Hey, Ross here:
Looking for good trade ideas in this market? Check this out.
Chart of the Day
iQIYI (IQ) is a Chinese streaming service similar to Netflix.
I tend to stay away from Chinese stocks for a number of reasons, but this one is hard to ignore.
Shares are up 245% in the last two months with minimal retracement along the way.
It got a bit extended from its 10-day moving average last week, but I would consider buying on a pullback to it.
Insight of the Day
Don’t get swept up by the optimism even if tomorrow’s CPI numbers spark a rally.
Markets are already up in anticipation of tomorrow’s CPI data. They expect the numbers to show that the Fed’s hikes have had the desired effect, that it can stop the rate hikes – and that it may even be able to stick its “soft landing” and avoid a recession altogether.
I would love all that to be true. But I’m not going to allow myself to get swept up by the optimism – no matter how positive tomorrow’s numbers are.
Because that’s the key to being a successful trader – discipline in the face of strong emotions (whether positive or negative).
That’s why I’m not making any bets based on this kind of short-term sentiment. Instead, I’m focused on higher-percentage strategies that rely on more enduring advantages – such as big jumps in stock prices thanks to institutional money flows.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
