Hey, Ross here:
My theme for this year is all about taking massive action so you don’t have to depend on the Fed or the government to engineer a recovery that may never come.
With that being said, here’s your actionable trading idea for the day:
Chart of the Day
Weapons manufacturer Axon Enterprise (AXON) made a textbook breakout in late October to rally 47% in a month.
But the move is running out of steam.
The stock is now holding beneath a declining 21-day moving average and just breached its 50-day.It is also breaking below its December support shelf.
You could take a short position here with a stop at $173 to risk just 4% on the trade.
Insight of the Day
The retail herd can’t seem to stop themselves from clinging on to past winners.
Look at this chart.
It shows that in 2022, Tesla was the most bought stock of them all – despite a staggering 70% plunge over the past year.
This tells us that while the “pros” – the smart money – were selling, the retail herd couldn’t help themselves from “buying the dip” on Tesla.
All those positions are probably deep in the red right now – but they’re no doubt convincing themselves that it’ll rebound to 2021 levels this year.
That’s not how I (or most pros) play these kinds of markets. Instead of desperately clinging on to past winners hoping they’ll soon be restored to their former glory, it’s much better to look for stocks that are about to break out NOW – and then move in for fast profits.
That’s the whole premise behind my Stealth Trades strategy. The secret sauce? Getting in right alongside the big institutional money – even when they try to hide their tracks. Click here to find out more.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
