Home » On Shorting “Broken Leaders” and Finding Lasting Edges

On Shorting “Broken Leaders” and Finding Lasting Edges

Published December 8, 2022

Welcome to the second half of the trading week. Here’s your actionable trading advice of the day.

Chart of the Day

Medical diagnostics company Lantheus Holdings (LNTH) is a classic example of what I call a “broken leader”. This is a stock that once led the market but has now rolled over and begun its decline.

We made money shorting this stock near $77 back in October. Last weekend, I added it to my short watchlist for my Stealth Trades members – noting that I would consider getting short again in the $62–$65 area with the 50- and 200-day moving averages above likely to act as resistance.

The stock is now forming a shelf near the $55 level.A break of that would be a good place for a new short entry.

Earlier this week on Monday, the company said it intends to raise $500 million in debt – a massive increase in its debt levels – causing the stock to drop. Stealth Trades members who acted on my recommendation could have pocketed some handsome gains (find out more about Stealth Trades by clicking here).

But from what I’ve seen with other “broken leaders”, I think there’s still further room for the stock to fall.

Insight of the Day

Stay focused on your trading edge instead of playing “guess what the Fed will do” like the rest of the market.

The Fed meets next Wednesday, and everyone’s trying to guess the size of the rate hike they’re sure to deliver.

Will it be yet another jumbo 75-point hike on the back of a strong labor market and better-than-expected economic data? Or will it be a smaller hike, considering that inflation seems to be slowly coming down, and Powell said earlier they “could” be on the path to reducing the size of these hikes.

Here’s my advice – stop playing “guess what the Fed will do” (even if it seems everybody’s doing it). The chance of being wrong is simply too high, not to mention the number of investors who’ll be on the “other side” of your bet.
Instead, a far better strategy is to focus on getting a trading edge that will persist no matter what the Fed – or even the broader market – does. And if you don’t have such an edge yet, then click here to find out about an edge so powerful it has all the politicians flocking towards it.

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

Stocks within Article - LNTH

alpha stocks, Dow, Market, Stock Charts, Stocks to watch, Surge Stock Indicators

Even Bill Gates himself has said that generative AI has “peaked” and that the next version of ChatGPT won’t be much better than the current version.

So where will the next wave of AI innovation – and profits – come from?

Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

STOCK SURGE DAILY

With Ross Givens

Looking for an edge? Ross has the inside scoop on top analysis that will help grow your portfolio.. Receive a new stock opportunity every day and get ready to see your investment SURGE!

Tech stocks are rallying – and Ross Givens’ #1 Tech Stock of the Decade has been making BIG moves you don’t want to miss.

Recent Posts

Réjean Roberge

November 28, 2023

I'm a new member of 'Insider Effect' and sent a support email and was responded to within minutes. It starts very well.

Philippe Rocher

I'm happy I recently opted in to the Ross Givens's Trading Club at Traders Agency (at the best and fairest offer I could possibly get). I'm new to trading U.S. stocks and options on a regular basis but it doesn't matter, Ross does all of the hard work for me while I'm trading at my own pace (he knows how to trade successfully most of the time and I know that I won't win every trade. Fair enough). He and his great team share a lot of their trading experience in live sessions. Great job. Thanks a lot!

CB Tudor

November 20, 2023

Excellent, very educative and honest service! Worth every penny and more.

Jay Herpick

November 11, 2023

I've found your buying of stocks and options very helpfull. Just wish I had found you folks five years ago. Your friend, Jay H

Ned Ewing

November 6, 2023

I've been working with Ross Givens and have learned a lot. Support has been very helpful and on top of response times. :)

donald macdonald

October 23, 2023

Great session! Ross explains everything well!

Jim Bowen

October 10, 2023

I started with Ross Givens and Trader's Agency GOLD in September of this year and have had some significant success on all but one of the trades he suggested. I have actually made 157% in profits over what I paid to join Traders Agency within my first 30 days. I am no stock expert and I want to know more about how to invest in the market. Ross's videos and strategy sessions are very insightful, and you can chat during the sessions to get his feedback. He's got all the tools at his disposal and has set up some good algorithms in order to help one understand the chaos and fundamentals to watch for in order to make a good investing decision. I have had other investment "helpers" that never yielded what I have within such a limited amount of time. I think Ross, and his team, is the "Real Deal"

Andrew O'Boyle

September 20, 2023

I have been a member of Traders Agency for 3 months. Ross is the real deal! I could not be happier with my results! Thank you Ross and the Traders Agency Team! I found my passion :)

Philip McElroy

September 14, 2023

World Class customer service and I would am really qualified to make this statement.