Welcome to Tuesday’s edition of Stock Surge Daily. Worried by the drop in the market yesterday? Then don’t miss today’s edition.
Chart of the Day
Solar tech company Enphase Energy (ENPH) has been a market leader for most of 2022, with its stock popping by 82% this year.
I have highlighted the solar sector dozens of times this year as a standout that could lead the next bull market. And ENPH is undoubtedly one of the top dogs in the group.
We actually bought this stock back in July in my Alpha Stocks service after it formed a similar breakout pattern. Shares soared 40% over the next three weeks – delivering a nice gain for my members.
After a series of ever-shallower pullbacks, a defined resistance level, and decreasing volume at its highs, it finally broke through the resistance level on high volume. This was almost the exact same pattern as in July.
As such, I think there’s a good chance the stock could make another fresh move higher. Consider buying in, but with a tight stop at $303.
P.S. Interested in finding out how you could make fast double-digit gains like on ENPH with my Alpha Stocks strategy? Click here to find out more.
Insight of the Day
The market is full of counterintuitive truths – accept them or get left behind
If all you did was read the financial news after the market closed yesterday, you would think we were in the middle of a giant rout. “Dow plunges 500 points” seems to be the main headline the mainstream media is using to grab eyeballs.
But here’s the counterintuitive truth. The main reason markets fell yesterday was the release of stronger-than-expected economic data – specifically the ISM Services PMI Index and volume of Factory Orders. This means the Fed “could” continue aggressively raising rates since the economy could theoretically have more room to absorb them.
It’s a topsy-turvy world we live in when strong economic data causes the stock market to fall. But that’s the current reality. And investors who are unable to grasp these counterintuitive truths will always be behind the curve.
And one of the most difficult counterintuitive truths for investors to grasp? That quick small wins compounded over time can actually be more lucrative than just a few multi-baggers (which are much rarer).
That’s the entire basis of my Alpha Stocks strategy, which could have turned a starting amount of $2,500 into a staggering $234,694. A counterintuitive truth – but a truth nonetheless. If you’re interested in watching me break down this strategy and how you could use it for yourself, click here.
Embrace the surge,
Editor, Stock Surge Daily