Hey, Ross here:
And before I blast that idiot Powell for once again trying his level best to push the market down, let’s look at an actionable trade idea to start the day.
Chart of the Day
One way to play the AI trend is to make a bet on the entire sector.
The easiest way to do this is with an exchange traded fund, or ETF. ETFs trade just like regular stocks. But each share represents fractional ownership in a basket of stocks.
The iShares Robotics & AI ETF (IRBO) owns 133 stocks with exposure to robotics and artificial intelligence.
For me, this is a longer-term trade I would like to hold for several months which is why I bought it in my IRA account last Friday.
You can see the first Stage 2 breakout in the weekly chart above.
Thanks to the pullback over the past couple of days, IRBO is now trading closer to my ideal buy point of $32 – meaning you could get in at a better price than I did.
I will hold IRBO as long as it holds above $28.
Insight of the Day
The Fed is trying to hold back the bull market – but it’s only creating opportunities.
Yesterday, Powell testified to Congress that more rate hikes are still “likely” in store this year.
But he once again hedged his bet by saying they would operate on a meeting-by-meeting basis, depending on the latest data.
Naturally, this caused the market to pull back further – and more investors to lose optimism in the new bull market (which I’ve been talking about since March).
But as I said a couple days ago, many tech stocks are overbought.
So, for savvy traders like us, the Fed’s incompetence is actually creating an opportunity to buy select stocks as they pull back closer to ideal buy levels (see today’s IRBO trade, for example).
Embrace the surge,
Editor, Stock Surge Daily