Chart of the Day: Our Newest Holding Has an Ace in the Hole
This latest addition to the Pro Portfolio is too compelling to pass up, as backed up by the chart.
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The recent rise in the shares SuRo Capital SSSS has been stellar. A nearly 50% gain for this name over the past couple of months has put the stock at or near the highs of the year and late 2024.
We initiated a position in SuRo Capital on Wednesday and have it rated a "Two," or "buy on pullbacks."
One reason for the move higher is the firm's large stake in recent IPO CoreWeave CRWV, which has ripped higher over the last six weeks and has really gone parabolic.
Of course, SuRo has a lockup on shares and cannot yet unload them, but on paper it certainly looks nice. Further, the company has investments in some other companies that plan to go public in the future, some very soon.
The chart is strong; the stock is in a very well-defined uptrend with a series of higher-highs and higher-lows. Money flow is bullish as we see in the bottom pane. The Moving Average Convergence Divergence is also bullish, but overbought, as we can see in the second pane. So, even a pullback would not be a surprise.
But looking at the candles (which are bullish, too) in the top pane, we see the dips being bought. That is important as the big money investors see opportunity. There is good support at the $5.40 level. We'll consider this as well and use any "fortunate" fall into the $5-range as an opportunity to add more shares.
The TheStreet Pro Portfolio is long SSSS.
