Hey, Ross here:
Here’s what I got for you today.
Chart of the Day
Danish biotech Genmab (GMAB) emerged from the consolidation stage in late October and has trended beautifully ever since.
The yellow line on the chart is the 10-day exponential moving average (EMA). A top-performing stock on a good rally will hold this line and ride it higher. This is exactly what we have seen with GMAB.
Further, on December 11, the biotech company showcased positive data from its most recent drug trial. This could send the stock even higher.
Powerful stocks like GMAB often undergo what is known as a “lockout rally”. This is where it pushes higher with almost zero pause, essentially “locking out” traders who are waiting for a more constructive setup.
In instances like this, I’ve found the easiest approach is to buy when the stock pulls back from whatever moving average the stock is respecting. In GMAB’s case, it’s the 10-day EMA – so keep a close eye on that.
Insight of the Day
Remember there are always different rules for the big guys and the little guys.
Yesterday, the DOJ and SEC charged eight social media influencers for securities fraud – basically your classic pump-and-dump scheme. According to the filing, these influencers made over $100 million in illegal gains.
Now, what those influencers did was both highly illegal and unethical – no question about it. But the system always has different rules for the big guys and the little guys.
When the little guys do it, they go to jail. When the big boys do it, they get rich. What both parties do is unethical – but only one of them is illegal.
Yes, it’s unfair. The good news? If you know what you’re doing, you can actually profit from what those with actual influence in the system – like politicians – are doing. Click here to find out more.
Embrace the surge,
Editor, Stock Surge Daily