Hey, Ross here:
And here’s an actionable trade idea to start your day.
Chart of the Day
On Holdings (ONON), the maker of OnCloud tennis shoes, is one of the hottest stocks in the market right now.
It went public in 2021, just in time to get hammered in the bull market.
But shares have come back with a vengeance.
ONON has already doubled this year – and while it’s pulled back over the past few days – it’s still very close to all-time highs.
Notice the textbook consolidation pattern of higher highs and lower lows bumping up against defined resistance.
This is healthy action and exactly what we expect from stocks under institutional accumulation.
We have a little time before this one reports earnings. The announcement is scheduled for a week from Tuesday on May 16th before market open. If I had a profit cushion of at least 10%, I’d probably hold this one through the report.
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
You need to be able to flip the switch from short to long, from bearish to bullish, from defensive to aggressive (and vice versa) in an instant.
As I said yesterday, I believe we are in the early stages of a new secular bull market.
That’s what the data is telling me, which is why you haven’t seen any short trade ideas on this newsletter in a while. I’m still betting bullish.
Could I be wrong? Absolutely (and don’t trust anyone who tells you different).
But here’s what’s important – I’m staying agile. If a recession hits – or the bank crisis somehow spirals out of control – and the market falls again, I’m 100% ready to flip the switch again and adjust my trades for a bearish market.
The “smart money” knows this. It’s why they seem to make money no matter what’s happening in the markets – unlike most retail traders.
That’s why, instead of worrying about the Fed or the economy, I’m leveraging these “smart money” trades – and “using” them to target fast profits. I explain more here.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
