Hey, Ross here:
Welcome to Thursday’s edition of Stock Surge Daily. Here’s a trading idea to consider.
Chart of the Day
Cosmetics company e.l.f. Beauty (ELF) is a stock I have been talking about for a while – and for good reason.
The Nasdaq is just 4% above multi-year lows, yet ELF is up making new highs. The stock is consolidating around the $55 level and simply refuses to sell off.
If the market shows strength and the indexes push higher, be prepared for ELF to make a big move to the upside.
Insight of the Day
Think carefully about the opportunity costs of waiting for a market bottom.
The Fed’s recent minutes confirmed that higher rates are here to stay until much more substantial progress is made on inflation – crushing the hopes of those betting on the Fed to reverse course and pump the market with rate cuts instead.
That’s why I don’t expect the market to bottom for at least a few months. And you shouldn’t either. But this doesn’t mean you should just sit on the sidelines waiting for a bottom. There are two reasons for this.
The first is you won’t know where the true bottom is until the market has already jumped significantly – meaning you’re likely to miss a large chunk of the gains.
The second is the sheer opportunity costs of waiting on the sidelines. Instead of using tactical trading to target the short-term opportunities that are always there – you’re just letting inflation eat away at your portfolio. You’re losing both potential gains AND depleting your real wealth. A double whammy.
And if you want a system that’s perfectly designed for tactical trading – then I suggest you check this out.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
