Over the past two months, I’ve spent a lot of time talking about the dangers in the market. Warning investors about breakdowns, failed rallies, and stocks to avoid limiting losses. But the rule still stands: there’s always a bull market somewhere.

Today, I’m going to show you one way to find bull market stocks in any market conditions.

Only eight stocks in the entire S&P 500 have triggered a bullish “Golden Cross” pattern in the past week. But here’s what makes that short list even more compelling: each one comes from a different sector or industry. That’s a rare signal of healthy, diversified bullish momentum building beneath the surface of an otherwise choppy market.

One of the stocks will be familiar. It’s a stock that became a star during the last inflation-driven bear market, outperforming the S&P 500 by more than 4x in just a year. It’s not flashy, but it makes sense, even when consumers are watching their spending closely.

We’ll cover all eight stocks below, including that standout name. But first, let’s talk about what the Golden Cross means and why it’s one of the most watched technical signals in the market.

What Is a Golden Cross – And Why It Matters
A Golden Cross occurs when a stock’s short-term 50-day moving average crosses above its longer-term 200-day moving average. It’s a simple technical pattern, but historically, it’s known for its predictive power.

This crossover suggests a shift in long-term momentum. The shorter average turns higher first, often sparked by renewed buying pressure. Then, as the stock continues to move higher, it pulls the longer-term average up with it. When that crossover happens, it often catches the attention of institutional money and trend-following traders alike.

Golden Cross Facts:

  • Momentum shift: The Golden Cross reflects an acceleration in buying that can last 3–6 months, sometimes longer.
  • Crowd confirmation: Once the crossover is confirmed, volume typically increases as more traders jump in, fueling the trend.
  • Better than trendline breaks: While no signal is perfect, the Golden Cross is more reliable than basic breakouts above moving averages alone.
  • Beware of weak 200-day slopes: I discount any signal when the 200-day moving average is still in a declining trend. That means long-term momentum is still negative and any crossover could be a fake-out driven by short-term noise. One of today’s stocks is in this exact situation.

Let’s break down this week’s Golden Cross list. Eight stocks, eight sectors, one opportunity to build a bullish, diversified strategy.

Eight Golden Cross Stocks
Cadence Design Systems (CDNS) – Technology / Software
Cadence is a leader in electronic design automation — a critical toolmaker behind semiconductor innovation. CDNS quietly plays a behind-the-scenes role in the AI chip boom, giving it strong tailwinds. The Golden Cross here aligns with renewed strength in tech infrastructure stocks, and the 200-day is already flattening out, suggesting a longer-term trend change is underway.

Ecolab (ECL) – Materials / Specialty Chemicals
Ecolab is a sleeper pick in inflation-driven markets. It provides cleaning and sanitation solutions across foodservice, health, and industry. This stock outperformed during the last inflation cycle — and with defensive fundamentals and pricing power, it’s doing it again. The Golden Cross confirms institutional buying interest as investors seek stable, recession-resistant exposure.

HCA Healthcare (HCA) – Health Care / Providers
HCA is a hospital giant with growing pricing power and strong cash flow. Health care stocks often regain leadership in uncertain markets, and HCA’s Golden Cross is a bullish sign that institutional investors are rotating back into high-margin, service-driven medical businesses. Watch for this to become a quiet outperformer if volatility returns.

Huntington Ingalls (HII) – Industrials / Defense
HII is the largest military shipbuilding company in the U.S., and with rising global tensions and new defense budgets, demand isn’t slowing down. This Golden Cross comes as defense stocks regain footing after a choppy spring. The 50-day surge above a flat 200-day suggests accumulation is already happening.

Intuit (INTU) – Technology / Software
Intuit owns TurboTax and QuickBooks — two of the most entrenched names in financial productivity. While the software sector has been hit or miss, INTU’s recent rally above its long-term average suggests confidence is coming back. As small businesses gain footing and tax season results come in stronger than expected, the Golden Cross offers technical confirmation of that fundamental turnaround.

