Hey, Ross here:
And let’s start the day with yet another actionable trade idea.
Chart of the Day
My fellow barbecue enthusiasts will recognize this name.
Traeger (COOK) changed the game a few years ago with its easy-to-use, app controlled, pellet smoker grill. The meat smoking trend grew tremendously popular doing COVID, allowing the company to rapidly grow its market share.
Several competitors have attempted to dethrone the BBQ king, but Traeger is the original and as such, sells at a premium. This is how the company is able to maintain gross margins of over 30%.
COOK went public in mid-2021 at $22 per share. It then fell 90% in last year’s bear market to less than $3.
But price has now stabilized, and the stock appears to be nearing the end of its Stage 1 basing process.
Volume is drying up nicely, the moving averages are turning upward, and volatility has come way down.
If COOK can get above the $4.50 area, it could trigger a new Stage 2 uptrend and a perfect buy point.
Breaking: Big ticket investors are rushing into this $3 “AI wonder stock”
Insight of the Day
The market usually needs time to “digest” significant price moves – whether upward or downward.
Both the S&P 500 and the Nasdaq have now risen for the past five consecutive months.
That’s something the market needs time to “digest” – and we’ll likely see that happen this month.
So, don’t be surprised if the index moves in August appear “lackluster” compared to the previous few months – this is perfectly normal.
On top of that, August is historically not the best month for stocks anyway – something which would likely stall the upward momentum a little.
The point here is not to worry if and when that happens.
We’re still in a new bull market – and there are still plenty of opportunities you can take advantage of.
Because remember, the leading stocks always move ahead of the indexes…
So, even if the indexes don’t go anywhere this month, you can still pick up some fast and solid gains from these stocks.
Embrace the surge,
Editor, Stock Surge Daily