Buying hot stocks in hot sectors is something we’ve talked about before.
And it will never be a bad idea.
Even in a market that has bad breadth, hot stocks in hot sectors is a great way to find trades.
What is “bad breadth”?
It’s when the overall market is up but many of the stocks in that market are down. This happened in 2021 (the majority were bearish but the market was up) and it’s happening now. Only a few big winners are moving the market.
But those few winners will show up where?
In a hot sector.
Overall, AI and tech have been putting up big gains in 2023. DoubleVerify Holdings, Inc. (DV) fits under that umbrella.
It’s been on a nice run since January.
And it’s in one of the top ten hottest sectors in the world.
And it’s above its long-term MA.
And it’s just broken out:
A break above $32.45 was a trigger. It’s slightly above that now.
This breakout could be the beginning of an upward move.
Happy trading,
Scott
