Here is how Generac ($GNRC) is generating profits – July 26, 2023
This is Dan and I just want to look at Generac ( NYSE: GNRC ) here.
First of all, the Fed did what everybody expected it to do, it raised by 25 basis points, and we really do just have a muted reaction here. The Dow 30 ( INDEXDJX: .DJI ); this will be the 13th day in a row if it holds, that this has closed up. I don’t really find that to be noteworthy.
What matters is, just the strength of this index in general. It gives us a better takeaway for the entire market, like, where are we? The Transportations ( BATS: IYT ) are up. Dow Industrials ( INDEXDJX: .DJI ) are up, the SPY ( NYSEARCA: SPY ) is up, the Mid-Caps ( NYSEARCA: MDY ) are up, the Small-Caps ( NYSEARCA: IWM ) are up.
You could say the laggard here, for today anyway, is the Nasdaq 100 ( INDEXNASDAQ: NDX ). But essentially, all of this stuff is doing really well. That is kind of the overview for me.
But the stock I wanted to mention is Generac ( NYSE: GNRC ) Now, one of our more prominent traders in our trading room, Barry, had mentioned earlier today about buying some stock and I really like it.
When this thing broke above 150.00, that is kind of a key level. And, significantly, the other level that you really want to look at here. The high here is 152.13, so we just make this at 152.13, and this is really where, as they say, the rubber meets the road. So the high here, so far, is 152.00.
This is now right at the level that this peaked at last month. And so I think this is kind of a key day to be watching. I would suggest watching this stock tomorrow to see how it works. And if it starts trading above this level, my feeling is, you can go ahead and buy this stock there. And then you give it about 4 percent room.
If it breaks out above here, I wouldn’t put my stop any tighter than at today’s intraday low of 146.55, you can’t have it any tighter than that. The likely hood of getting stopped out is pretty high. But if you just put it maybe a little bit below 145.00.
That gets your foot in the door for, if the stock does move higher, and then at the same time it covers you against any kind of a meaningful loss. Also, be mindful that this company reports in a week. In that respect, it is a short-term trade, but longer-term you have got to look at this base and just love it.
So Generac ( NYSE: GNRC ) is generating profits, sorry, I couldn’t resist that pun.
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