The US stock market has been running into some challenging days and weeks. And with a lack of a compelling broad reason to buy in general, many stock traders and even stock investors have been filling their heads with fear.
This week, the fear factor is all about the Federal Reserve and its Open Market Committee (FOMC) and when it will slow its bond buying, otherwise known as “tapering.”
Now, I’ve written to you on several occasions that bull or bear markets don’t matter as much for the surge stocks that I present to you inside Traders Daily Direction.
And my Stock Surge Indicator (SSI) system doesn’t care about tapering – only real market data from real stock trades.
In a moment, I’ll show you a surge stock from last week that’s doing exactly what it should be doing – going up – even with tapering fear and market volatility.
It came through with a great SSI score, and now the trading is proving it out.
Of course, each of the surge stocks inside Traders Daily Direction is vetted using the SSI system, which takes market trading data from thousands of stocks and identifies stocks with the top scores.
For those of you that have recently joined us here at Traders Daily Direction, I strongly recommend making sure that you are up to speed on my SSI system.
You don’t need to know the math or to do the calculations – but you do need to understand how it works and why.
This will empower you to be able to buy into the surge stocks with more confidence.
To get up to speed on my SSI – please download for free and read my special report: The Magic of the Stock Surge Indicator.
Now, on to one of the surge stocks on the way up.
Back to School
Burlington Stores (BURL) runs deeply discounted clothing sales. It is a must visit for families getting ready for back to school – more so for this year.
This was a surge stock on the Watchlist from last week – and it’s working this week.
Folks need to move from sweats and pajamas to actual clothes and jackets and beyond, and this is where the company is set up with the right stuff at low prices.
Sales were terrible last year – as no one needed stuff. Now they do. And the last quarter shows a massive sales surge of 173.6%.
Here is how Burlington scored on the SSI system:
- Surge Score: 87/100
- % Above 52-Week Low: 92.1%
- MFI Reading: 46
- Sales Growth: +174%
- Triple Momentum: YES
Retail stocks are booming, and Burlington is no exception.
Consumers with pockets full of stimulus money and a year-long case of cabin fever are flooding brick-and-mortar stores.
Last quarter, analysts were expecting earnings of $0.83 per share from BURL.
The company earned more than triple that estimate.
Burlington is scheduled to report this quarter’s results next week on Aug. 26, and another blowout number could send shares soaring higher.
Burlington’s shares crossed my buy price of 340.25 and traded up to 347.72 in yesterday’s trading.
Here’s the trading from Aug. 9 through yesterday afternoon.
Again, watch for next week’s earnings report, which should be good and provide for a further surge independent of what the market might be doing right now over its taper discussions.
And remember – keep a stop on Burlington at 320.25 for safety.