Hey, Ross here:
Inflation may have come in slightly hotter than expected – but it did not have any significant negative effect on the market so far.
So let’s start the day with an actionable trade idea.
Chart of the Day
This is a weekly chart of Vmware (VMW). And as you can see, VMW has not been able to clear the $170 level for the last four years. That is significant resistance.
A move through this area could finally trigger the next wave higher for the stock.
The daily chart below shows the most recent price action.
After a powerful move higher, shares have consolidated for the last few weeks in a compressing pattern above the 21-day EMA. This is very constructive action.
As long as VMW holds above its 50-day moving average (green line on chart) I would be bullish on this stock.
Insight of the Day
There is a good chance the Fed will look past the latest “hot” CPI numbers.
If you’ve been reading this newsletter for any amount of time, you know I don’t think much of Fed Chair Powell.
So, for the many investors and traders out there who share my dim view of his capabilities…
They might think that another rate hike is coming down the pipeline next week.
But few know that the Fed actually focuses more on “core CPI” rather than the headline numbers…
And as the graph below shows, the recent surge in oil prices – which was largely responsible for the “hot” headline CPI numbers hasn’t really been passed through to core CPI numbers…
Meaning there’s a good chance the Fed may look past it and pause next week.
If that’s the case, you want to position yourself in the best stocks before that happens…
Which is why I’m going LIVE tomorrow at 12 p.m. Eastern to show you exactly how to do that.
And I’ll explain everything tomorrow at 12 p.m. sharp.
Embrace the surge,
Editor, Stock Surge Daily