Hey, Ross here:
Welcome to a new trading week! Here’s what I got for you to start.
Chart of the Day
Immunovant (IMVT) is a biotech company developing therapies for patients living with autoimmune diseases.
This uptrend is about as pretty as it gets.
After doubling in a week in early October, the stock formed a tight consolidation and then broke out to new highs.
It has been riding its 10-day moving average (yellow line) for three months with almost no retracement.
With a stock like this, I like to buy any pullbacks to the 10-day EMA and place a stop beneath the 21-day (blue line). It keeps risk at less than 10% while still allowing me to participate in what can be a powerful move higher.
Insight of the Day
How long are you going to keep trusting these “I-hope-the-Fed-eases-up” rallies?
Last Friday marked the first “major” rally of 2023, after new data showed wages growing slower than expected and a contraction in the service sector. This indicated the Fed’s hikes may be having the desired effect – sparking hope it would ease up on future hikes.
But if any new data comes out showing that inflation may still be persistent, the entire rally is likely to fizzle out – and the market will sink. We saw this pattern play out all too often last year.
Yet, too many traders are just sitting and hoping for the Fed to come and save them. I’m not saying it won’t happen. But I am saying that while those people are sitting and waiting, you could still be putting profits in your account in the meantime.
How, you ask? Well, there are many strategies that are still working. But my favorite is by entering a stock right before the institutional money does, so you could profit from the subsequent surge.
The key to this strategy is being able to identify the unique signs that the big money is about to strike. And for a limited time only, I’m showing you how to spot these signs for the price of a cheap sandwich.
Embrace the surge,
Editor, Stock Surge Daily