A New, Must-Know Technical Level for Stock

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, A New, Must-Know Technical Level for Stocks Yesterday brought even more good news. The CPI was revised lower to 0.2% by the Labor Department’s Bureau of Labor Statistics, a slight drop from the original report of 0.3%. It wasn’t earth-shattering, but it made a strong point that inflation is on its downtrend. Wall Street typically doesn’t pay much attention to revised numbers, but Fed Governor Christopher Waller warned that the 2022 revisions increased the inflation numbers. But this one was a positive revision, though. - “Since some Fed officials were apparently worried about a repeat of last year — when the revision pushed up the monthly changes in core prices in the final few months of last year — the lack of any meaningful change this year, at the margin at least, supports an earlier May rate cut,” said Paul Ashworth, chief North America economist at Capital Economics. Paul Ashworth, chief North America economist at Capital Economics (Photo: LinkedIn) This revision did little to change the market’s rate outlook – the first cut in May along with other four rate cuts later in the year. A new milestone: The S&P 500 hit the $5,000 milestone yesterday on the back of strong earnings season, falling inflation and a robust economy. LPL Financial’s Adam Turnquist believes that $5,000 is a strong psychological area of support or resistance for the market. In other words, it might be the top for a while... or... a new bottom. Moreover, it could spark the FOMO effect where investors pour back into the market in fear of missing out on the future gains. - “A close above this closely watched level will undoubtedly create headlines and further feed fear of missing out (FOMO) emotions,” said Adam Turnquist, chief technical strategist at LPL Financial. “Outside of a potential sentiment boost, round numbers such as 5,000 often provide a psychological area of support or resistance for the market.” Earnings season: Cloudflare soared 21% after reporting strong earnings season. But PepsiCo fell 3% on mixed results. Take-Two Interactive (-7%) and Pinterest (-12%) fell on subpar earnings outlook. Earnings season shows that certain sectors perform spectacularly while others underperform. Technology companies are standout winners – although there are some losers like Snap and Pinterest that struggle with their digital advertising business. A Top “Early-Stage” Play On A Fast-Growing Brand Today’s Stock Pick: Deckers Outdoor ([DECK]( A powerful brand can bring such a phenomenal margin. Deckers holds two powerful brands, and these have been an unbelievable moneymaker for the company. Let’s start with the first one: UGG. You know that name. It is famous for those tan boots that are popular with younger female demographics. The brand is a steady cash cow for Deckers, but it is not the growth story behind Deckers. The new, “hot” brand: Have you heard about HOKA? It is a super-hot brand for Deckers. The brand’s revenue jumped by 21% in the fiscal Q3 versus last year. And it is not slowing down. US search interest grew steadily for more than five years, according to Google Trends. (Photo: Sarah Jackson) And here’s the interesting thing. HOKA recently partnered with luxury brand Moncler to release a limited edition of the HOKA Mafate Speed 2. Can a luxury retailer sell a collaboration with HOKA? Well, the shoes sold out in the first hour of availability. That’s the biggest seal of approval in HOKA’s popularity. Fashion isn’t a top priority for HOKA, as it is focused on athletic wear. But it shows a future opportunity. For example, Nike has endless opportunities with its brands and collaborations. With that ability, the sky is the limit for HOKA. HOKA was also used by long-distance runner Cole Watson who finished first in the Canyons Endurance 100k wearing the HOKA Tecton X carbon plated trail running shoe. The brand of HOKA offers an incredible future for Deckers, and you’d be buying this company at its young stage. Track record of meeting expectations. Deckers set two big goals in its 2018 presentation. It wanted to raise ROIC by 20% and revenue to $2 billion by 2020. Did the company achieve these goals? (Source: Deckers) Deckers blew away the goals with ROE reaching 30% since 2019. As for revenue? It achieved $2.1 billion in 2020. (Source: MacroTrends) What happened after 2020? The growth accelerated to hit the $3 billion mark – or a 50%-plus growth in just three years. They hit above $3.5 billion last year, and you can see its phenomenal growth trajectory since 2017: (Source: MacroTrends) Bottom line: Deckers has two powerful brands – UGG and HOKA. And the second one is the superstar. With its torrid pace of revenue growth, HOKA will be a huge growth driver for the company in the next few years. At its current valuation of 30 P/E, it is a great buy for a high-growth company. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](