The momentum stock our engine caught touching support today

What the system saw

CORT has been one of the strongest names in the market over the past 63 days — 93rd percentile, to be specific. And right now it's sitting almost exactly on its 20-day moving average. That combination is precisely what our Relative Strength Engine is built to find: a stock that's been leading, pulled back just enough to touch support, and then reclaimed it. CORT touched $90.00 intraday today and closed back above the 20dma at $91.23. That's the reclaim. The engine caught it. We're now 16 days into this paper-trading experiment. The system is down 2.4% against SPY's -1.6% over the same window, with a win rate of 0 for 4 on closed trades. We're not pretending that's a good start — it isn't. But the signals keep coming, and we keep logging them honestly.

Why our Relative Strength Engine liked it

The logic here is straightforward, even if the setup takes patience to wait for. Stocks in the top decile of relative strength tend to stay there longer than most people expect. When they pull back to a well-watched level like the 20dma and then recover it intraday, you often get a second leg higher. That's the move the engine is betting on with CORT. The score breakdown shows relative strength rank and proximity to support doing most of the heavy lifting — 26 points and 15.3 points respectively — with the intraday reclaim adding another 13.8. Volume dried up on the pullback, which is exactly what you want to see: sellers weren't pressing. Now, the fundamentals deserve an honest look. The valuation here is not modest — P/E sits at 204x, EV/EBITDA is around 690x, and the DCF model lands closer to $60 for fair value. Analyst consensus is Buy, but the average target sits right around the current price, so there's little fundamental upside being priced in. Revenue has grown nicely over three years, though EPS dipped in the most recent period. This is a chart-driven, momentum-driven setup — not a value play. Keep that in mind before you size anything.

The trade plan

The Relative Strength Engine entered CORT at $91.88. The stop sits at $84.77, putting risk at $7.10 per share. The system's 2R target is $106.08. We're putting $4,778 behind it — 52 shares in the paper account. That entry lands right on top of the 20dma, which is why the stop has breathing room below it: the level needs space to work without the trade getting immediately invalidated. If CORT loses $84.77 with conviction, the thesis is gone.

Position size: our paper account is putting about $4,778 (52 shares) into this trade, sized to risk roughly $370 if our stop is hit. This is what the system committed in its paper account — not a suggestion of how much you should put into any trade.

What could go wrong

The conviction score comes in at 65.1 out of 100 — a middle-of-the-road reading, not a screaming signal. The 'held support' component scored zero, meaning the system didn't give full credit for how cleanly the level held. The valuation gap between where CORT trades and what the DCF suggests is wide, and if the broader market keeps leaking — SPY was flat today but hasn't exactly been inspiring — high-multiple names like this tend to get hit harder and faster than the rest. We're also carrying two open positions: EVC is down 5.7% on day 14, SNOW is up 0.7% on day 1. The portfolio isn't running hot.

One more thought before we go

At some point the win rate has to move. We're watching to see if CORT is where that starts — or whether the market still has more work to do before momentum setups like this one begin to follow through.