Here’s what I got for you for Wednesday’s Stock Surge Daily – happy trading!
Chart of the Day
Even after aggressive buying at the end of November, nuclear fuel company Centrus Energy (LEU) has been unable to rally.
I added this to my short watchlist over the weekend when the stock was testing its 21-day moving average above.
Notice how the stock formed a “shelf” near the $36 area that was supporting the stock.
Now the stock is breaking through the $36 shelf support, through the 200-day moving average, and doing so on above-average selling volume.
Unless the market bounces hard here, LEU looks poised for a further move lower.
Insight of the Day
When the market isn’t sure which direction it wants to go – it’s best to play a tight game
In the past few weeks, we’ve seen stocks rally because of lower-than-expected inflation data and Powell saying the Fed “might” ease up on rate hikes. But we’ve also seen them fall on the back of stronger-than-expected economic data AND fears of an upcoming recession (yes, it’s contradictory).
In times like these, I believe betting on the direction of the broader market is the wrong way to go. Instead, it’s time to drill down closely on individual stocks and focus on low-risk, high-probability trades. It’s also crucial to not get greedy and take profits when you have them.
The question is – how do you identify a high-probability trade in the first place? One of my favorite ways to do so is to follow the lead of those with information the rest of the market doesn’t have.
Is that unfair? Definitely. But I don’t make the rules, I’m just here to exploit them to make money. And I’ve gone “undercover” to expose this unfair – yet perfectly legal – trading strategy used by some of the most corrupt politicians in Washington. Click here to watch my exposé now.
Embrace the surge,
Editor, Stock Surge Daily