Hey, Ross here:
Before you head off into the New Year’s weekend, here’s what I got for you today. Enjoy!
Chart of the Day
Healthtech company Privia Health (PRVA) is a broken leader under heavy selling pressure.
After a 147% rally from May to August, the stock put in a double top and began rolling over. Its shares then fell by almost half over the next two months.
For the past few weeks, PRVA has been putting in a shelf at its lows. Notice how the move above the 21-day moving average was immediately rejected.
Now that the stock has fallen through this short-term support level, I will consider selling short for another leg lower.
Insight of the Day
Stop looking for “reasons” behind every little daily market move
The market rallied pretty strongly yesterday, with the S&P 500 gaining almost 2% and the NASDAQ rising by more than 2.5%.
Unsurprisingly, the financial news media is now packed full of “reasons” why this rally happened.
Was it an abbreviated Santa Claus rally? Was it because the recent selling was mainly due to tax-loss harvesting – and now investors are coming back in? Or was it because of the latest unemployment claims data?
For all I know, it could be none – or all – of the above. I don’t really care. Stop wasting time looking for “reasons” behind every little daily market move, and focus on what actually matters.
The best traders in the world all knew how to zero in on what moves the needle and ignore everything else. And after conducting in-depth research on their past strategies – what allowed them to succeed in any market – this is what I found.
Editor, Stock Surge Daily