Nasdaq Inc. (NDAQ) – Financial / Investment Services
Nasdaq isn’t just a stock exchange — it’s a growing financial technology provider with strong margins. NDAQ’s technical setup improved significantly as the broader market found support in May, and this crossover looks like the start of a longer-term uptrend. The 200-day moving average has stabilized, supporting the signal.

Vistra Energy (VST) – Utilities / Electricity
Vistra has become a breakout name in the power sector, riding the wave of AI-driven electricity demand. It’s no coincidence this Golden Cross forms just as power prices start to climb and the narrative around energy reliability strengthens. Utilities may be defensive, but VST has growth baked in — and the chart shows momentum is accelerating.

Deep Dive into Today’s Featured Stock
Ulta Beauty (ULTA) – Consumer Discretionary / Specialty Retail

This is the stock that should be familiar.

Ulta was one of the most surprising leaders during the last inflation-driven bear market. While investors fled high-growth tech and cyclical names, Ulta quietly posted record-highs, and in the span of just 12 months, it outperformed the S&P 500 by more than 4x.

What’s the secret? The business is built around real consumer behavior that is relatively inelastic. Market trends over the last five years have shown that consumers have been willing to cut other areas of their budgets to continue “self care” habits. Ulta caters to this trend and has benefitted wildly from that.

Ulta sits in that “affordable luxury” category, a unique sweet spot in retail. When consumers are flush, they spend. When they’re tightening budgets, they still spend, just differently. Instead of big-ticket items or aspirational purchases, they turn to lower-cost indulgences. A $40 skincare product or $25 lipstick can deliver a boost without breaking the bank. Genius.

Ulta’s fundamentals are just as strong. With over 40 million loyalty members and a growing presence inside Target stores, it’s built-in repeat revenue and resilience. After a deep selloff this year, the stock’s 50-day just crossed above its 200-day moving average — signaling a potential bottom and fresh momentum. Volume is rising too, suggesting institutions are getting back in.

If this rally holds, Ulta could be on its way to repeating its last breakout performance — and few investors will be ready for it until it’s already too late.

How to Trade Ulta
Ulta is benefitting from two “signals”, both suggesting that the stock could go on a run back to its all-time highs at $575. That would be another 23% higher from today’s price and when you add the extra move to $600 that my target price expects it opens the opportunity for a 30% gain.

I trade the stock in one of two ways here:

Simple Buy and Hold: Keep it simple and buy an allocation of stock for my portfolio using a limit price of $465. Yes, $465 is lower than today’s price, but I think that we will see profit-taking over the next week following Ulta’s one-day 12% rally after earnings.

Leveraged Approach: Many investors will shy away from buying a stock that is $470 per share. First of all, don’t buy stocks based on their price alone. Too many investors buy stocks under $10 because they are “cheaper” — they aren’t. You’re buying the value of the company, and that is not reflected by a simple price. Think about that for a minute.

For those that want to leverage the move and potentially allocate less money to the trade, consider a long-term call option.

LEAP options offer long-term exposure with lower upfront cost, allowing investors to control stock positions, hedge risk, or profit from major moves over time.

In this case, I would consider the June 18, 2027 $500 call option as a viable leveraged option for the stock.

The call option is currently priced at $6,250 per contract and provides control of 100 shares of Ulta through its expiration.

Looking forward, if the price of Ulta were to reach my target of $600 by December 1, 2025, this option would have a theoretical value of $12,616. That would net a gain of 101% compared to gains of 29% on the stock.

Disclosure: Options involve risk and are not suitable for all investors. You should have the appropriate level of experience and education before trading. Please review the Options Disclosure Document (ODD). Past performance is not indicative of future results.

Bottom Line
The Golden Cross can be one of the most powerful momentum indicators in a trader’s playbook — especially when it shows up across multiple sectors during a choppy market. These eight stocks are flashing early signs of strength, and for bullish investors looking to rebuild exposure, they offer a smart, diversified starting point.

That said, don’t chase every signal blindly.

We’re heading into the summer, a season marked by thinner volume, volatility spikes, and headline-driven reversals. Use these technical setups as a foundation but maintain discipline through the volatile months.

— Chris Johnson

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Source: Money Morning