Hey, Ross here:
As I expected, the market is pulling back. And as I said this is completely normal. So don’t fret.
Instead, check out an actionable trade idea that’s already paid off with double-digit returns in just a couple of days.
Chart of the Day
I’ve had my eye on this stock for months.
SoundHound (SOUN) is smaller, off-the-radar AI stock. The company owns several patents involving voice-recognition technology.
If you drive a Dodge, Chrysler, Jeep, Hyundai, Kia, Honda or Mercedes-Benz, you are probably using their software already.
HOUN ripped higher to start the year, but it got overcooked and settled back in the $3 range.
It had been forming a base for the previous four months with resistance near $3.35 (white line on chart).
On Friday last week (white arrow on chart), I saw SOUN trying to break out higher and decided to scoop up a few thousand shares.
As you can see, that trade has paid off – with the stock now up an impressive 19% in just two days.
I’m planning to add to my position as the stock advances – so there’s still time.
P.S. If you want to get trade ideas like these days before you see them here on this free newsletter, then check this out.
Insight of the Day
There’s a reason patterns work in trading.
Traders used to read stock prices off literal ticker tapes.
Today, we get them instantaneously on our personal devices thanks to the internet.
Technology has changed.
But what hasn’t changed is the fact that the best traders back then relied on patterns in their trading – exactly like the best traders today.
You just saw an example of a classic breakout pattern paying off – the same breakout patterns used for over at least a century now.
But that’s just one of the many patterns a trader should have at their disposal.
In the new bull market of 2023, the pattern I’m seeing the most success with is this one right here.
If you don’t already have it in your arsenal, I can almost guarantee you’re leaving money on the table.
Embrace the surge,
Editor, Stock Surge Daily