Following Strength. Staying Disciplined.
Last week’s Top Pick of the Week (TPOW) was KC (Kingsoft Cloud), a high-momentum stock that had been showing strong relative strength and breaking out of the Green Zone early in the week. As always, the trade was initiated at the Monday market open, which on June 9th was at $12.95. The technical setup looked promising at the time, but the stock was unable to sustain its early strength.
By the Friday close on June 13th, KC had retreated to $12.43, and the trade was exited per our weekly rules. That represents a modest weekly loss of 4.0%. While not the outcome we were hoping for, this controlled loss reflects the importance of our disciplined exit strategy. We do not hold past Friday’s close, and we stick to the system no matter what.
These occasional down weeks are a reminder that even strong setups can falter, especially in choppy or indecisive markets. But the real power of the TPOW strategy lies in its repeatable structure — we limit downside, take quick gains when they come, and stay focused on the next high-probability setup.
Market Overview
The broader market showed mixed signals last week. The S&P 500 (SPY) traded in a narrow range, struggling to break meaningfully higher despite several large-cap names holding up well. Friday’s close saw the SPY hovering near recent highs but lacking conviction to push through with strength. It was a week characterized by low volume and cautious buying, with many traders waiting on key economic data and Fed signals.
From a technical perspective, the SPY is still above its Green Line, indicating that the long-term trend remains intact. However, short-term momentum has slowed, and we’re seeing more rotation into defensive names and sectors like Utilities and Consumer Staples.
Staying Focused on the System
Weeks like this reinforce the importance of a rules-based approach. Not every trade will work, but by sticking to high-SCTR stocks breaking out on volume, and by managing trades with discipline, we tilt the odds in our favor over time. The TPOW strategy is built for consistency — not perfection — and our job is to remain focused on the process, not the outcome of any single trade.
We’ll be watching closely over the weekend for the next setup showing strong technical, high relative strength, and volume confirmation. The next TPOW will be announced Sunday evening on the website and via email for premium members.
Reminder: The TPOW strategy is one of several offered inside our premium membership. If you’d like to follow along in real time and receive alerts, visit our membership page to get started.
