Hey, Ross here:
And let’s end the trading week by looking at what it might take for the uptrend to continue.
Chart of the Day
Technology stocks – particularly big tech stocks – have led the 2023 market rally. The Nasdaq100 index is a good gauge of this particular class of stocks.
And as you can see, it’s currently testing the 15,000 support level – a level which is not only psychological, but also matches the March 2022 highs as well as the 50-day moving average (green line on chart).
The bulls will need to step in here to support this level if the uptrend is to continue.
If they step in, we’ll likely see the uptrend continue.
If they don’t, there’s a chance we may see the market fall toward the next support level, which is about 13,700 – formed by the August 2022 highs.
Insight of the Day
Certain market conditions favor certain strategies
Certain strategies work better in certain market conditions.
That may seem obvious – but there are loads of “gurus” out there trying to tell you otherwise.
For instance, my FIRE strategy – which is based on buying pullbacks within larger uptrends – absolutely crushed this year.
I’m talking gains of 100% and more in just a few months, and gains of 50–90% within weeks.
But if the larger uptrend is stalling, it may no longer be the ideal strategy for the situation.
Only time will tell.
Wwhen the market shifts, we must shift with it. Adapt or die.
Speaking of market conditions, it’s still earnings season – a time where there are multiple opportunities for fast gains no matter what the broader market is doing.
And I believe the best strategy for playing earnings season is this “insider” strategy right here.
Embrace the surge,
Editor, Stock Surge Daily