With the markets in turmoil and uncertainty dominating headlines, traders face a critical question:

How do you navigate these chaotic conditions and still come out on top?

For me, it’s all about focusing on strength, reliability, and high-probability setups.

Right now, the broader market is reeling—major indices are down double digits for the year, and President Trump’s tariff announcements have only added fuel to the fire.

But in every storm, there are pockets of opportunity. I’m not interested in chasing weak stocks hoping for a bounce.

Instead, I focus on the strongest stocks based on what the charts are telling me.

Altria (MO) has everything I look for in a trade: a strong technical setup, outperformance against the market, and a business model built for resilience.

MO is trading near its 52-week highs of $60.18, and the chart is showing a daily squeeze—a powerful signal that the stock is compressing energy for a potential breakout.

Add in stacked EMAs on both the daily and weekly charts, plus relative strength that’s outshining the broader market, and you’ve got a near-perfect setup to keep on your radar.

Let’s break down why MO is at the top of my watchlist this week.

Squeeze Patterns: Building Energy for a Breakout

One of the things I pay close attention to as a trader is volatility compression, and that’s exactly what a squeeze pattern represents.

A squeeze occurs when Bollinger Bands tighten inside the Keltner Channels, signaling that volatility has dropped and the stock is consolidating energy.

Think of it like a coiled spring: the longer it compresses, the more explosive the move when it finally releases.

For MO, the daily squeeze is present.

And when these patterns “fire,” they often lead to sustained moves over several trading sessions.

With MO trading near its highs, it’s a textbook setup for a breakout.

Stacked EMAs: A Clear Bullish Trend

Another critical piece of this setup is MO’s stacked exponential moving averages (EMAs). This occurs when shorter-term EMAs (like the 8-day and 21-day) are aligned above longer-term EMAs (such as the 34-day and 55-day).

Why is this important?

Stacked EMAs act as a visual confirmation of a strong, healthy trend. They also serve as dynamic support levels, providing a cushion for the stock during pullbacks.

For MO, the stacked EMAs on both the daily and weekly charts are a strong signal that buyers are in control and the bullish momentum is intact.

When you combine this with the squeeze patterns, it creates a high-probability setup for further upside.

Relative Strength: Standing Tall in a Weak Market

In a year where major indices are down double digits, MO has been a standout performer, up more than 8% year-to-date.

Relative strength like this is a key factor in my trading philosophy.

Why? Because it shows where institutional money is flowing.

When a stock outperforms during market chaos, it signals confidence from big players—funds, hedge managers, and other pros who are betting on its resilience.

MO’s ability to thrive in a weak market isn’t just a coincidence. It’s a defensive stock in the consumer staples sector, which tends to perform well during economic uncertainty.

Why MO Is Built to Thrive in Chaos

Let’s zoom out for a moment. Altria’s business model is designed for resilience. As a leader in the tobacco and nicotine industry, MO operates in a sector that doesn’t rely heavily on discretionary spending or global supply chains.

This makes it less vulnerable to the tariff risks and economic uncertainty that are hammering other sectors.

In times of market chaos, defensive plays like MO attract attention from investors looking for stability and cash flow.

Your Action Plan

Here’s where I stand with MO: I don’t have a position yet, but it’s firmly at the top of my watchlist.

With squeezes across multiple timeframes, stacked EMAs, and undeniable relative strength, MO has all the ingredients for a breakout. In a market full of uncertainty, this is exactly the kind of setup I focus on—a strong, reliable stock with both technical and fundamental alignment.

If the setup plays out as expected, I’ll look to take advantage with longer-dated call options, giving the trade room to develop.

And don’t forget—earnings season is just around the corner, which could provide even more opportunities for explosive moves.

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