic shot at 30%, 40%, even 50% upside.
This isn’t guessing. It’s following institutional money flow.
The “Stair-Step” Signal
One of the best ways to give yourself an edge is sticking to leading groups.
When multi-billion dollar asset managers and massive hedge funds spot opportunity—whether in AI, nuclear, or commodities—they buy tens of millions of shares. That volume forces those sectors to rise faster than everything else.
Recently, I’ve noticed something interesting. Some of the best opportunities are not leading over the last month—even though they dominate the longer timeframes.
Two groups keep showing up:
- Rare Earth Metals
- Gold Miners
Both are top performers over 2, 3, 6, 9, and 12 months. But neither appears on the one-month list.
That’s actually a good thing.
We want to buy as they emerge from consolidation and start the next advance phase. That’s where we can make a quick 20% to 40% in a couple of weeks.
Trade #1: The Australian Breakout
The first opportunity is LYC, the company is Lynas Rare Earths Limited.
This chart is about as pretty as I’ve seen. The stock had a beautiful move from $8 to $22 at the end of 2025, then pulled back as the rare earth trade cooled. It absorbed that supply, shallowed out, and is now consolidating nicely—tightening up for a move higher.
The Trade Setup
I want to buy this strictly on a breakout. No sitting on dead money if it consolidates for another month.
- Buy Strategy: Place a buy stop order at $16.50
- Stop Loss: Once triggered, place a sell stop at $14.95
- Risk: About 9.5% on this trade
- Reward: If it breaks out and runs historically, expect 20-30%+ upside—about a three times risk
Trade #2: The Gold Miner Pattern
The second stock is Barrick Gold, ticker just the letter B.
Gold is leading the market. This chart shows clean consolidations followed by beautiful 50%+ bursts higher. Right now, it’s showing a nice shallowing consolidation along the 50-day moving average. Ready for a breakout.
The Trade Setup
I’m entering this position immediately.
- Ticker: Just the letter B
- Strategy: Buy at market price
- Stop Loss: $44.95
- Risk: 8.5%
Set your stop order to “Good Till Cancelled.” If you use a day stop and it doesn’t hit today, you have no protection going forward.
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Updates on Active Positions
Several other positions are validating this strategy. Here’s where we stand:
HYMC
Currently up about 17%. We were up 30% going into last week—probably should have taken some off—but the setup still looks good. Nice natural reaction on the 20-day line. Looking for this to get into the highs and show us 40-50% upside.
ERO (Copper)
This copper stock we bought on a pullback to the 50-day moving average at $29.50. Currently up $14.50 per share.
Since we’re up double our initial risk, I’m tightening the stop—moving it just below break-even. If you want to take some profits here, nothing wrong with that. I’m letting it work.
CMP (Compass Minerals)
Currently up 11%. It made a move, had a natural reaction, and is breaking out higher. Should not go back below the recent swing low.
I’m tightening the stop loss to just beneath that swing low. At this point, my worst-case scenario is making 1%. Totally de-risked this trade.
HL (Hecla Mining)
This one hasn’t done much yet, but I still think it’s a good buy here. Had a little breakout recently and pulled back.
I’ve brought the stop up to the swing lows—only about 9% risk. Historically, if this runs and gets back into the highs, you’re looking at 40-50% upside. More than worth the risk.
MRK
Bought this during a live trading session on a short-term breakout move. Hasn’t panned out much yet—down about $20 on the position—but I’m giving it time to work.
Discipline in a Flat Market
The market averages might look boring, but the rotation under the surface is aggressive.
When you identify sectors like Rare Earths and Gold Miners that are outperforming over 3, 6, and 12-month periods, you simply wait for the consolidation.
We aren’t chasing spikes. We’re buying the “stair-step” as it prepares for the next leg up. With stops tighter than 10% and upside potential of 50%, the math is heavily in our favor.
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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.