Hey, Ross here:
Another day, another dollar, and another actionable trade idea to start the official market open.
Chart of the Day
Yes. It is indeed another AI stock.
Marvell (MRVL) is a leading semiconductor stock whose products are used heavily in artificial intelligence applications.
The stock surged 40% in two days following a good earnings report and shares have consolidated in a tight range ever since.
MRVL tried to breach the low of the base on June 23, but we saw nice buying to support the price. The volume remained low, and the price action showed a nice “shallowing out”.
As of yesterday’s close, MRVL has broken above the short-term pivot (dashed line on chart) at $61.50.
This is a buyable opportunity.
I would suggest you use the June 23 low for a stop loss.
Insight of the Day
Even if the current scenario may seem “too good to be true” – we can still take advantage of it.
10 rate hikes in, and the S&P 500 is sitting higher than when the Fed first began hiking in March 2022.
The start of the “most predicted recession of all time” has been continually pushed back – from 2022 all the way till 2024.
Both the job market and the economy are still going strong.
A year ago, few would have thought we would actually be living through this scenario.
And for many, it all seems “too good to be true”.
I totally get that.
And I can’t tell you whether this dream “soft landing” scenario will persist or not (spoiler alert: no one can).
But what I CAN tell you is how to take advantage of it while the opportunity is still there – how to turn this environment into real money in your trading account.
That’s the beauty of trading – you can adapt your strategies to any market environment.
And right now, this strategy – the one I developed while working deep in the belly of Wall Street – is what I see working best.
Editor, Stock Surge Daily