Hey, Ross here:
Hope you enjoyed the long weekend. Here’s what I got for you to start the week.
Chart of the Day
Madrigal Pharmaceuticals (MDGL) made a huge move in December following positive Phase 3 drug trial results.
The stock climbed 424% in just six days.
Shares are now forming a tight base with resistance near $305.
Watch for a breakout higher accompanied by a surge in volume. This could signal another leg higher.
Insight of the Day
The market moves fast. So must you.
For the past few weeks, I’ve been focusing mostly on short ideas. But in light of the recent rally – which also achieved something called “breakaway momentum” for 10 days straight – I’m back on the long train.
If you’re in any way surprised by that, it probably means you’re not able to shift gears quickly enough. That’s something you need to work on to become a successful trader.
The market tides shift fast, and your boat must be able to maneuver just as swiftly – even when it’s sometimes counterintuitive.
One example of that is when a beaten down stock suddenly sees buying activity from a highly select group of traders. Because when those traders buy a stock – no matter how battered it may seem – there’s usually always a reason the market isn’t seeing. I explain this strange phenomenon here.
Embrace the surge,
Editor, Stock Surge Daily