Trading the Upward Trend
Stockscores Foundation for the week ending April 27, 2026
In this week's issue:
In This Week’s Issue:
- Mentorship Spring 2026
- Market Outlook – A Coiled Spring
- This Week’s Market Minutes video – This is How I Create Winning Stock Market Strategies
- Trader Training – Trading the Upward Trend
- Strategy – Alpha Gainers
Mentorship Spring 2026
Starts Tuesday May 5
2 spots left
$2000 upgrade from the Active Trader membership ($1000 to repeat)
https://www.stockscores.com/trader-training/upcoming-events/
Market Outlook – A Coiled Spring
Price volatility in the stock market has compressed lately and trading volumes are light. It seems investors are not willing to act, either as buyers or sellers, and are waiting for the next big headline to drive the next leg of the trend. The momentum is up but the strength is fragile; one negative headline could cause a quick downward move. For traders, this is good. For investors it is fear inducing which is why volume is light. Of course, a positive headline could have a positive effect and send stocks quickly higher too.
This Week’s Market Minutes Video – This is How I Create Winning Stock Market Strategies
To create a winning stock market trading strategy, I start with past winners and work backwards. This week, I show you the process to build a winning stock investing strategy. Then, my analysis of the stock, bond, commodity and currency markets and finally, the trade of the week on ATOM.
Click Here to Watch On YouTube
https://youtu.be/BsD-wvby5gc
Commentary – Trading the Upward Trend
When we buy a stock, we think the whole world must see the good things that we see. The truth is, for every stock we buy there is someone on the other side of the trade who disagrees with us. We should be humbled by the fact that for every trade, someone is going to be wrong.
You may buy a stock because you have learned something about the company that you think makes that company undervalued. The person selling to you may not know this new information and therefore does not believe that the stock is undervalued. They may know information that you do not know which makes them believe that the stock is actually overvalued.
These are called information asymmetries and they are the reason that trades in the stock market can happen. The buyer thinks the stock is undervalued and the seller thinks the stock is overvalued.
They are also the reason that companies with improving fundamentals do not go up steadily over time. Instead, most strong stocks will go up, then pull back, then go up, then pull back; they trade in this cycle which forms an upward trend line.
Emotion is a big factor in this trending trading pattern. When stocks go up quickly, investors are motivated by their fear of missing out and will chase the stock higher with their buying. This pushes the stock up too far, too fast and causes sellers to take profits and push the stock back down to rational level. The cycle of fear and greed brings a good deal of price volatility within an upward trend.
It is important to understand that information asymmetries and emotional decision making are at work in the market every day and on every stock because it can help us to know when to buy and sell strong trending stocks.
We should not chase a strong stock higher as it runs up and away from its trend line because it is likely going to pull back soon when the emotion wears off. Instead, we should buy on pull backs to the upward trend line because that is often when they make a bounce.
We should not sell just because there is some minor weakness that is merely a pull back in the longer term upward trend. Until the longer term upward trend line is broken, we should stick with the trade and be patient with the winner.
The only time to sell strength is when it is so strong that it makes the stock run in a parabolic trend up and away from the upward trend line. That is taking advantage of greed.
You can trade many ways around these driving forces of investor decision making but it requires thinking in ways that are not typical for an emotional human. Sell strength, buy weakness and understand that not everyone is making decisions with the same information.
Back To Top
Here are two stocks that have shown signs of Alpha and have decent chart patterns.
1. HPPHPP breaks up from a short rising bottom after recently breaking its downward trend line, support at $8.
Back To Top
2. CRMLCRML breaks a downward trend line with strong volume and seems to be building upward momentum. Support at $10.
Back To Top
