Hey, Ross here:
And let’s start off the middle of the trading week with another actionable trade idea – one that is already bearing fruit.
Chart of the Day
Super Micro Computer (SMCI) is a market-leading stock. As a key player in the AI space, Super Micro is currently an institutional favorite.
Shares tripled in 45 days between April and June.
And last week, the stock finally pulled back, dipping to its 21-day moving average. That was a buyable pullback – one I recommended to my paying subscribers last Friday.
Right now, the stock is bouncing off the 21-day moving average to move higher – meaning those who got in last Friday are already seeing profits.
There’s still time to get in though. I would use an 8-10% stop to keep risk tight.
Insight of the Day
Expect higher volatility this week as the big investors rebalance their portfolios.
It’s almost the end of the second quarter of the year.
For retail traders like us, that doesn’t really matter.
But for the big market-moving institutional investors – it matters a lot.
They need to rebalance their asset allocations – and perhaps even juice the numbers a bit to make themselves look better (so they can ask for even fatter bonuses).
So, don’t be surprised if you see higher volatility this week. It’s just the big boys ramping up both their buying and selling.
That’s good news for us though.
This increased institutional buying and selling tends to create numerous opportunities we can exploit as the big boys move in and out of select stocks.
You just have to know how to detect these institutional flows.
Embrace the surge,
Editor, Stock Surge Daily