Hey, Ross here:
And let’s look at a type of trade idea we haven’t seen in a while.
Chart of the Day
Hims & Hers Health (HIMS) is a potential short trade that could deliver a nice gain if the market pulls back. I am still focused on buying opportunities, but it never hurts to be prepared for the other side.
Some of you may remember this as a stock I was looking to buy a couple months ago.
Oftentimes, the best short ideas come from stocks on my long watchlist that fail.
HIMS tripled from October to April but began rolling over after a poor earnings report at the beginning of May.
Not only did the stock fall on above-average volume, but even a 33% discount has failed to attract buyers.
HIMS has formed a support shelf near the $8 level. A move below that would trigger a lot of stops, making it an ideal place to sell the stock short.
Insight of the Day
Despite what you may think, there’s still PLENTY of bearish sentiment in the market – which creates opportunity.
I’ve been banging the table about the new bull market since the beginning of the year.
And given the market’s bear-crushing performance this year, you would think that bullish sentiment currently predominates – that all the bears have been flushed out entirely.
Well, you would be wrong.
Take a look at Wall Street’s year-end price targets for the S&P 500 (which have already been revised after the market’s strong first half performance).
Notice how most of them are STILL below the S&P 500’s current level of 4,567?
This means most strategists still think the market will go down this year – proving that there’s plenty of bearish sentiment left.
For me, this is good news…
Because with good positioning, we can profit as these bears get flushed out.
My flagship strategy is perfect for doing this, as it relies on getting in just when the market is consolidating – aka shaking out the bears – right before the big move higher.
On top of that, we’re also using the big institutional money – of which there are trillions still sitting on the sidelines – to time our entries and ride stocks higher.
That’s why I believe the best opportunities for 2023 are still to come.
So if you want to profit from the bears with this strategy, make sure you click here to find out exactly how to do that.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
