Hey, Ross here:
The market is still “stuck” – though we’re just a hair’s breadth away from the July highs.
So in the meantime, let’s look at an actionable trade idea to start the day.
Chart of the Day
Trex Company Inc (TREX) looks buyable here as it breaks through the pivot at $69.
TREX is a building products company – specifically decking materials.
Construction and related stocks have surged the last several weeks after Wall Street interpreted the latest Fed meeting as a pivot away from raising rates.
The 10-year bond yield has fallen 0.50% over the last few weeks and mortgage rates have come down with it.
The boom in construction, which has been fueled by a lack of housing supply in the used market, is likely to accelerate further if rates continue falling as many banks currently forecast. TREX will benefit from this trend.
After a structured downtrend in August and September, TREX has ripped higher on big volume.
It now trades above all its moving averages and has another 10% to go before reaching its 52-week highs at $76.
But TREX is well below its all-time highs. Shares traded at $140 in late 2021 – double its current price. So it looks like there appears to be plenty of upside left on this one.
Insight of the Day
With Fed officials starting to question the “higher-for-longer” narrative, we could soon see sentiment flip.
Yesterday, Fed Governor Christopher Waller said there was “no reason” for rates to stay “really high” if inflation continues to consistently cool.
And Chicago Fed President Austan Goolsbee also voiced concerns about keeping rates “too high for too long.”
The Fed has been pretty firm in holding the “higher-for-longer” narrative for the past few months.
But now, that narrative is starting to slip – meaning sentiment could be about to flip bullish.
And that’s an opportunity for us to position ourselves in the stocks that could be about to see a wave of institutional money flood in.
That’s exactly what my Stealth Trades strategy does…
And you can still get it for just 99 cents by clicking here.
But tomorrow is December – and then this offer is off the table.
So click here to grab it while you still can…
And start December off on the right foot.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
