Hey, Ross here:
And as I mentioned yesterday, let’s start the day with a fast actionable trade idea – this time to the short side.
Chart of the Day
Applied Materials (AMAT) has been a strong performer this year, but the stock is showing signs of rolling over.
After failing to find buyers at the previous high, AMAT has collapsed through its 50-day moving average and is now forming a shelf at previous support.
A stock can only hit a level so many times before breaking through. This marks the fifth test of the $135 support area. A lot of people are going to have stop losses here.
If AMAT breaks below this level, watch for its price to fall rapidly.
Insight of the Day
Even though this pullback has lasted over two months – history is on our side.
August and September have historically been some of the weakest months for the market – and it’s no different this year.
The good news is that, based on historical data, we could very well see a fourth-quarter rally.
Both conditions – the S&P 500 down over 1% in August and September while still being up between 10–20% for the year – have been met.
A fourth-quarter rally is extremely possible. History is on our side.
That’s why I’m going LIVE right now to show you my #1 positioning strategy for this potential rally.
So click here to join me in the live room now…
And I’ll show you how to make the most of the remainder of 2023.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
