Two Stocks Leading the Market Right Now

Hey, Ross here:

A massive shift is underway in the market right now.

While the mainstream financial media remains obsessed with the “AI trade,” smart money is already moving. The stocks that dominated headlines—your Nvidias, Microsofts, and Amazons—are taking a back seat. They’re underperforming.

Capital is rotating into a new area of leadership. If you’re not paying attention to this shift, you’re missing the easiest gains on the board.

This isn’t about guessing. It’s about tracking the strongest areas in the market and buying the leaders. Right now, I’m stepping in to buy two specific stocks—plus a bonus copper play—to capitalize on this rotation.

Here’s the data driving these decisions and exactly how I’m positioning for the move.

The Divergence: Why Tech is Lagging

The indices tell the whole story.

The NASDAQ has had a nice run, but it’s sitting a couple percent off the highs. Compare that to the Dow Jones Industrial Index. Historically, the Dow has been a bit of a laggard—yet it’s breaking out into new highs right now.

That divergence tells you everything you need to know. Market leadership is changing.

When we track the strongest sectors and subsectors—the groups outperforming everything else—a clear theme emerges. It isn’t software. It isn’t chips.

It’s physical assets.

The money is flowing into:

• Mining and Metals
• Steel
• Rare Earth Minerals
• Gold Miners
• Solar Energy

This lines up perfectly with my leading theme: Metals and energy are the play.

The trick to outperformance is simple. Focus on these leading areas, identify the strongest groups, and stick to the top stocks within them.

Trade #1: The Solar Breakout

The first stock I’m adding is Sunrun (RUN).

This stock sits squarely in the solar energy sector, which is showing significant relative strength.

The Technical Setup

Sunrun has been in a holding pattern—a base—for the last three months. After a strong rally from $6 to $22, it paused.

This is exactly what we want to see. The stock comes in, absorbs supply, tightens up. Every dip gets snatched back up, indicating healthy accumulation.

Zoom out to the weekly chart and the setup becomes even more powerful. Sunrun is forming a Stage 1 formation. After a steep decline in previous years, it finally picked up buyers and started to base out. This long, two-year lower base is the launchpad.

The “Line in the Sand”

The trigger for this trade is clear. There’s a line in the sand across the highs at about $22 a share.

I’m not interested in guessing. I’m only interested if the stock proves it’s ready to move. A clean breakout through $22 could easily send this stock to $30 or $40. Ideally, it could push to $50 or $60 a share—a potential double or triple from here.

Execution Strategy

I’m using a Buy Stop order at $22.

You might ask: “Ross, if you’re willing to buy at $22, why not buy it now at $20 and get a better price?”

Two reasons:

• Confirmation: We don’t know it’s going to break out. I want the market to prove me right before I put capital at risk.
• Efficiency: This stock has done nothing for three months. If it does nothing for three more, I don’t want to own it. Idle money does not do me any good.

If it hits $22, I buy instantly. Once I’m in, I’m risking just 10%. If the breakout fails and falls back to $20, I exit with a small loss.

Trade #2: Buying the Dip in Minerals

The second stock targets the clear leadership in the mining and metals space.

Compass Minerals (CMP) offers a different kind of entry. While Sunrun is a breakout play, CMP is a pullback opportunity.

The Context

Compass Minerals had a huge run from $8 to $22. It consolidated, shallowed out, then had a nice clean breakout at the $22 area. It tacked on about 20% in two or three weeks.

Then the stock got hit by a nasty earnings report. It fell from $26 to $21.

To the untrained eye, that looks like a disaster. To a trader, it looks like an opportunity.

The “Retest” Buy Signal

The selling stalled right at the previous breakout area at $22 and has been holding there for the last three days.

My favorite place to buy is on a breakout through resistance. My second favorite place is on a retest of that breakout level.

The stock is also sitting right on the 50-day simple moving average. This is a clean buy area on a pullback.

Execution Strategy

Since this is a pullback, I’m entering at the market price.

The stop is placed just beneath the recent swing low.

Bonus Trade: The Copper Shortage Play

One of my most bullish trades is in the copper sector.

The macro thesis is undeniable. We have a massive shortage and huge climbing demand. We simply cannot mine enough copper to meet that demand. When supply doesn’t meet demand, price goes up.

Many copper stocks are already extended, but Ero Copper (ERO) is giving us a gift.

The Pattern

ERO showed a beautiful breakout back in late December. It rallied higher, showing institutional activity, then tightened up in a “cup with handle” pattern. It broke out at $27 and accelerated.

Recently, it has pulled back.

The Buy Zone

Ideally, I’d like to buy near the breakout area at $26, but we might not get that lucky. The 50-day moving average is sitting right around $29.

Anywhere in the $26 to $29 area is a great place to buy.

Execution Strategy

I’m placing a Buy Limit order at $29.50. This means I want to buy it at $29.50 or better.

Swing Trading Discipline

These are swing trades. I’m not trying to hold these positions for 9 to 12 months.

My goal is to capture a nice, clean move over two to eight weeks. I’m looking to pick up 20%, 30%, or 40% on the upside.

This strategy is working in real-time:

• Hecla Mining: Bought last week on a similar pullback to the breakout area. It’s bouncing nicely.
• HYMC: Picked up in a live training session on Monday. It’s up 6.8% and climbing.

The rotation into physical assets—metals, mining, and energy—is real. The charts confirm it. The sector data confirms it.

Position yourself accordingly.