Hey, Ross here:
The year is ending but the opportunities just keep coming. Here’s a trading idea for you today.
Chart of the Day
International Money Express (IMXI) is unquestionably a short. Just look at the massive selling on heavy volume that occurred in early November.
A relatively stable stock falling 30% in two weeks is a significant change in behavior, and it signals that institutions are dumping the stock in mass.
Shares have grinded higher over the last few weeks but still haven’t made any significant progress.
IMXI is now trading against a previous support level which coincides with its 50 and 200-day moving averages. That is a lot of resistance to get through.
The low-risk play here is a short, since you only need to risk 4–5% on the trade to see if it plays out as we expect.
Insight of the Day
Always be ready to kill your darlings
Look at this headline from yesterday:
It’s one thing to think a company is a good buy – it’s another to be a diehard “fan” of a company’s stock.
As traders, we must always be ready to kill (sell) our “favorite” stocks – if that’s what our strategy calls for. But all too often, I see people cling on to a stock, even making it part of their identity (I’m a Tesla investor!).
I admit – I do have my favorite stocks. But the moment my strategy tells me it’s time to sell, I do it (I can always buy back in later if conditions are right).
That’s why my flagship strategy is still net positive this year – because I’m always willing to take profits when the time comes.
Remember, you don’t need multi-bagger wins to make spectacular returns. You just need to keep stacking the consistent profits my strategy could provide. See the proof for yourself here.
Ross Givens
Editor, Stock Surge Daily
