Hey, Ross here:
Let’s welcome Wednesday with yet another actionable trade idea.
Chart of the Day
International Game Technology (IGT) just made new 52-week highs.
After a shakeout move in mid-March, the stock completed a textbook cup-with-handle pattern and broke out through resistance at $27.
The 200-day moving average has turned up, and all other key moving averages are trending higher and supporting the stock.
Depending on one’s risk tolerance, IGT could be bought here.
My stop would be at $25.75, just below the 50-day moving average and the recent swing low. That would equate to a risk of 8.4% on the trade.
If IGT pulls back to the $27 area, that would be a great place for a pullback buy or to add on to the position.
P.S. Would you like special trade prospects and potential market moves sent directly to your phone? Text the word ross to 74121.
Insight of the Day
The market’s spotlight shifts quickly.
For seemingly forever, all the markets could focus on was inflation and the Fed. How much more would the Fed keep raising rates to fight inflation?
Then the spotlight shifted to the banking sector after the collapse of Silicon Valley Bank.
And now, with us smack in the middle of earnings season, the spotlight has shifted to what these earnings are saying about the prospects of a coming recession.
In short, the market’s spotlight is fickle. And that shouldn’t be a surprise – after all, attention itself is fickle.
Obviously, what the market is paying attention to is important. As traders, we must be informed of where the market’s broader focus lies.
But in my experience, this also leads to many overlooked opportunities in areas outside the market’s current spotlight.
I’m talking about stocks most mainstream investors have never heard of in sectors too boring for the mainstream news.
This is where the fast-moving opportunities are. And here’s how you can give yourself the best chance at grabbing them.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
