Hey friend,
Nothing on the economic calendar today – just a bunch of Fed speeches.
Let’s see how markets have been moving.
The Daily Direction
Note: All indexes closed higher yesterday and opened higher this morning as well – sending multiple index directions back upward.
The Daily Nugget
“Informed investors who understand price action are on the lookout for evidence of price shakeouts before they buy.”
~Mark Minervini
Understanding price action is understanding investor psychology.
Price shakeouts happen when investors start taking profits are a runup – causing a sideways consolidation to take place.
The price also often dips during this period.
But once this shakeout is over – the weak hands are gone…
Only the strong hands remain…
And new buyers willing to enter at higher prices come in – kicking off the next stage of the rally.
Right now, the entire market has been in a months-long consolidation period.
But that’s not what we want to be paying attention to.
This is a common mistake traders make.
Because you can’t “shake” people out of the broader market – it’s simply too big.
Instead, we want to focus on this shakeout pattern in individual stocks.
And Head Trader Ross Givens just spotted this pattern in two little-known stocks…
Stocks that he believes could potentially surge 50% even in this flat market.
The Traders Agency Team
