As President Donald Trump’s ongoing trade wars continue to create turmoil on Wall Street, the number of stocks listed on the Investor’s Business Daily (IBD) Leaderboard has significantly diminished, now counting just seven stocks—three full members and four others on the watchlist. Among these, Ollie’s Bargain Outlet (OLLI), which was highlighted as the IBD Stock of the Day on April 1, joins Agnico-Eagle Mines (AEM) and TG Therapeutics (TGTX) as full members of the Leaderboard.

The watchlist includes Intuitive Surgical (ISRG), ADMA Biologics (ADMA), Amer Sports (AS), and Doximity (DOCS), showcasing a narrow selection of stocks that are currently on investors' radar.

Trump's aggressive tariff policies directed at nations like Canada, China, and members of the European Union have plunged the Nasdaq index into bear market territory. This downturn has seen the tech-heavy Nasdaq drop over 20% from its peak of 20,204.58 on December 16, 2022. As the market struggles to recover, it experienced another significant decline early on Monday, adding to the challenges faced by investors.

In this volatile environment, few stocks have managed to remain unscathed. The IBD’s investment methodology emphasizes the importance of risk management and provides clear guidelines on when to sell stocks. While making new stock purchases at this time carries considerable risk, astute investors continue to monitor and compile a list of stocks poised for potential resurgence.

Investors must prepare for the eventual market recovery, ensuring they have sound strategies in place for buying stocks when conditions improve. It’s crucial to be alert to emerging opportunities as the market finds its footing once again.

With the current bear market taking a toll, safeguarding investments becomes paramount. The sharp declines in major market indexes have led to a reduced roster of stocks on the IBD Leaderboard, a trend that many investors expected given the circumstances.

Notably, Ollie’s Bargain Outlet has shown resilience compared to the broader market, evidenced by a notable increase in its relative strength line. While the current climate is not ideal for new purchases, Ollie’s remains above its 50-day moving average, nearing a buy point of 115.42, which it cleared on March 31.

As the bear market continues, investors should keep a close watch on the performance of stocks on the IBD Leaderboard, particularly monitoring their ability to maintain support levels above the critical 50-day moving average. Stocks like Agnico-Eagle Mines, TG Therapeutics, and ADMA Biologics will be key indicators of market stability.

Intuitive Surgical, on the other hand, has shown a decline, slipping below both its 50-day and 200-day moving averages last month. Effective risk management demands that investors stay vigilant and track the interplay between different moving averages. A crucial signal of improving market health occurs when a shorter-term moving average crosses back above a longer-term moving average, a trend recently observed with Ollie’s Bargain Outlet as its 21-day exponential moving average surpassed the 50-day benchmark last week.

Conversely, Doximity has demonstrated weakening momentum, with its 21-day moving average diving below its 50-day line. As the bear market unfolds, these moving averages serve as essential tools for assessing the health and potential recovery of stocks.

Looking ahead, the shift from a bearish to a bullish market will not happen overnight. Investors should focus less on previously successful stocks and instead scout for new entrants that could lead the next market rally.

To assist in this endeavor, investors can utilize the resources available on the IBD Leaderboard, where they can run customized stock screenings based on personal investment criteria. Additionally, exploring other specialized stock lists and employing the IBD Stock Checkup can help evaluate the fundamental and technical strengths of potential investments.

For more insights, follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.