Hey, Ross here:
As always, thanks for reading the Stock Surge Daily newsletter. Here’s what’s on the table for today.
Chart of the Day
CymaBay Therapeutics (CBAY) is another biotech stock making a huge move right now.
It is one of the small handful of breakouts that have played out as expected and followed through to the upside.
As of Friday morning, the stock is pulling back to its 10-day exponential moving average.
This is a good low-risk spot to place a long trade with a 6-7% stop.
Insight of the Day
Betting on fickle sentiment is a fool’s play
I told you how quickly the tables can turn. On Friday, the market rallied on hopes the Fed may let up after data showed slowing wage growth and a shrinking service sector. Yesterday, that rally fizzled out after two Fed officials said they saw interest rates rising above 5%.
And with earnings season coming up – one that many believe will be below expectations – don’t be surprised if the next few weeks are painful. Sure, we may see mini-rallies here and there. But don’t bet on them lasting.
Fortunately, the market is just the sum of all individual stocks’ movements. If the market falls, it means that more stocks have fallen than have risen on average. But it doesn’t mean that no stocks have gone up.
That’s how I’ve been able to consistently spot profitable opportunities even in this tough market. Because the “big money” is always moving – you just have to know how to take advantage of them.
Embrace the surge,
Editor, Stock Surge Daily