The recent Nvidia earnings release, despite its hype, didn’t turn out to be the market-defining event many expected.

Interestingly, the Nasdaq rallied even as Nvidia shares initially sold off on Thursday.

This outcome underscores a crucial lesson in trading: don’t get too caught up in the news.

Often, it’s just noise that can cloud your judgment.

I was able to grow my trading account from $37K to $2.7 million in four years by focusing on what truly matters – identifying and acting on A+ setups.

This approach requires setting aside personal biases and concentrating on solid opportunities.

That’s exactly what I aim to share with you in this watchlist.

Today’s idea follows this same principle of seeking high-potential setups.

To streamline this process, I’ve been utilizing the S.A.M. AI Scanner, a tool that has significantly enhanced my ability to identify promising trades.

The cool thing about it, is it often finds symbols I would rarely find on my own.

And today’s watchlist idea is one of those, Air Products and Chemicals (APD)

Air Products and Chemicals (APD) is a major industrial gasses company that provides essential products and services to various industries.

They produce and distribute atmospheric gasses (like oxygen and nitrogen), process gasses, and specialty gasses.

It released their Q3 2024 earnings in early August 2024, reporting strong results that exceeded previous guidance.

The company’s earnings per share reached $3.13, marking a 17% increase from the previous year, while adjusted EBITDA hit $1.3 billion with an impressive margin of 42.4%.

APD maintained its positive outlook by confirming its full-year 2024 adjusted EPS guidance of $12.20 to $12.50, projecting a 6-9% year-over-year increase.

Additionally, the company announced plans for new air separation units and revealed a significant green hydrogen agreement with TotalEnergies, underscoring its commitment to sustainable growth and expansion in the clean energy sector.

Following its earnings release, shares jumped from $263 to a high of $296 in reaction.

Typically after a big earnings win I will wait to see if the stock can hold its move and consolidate. Which is what has happened with APD.

In fact, shares have been trading the high 270s for a few weeks now.

So what do I like about the setup?

Well, it’s in a daily squeeze.

A squeeze signaling a potential big move in a stock after a period of low volatility is like a coiled spring.

The longer the spring is compressed, the more potential energy it stores. When finally released, this stored energy results in a powerful and rapid expansion.

Similarly, a stock that has been trading in a tight range for an extended period can build up significant pressure.

When market forces finally trigger a breakout, the stock price can move dramatically and swiftly in either direction, much like the sudden release of a tightly coiled spring.

Shares are within 10% of its 52-week high of $307.71.

And if you take a closer look it has an inside day.

An inside day is often considered bullish because it represents a period of consolidation within an uptrend, suggesting that sellers couldn’t push prices lower, and potentially signaling a buildup of energy for a continued upward move.

But that’s not all…

It has stacked EMAs.

Stacked EMAs (Exponential Moving Averages) are considered bullish when they are aligned in ascending order from shortest to longest time frame, as this configuration indicates strong upward momentum across multiple time periods, suggesting a robust and sustained uptrend.

In addition, there were A+ setups on the daily, 195-minute, 130-minute, and 30-minute time frames according to the S.A.M. AI Scanner.

As you can see, the setup checks a lot of boxes for me, and why I believe there’s a strong chance the stock surges higher from here.

Action Plan: I’m closely watching APD for an entry in Daily Profits Live Portfolio, if I take a position, I will do it using options via call options.

The setup checks several boxes for me and I believe the stock has a strong probability of trading higher over the next few days to weeks.

If you’d like to learn more about what and how I trade in Daily Profits Live, check this out.