# History Is On Our Side

Canonical: https://stocksurgedaily.com/history-is-on-our-side/

Hey, Ross here:

And as I mentioned yesterday, let’s start the day with a fast actionable trade idea – this time to the short side.

**Chart of the Day**

![](https://lh3.googleusercontent.com/SRb8gCW3JjirHcLOcOwe8nuPb3-Y9DbJfZiqqOP5hRjZ5sKpCGCQZnEZY-kNmJx4r99rKI5uvSb_AlJ4DJltJpl3QNGrBmgcK-lUqK_njdPSl2s9GkkHESDlMtqWWjTgpsWt-Eebhdak_vTQj8Wmpzk)

Applied Materials (AMAT) has been a strong performer this year, but the stock is showing signs of rolling over.

After failing to find buyers at the previous high, AMAT has collapsed through its 50-day moving average and is now forming a shelf at previous support.

A stock can only hit a level so many times before breaking through. This marks the fifth test of the $135 support area. A lot of people are going to have stop losses here.

If AMAT breaks below this level, watch for its price to fall rapidly.

**Insight of the Day**

**Even though this pullback has lasted over two months – history is on our side**.

August and September have historically been some of the weakest months for the market – and it’s no different this year.

The good news is that, based on historical data, we could very well see a fourth-quarter rally.

![](https://lh6.googleusercontent.com/Y7O2vWPsWKkoQwntyUic2i11Vg_e94FMxqpuizy0p_zhvToKhsNMGv0CqhW3w1LxNq2QdGUubr8hoHAD3LY5cdj5r-EihbRM66vz5XYOlmczpkka9WOo80HKZ0_f4NbudRgtpgy2isr2_smJB-UZ1AY)

![](https://lh5.googleusercontent.com/Qd_-RQ7FZqK33jCtRMECYA5qQrrhOXV-TCQTBDtSSW05geXRP2p3jjOjCAL9E3BW8kOVfccbxJ6jJo1ju4X3N9bQ4cLoXGeS3w0DQ3QS60xHS1LGf8rpWh3kmoSNlzvHaVsMKjnSLlxz9SGh4tuRktA)

Both conditions – the S&P 500 down over 1% in August and September while still being up between 10–20% for the year – have been met.

A fourth-quarter rally is extremely possible. History is on our side.

That’s why I’m going LIVE right now to show you my #1 positioning strategy for this potential rally.

**[So click here to join me in the live room now…](https://clktrac.com/JoinRoss)**

And I’ll show you how to make the most of the remainder of 2023.

Embrace the surge,

![](https://stocksurgedaily.com/wp-content/uploads/2023/05/image.png)

Ross Givens  
Editor, **_Stock Surge Daily_**