Hey, Ross here:
As we start a new trading week, let’s look at how the market moved last week – and my plan moving forward.
Chart of the Day
Last week was one of the strongest weeks for stocks I can remember.
The indexes performed very well. The Nasdaq gained roughly 4% and the S&P was up 2.5%.
But there were some huge movers in the areas we have been focusing on.
AI continues to be the theme of this bull market. Stocks with exposure to artificial intelligence are by and large outperforming other names.
We have been cherry picking this basket of stocks to find setups within this leading group, and the results have been tremendous.
Another factor that helped propel stocks this week was a weak dollar.
All things being equal, stock prices tend to move inverse of the US dollar.
Note the dollar’s performance during last year’s bear market in the above chart.
Today that chart has flipped, and the USD just broke down through support.
The market has been on fire. A collapsing dollar has added diesel fuel to that fire.
Will the dollar keep falling? I don’t know. From a technical perspective, it looks to be heading lower. And news stories about BRIC nations creating their own currency and moving away from the US dollar are only making things worse.
Insight of the Day
To find winning stocks, focus on the ones within 5–10% of new highs when the rest of the market is pulling back.
This is one of the most high-percentage trading formulas I know of.
If you’re serious about making money trading, write it down and put it somewhere near your computer so you don’t forget it.
This formula has been responsible for recent fast gains like:
And these are just a few examples among many.
So if you’re interested in using this winning formula for yourself….
Editor, Stock Surge Daily