Hey, Ross here:
To start the new trading week, let’s look at a sector that could be the leader for the next move upward.
Chart of the Day
The 2023 bull market has been powered by the artificial intelligence theme. Super Micro Computer, Palantir, Nvidia, and other big-name AI stocks have been the key driver of gains this year.
When looking at the performance of various sectors this year, this AI theme is crystal clear.
Semiconductors, crypto and software have smoked pretty much everything else since January.
Energy, biotech, banks and solar, on the other hand, have been among the worst performers.
But some of these trends are beginning to shift.
Take crypto, for example – the hot pink line on the chart above. Although prices rose hard in the first few months of the year, they have been declining steadily since June.
The chart below zooms in a little closer to examine performance over just the last 30 days.
Although the solar space continues to be an absolute dog, crypto stocks have joined the party at the back of the bus. Semiconductors have also pulled back a few percent although not much.
Energy, on the other hand, is beginning to emerge and show short-term strength.
The clear winner, however, is software. Not only is this the best-performing group year-to-date, but it has continued to outperform all other areas of the market even during this short-term correction.
The message is clear… software is king.
I’ll be sharing a few actionable trade ideas for this theme over the next few days – so stay tuned.
Insight of the Day
Every market has a “theme” – and being able to identify them is critical for targeting fast profits.
As I showed above, the theme for 2023 has been AI.
But the price action is telling me that the market’s theme may be shifting to software – which is still tangential to AI – and perhaps energy as well.
That’s where I’m focusing my energies right now – looking for the highest-potential stocks in these top-performing sectors.
So, if you want to position yourself in these stocks – right alongside the big institutional investors – before the market makes its next leg up (plus get all these actionable trade ideas days before the rest)…
Make sure you click here to find out how you could do so.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
