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CTAS Fires Daily Squeeze While Market Tanks

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Trade of the Day Wake-Up Watchlist

"When everything else is getting sold, but your stock holds firm, it means there's serious underlying demand."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Hey gang,

What a mess Friday turned into.

Israel hits Iran with airstrikes, oil jumps, and the market decides to have a nice little selloff to close out the week. Just like I said earlier - short-dated options in this environment? Bad idea.

But while everyone's glued to the news wondering what happens next, I'm doing what I always do during market chaos...

Looking for the stocks that don't care about the drama.

And CTAS? This thing just fired a fresh daily squeeze while trading near its 52-week highs.

Let me break down exactly why this chart has me so interested - and why these technical signals could translate into serious profits...

The Squeeze That Could Pay Your Rent

 

Alright, let me explain what a daily squeeze really means for traders like us.

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When you see a squeeze fire, you're looking at compressed volatility that's about to expand. Think of it like this - when a stock has been trading in a tight range for weeks, all that pent-up energy has to go somewhere.

Here's why that matters: A squeeze tells you that big moves are coming, but it doesn't tell you which direction. That's where the other pieces come in...

When you've got a squeeze firing on a stock that's up 22% year-to-date and trading near its 52-week highs, the probability strongly favors an upside breakout. You're essentially getting advance warning that volatility is about to explode to the upside.

Why These Stacked EMAs Are Like Money in the Bank

Let me walk you through why those stacked EMAs are so important...

When you see the 8 EMA above the 21, above the 34, above the 55 - all in perfect order - you're looking at what I call a trend ladder.

Each EMA acts as a support level on any pullback. So if CTAS dips today or tomorrow, I know exactly where the smart money will likely step in - right at those moving average levels.

But here's something else - when EMAs are stacked like this on both daily and weekly timeframes, you're looking at a trend that has serious institutional backing. Big money doesn't create these kinds of patterns by accident.

The stacked EMAs tell you this isn't some random pump - it's a methodical, well-supported uptrend with multiple layers of buying interest underneath.

Friday's Action Told Me Everything I Needed to Know

Now let's talk about why Friday's action was so telling...

While the market was selling off on geopolitical fears, CTAS barely budged. That relative strength during weakness is like a crystal ball for what's coming next.

Here's what that tells you: When everything else is getting sold, but your stock holds firm, it means there's serious underlying demand. Smart money is absorbing any selling pressure.

The relative strength in CTAS right now is telling you that when market sentiment improves - and it will - this stock is going to be one of the first to benefit. And it's going to benefit big.

Your Action Plan

Look, after Friday's mess and with OPEX this week, I'm being extra selective about what deserves my attention.

But CTAS is the kind of setup I love in volatile markets - clear signals, defined risk, strong relative strength.

But here's the thing - while I'm watching CTAS develop, I'm also hunting for my favorite volatile market play: Opening Bell Aftershocks.

These momentum earnings winners are perfect when everything else is messy. Just like Oracle last week - clean, fast profits while the rest of the market is confused.

If you want to see how I spot these catalyst trades in real-time, click here to learn more.

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