Caution Warranted
Hey, Ross here! The S&P 500 has slipped below a key support level for the first time since the election, raising questions about where the market heads next. While it could easily bounce back, the lowest percentage of stocks above their 50-day moving averages since April signals caution. With inflation data on the horizon, the next few days will be pivotal. My counterintuitive approach to navigating this uncertainty? I lay it all out in today’s Insight.
Is It Time to Strike?
Hey, Ross here! Bearish sentiment among individual investors hit 37.4% last Wednesday, a level we haven’t seen since October 2023—just before a massive market rally. This pattern of rebounds following peak bearishness has been a hallmark of this bull market. There are no guarantees, but as I mentioned yesterday, a swift recovery could be in the cards. The big question: is now the moment to act? I dive into the details in today’s Insight.
How to Take Advantage of “Fearful” Investors
Hey, Ross here! Investor sentiment, as shown in this chart, is sitting near the lower end of its typical bull market range. Historically, this has been a precursor to significant rallies—just like the explosive one we saw in November 2023. But before you get too excited, there’s an important caveat to consider. I break it all down in today’s Insight of the Day.
Is a Market Correction in the Cards?
Hey, Ross here! The S&P 500 is looking more top-heavy than it has in over a decade, and this chart makes it crystal clear. The ratio between the Equal-Weighted S&P 500 Index (RSP) and the regular S&P 500 shows just how much the largest companies dominate right now. But here’s the good news: we’ve been here before, and it hasn’t stopped us from making profits. Don’t let the chatter about “weak participation” scare you off. This rebound still holds opportunity—I explain why in today’s Insight.
Don’t Let This Flush You Out
Hey, Ross here! The S&P 500 is looking more top-heavy than it has in over a decade, and this chart makes it crystal clear. The ratio between the Equal-Weighted S&P 500 Index (RSP) and the regular S&P 500 shows just how much the largest companies dominate right now. But here’s the good news: we’ve been here before, and it hasn’t stopped us from making profits. Don’t let the chatter about “weak participation” scare you off. This rebound still holds opportunity—I explain why in today’s Insight.
Are You Ready for the January Rebound?
Hey, Ross here! The S&P 500 just broke through not one, but two bearish “head-and-shoulders” patterns. The first pattern failed to deliver its bearish signal, and now the second has followed suit—suggesting positive momentum may be returning. While it’s too early to declare a full reversal, the signs are promising. That said, I’m still watching key concerns, like weak participation and the need for a broader rebound. Despite these challenges, this market still offers plenty of opportunity. Let me explain more.
The Formula for Trading Success in 2025
2024 may have ended on a weak note, but 2025 holds the potential for something extraordinary. Could the markets deliver another 20%+ gain this year? The historical performance of the S&P 500 offers some surprising insights—20% gains aren’t as rare as you might think. But here’s the real takeaway: market strength isn’t the only key to success. By combining proven strategies with unique opportunities, like the regulatory shakeups expected under Trump’s leadership, 2025 could become your best trading year yet—regardless of broader market trends.
Will This Bearish Pattern Fail?
Hey, Ross here! The Equal-Weight S&P 500 Index (RSP) just posted a bullish engulfing candle the day after Fed Day, joined by similar patterns in the S&P 500 and Nasdaq. This means the bears started strong, but the bulls completely took over by day’s end—a powerful signal of momentum. Even better, the follow-up price action confirmed the pattern, and this wasn’t just driven by the Magnificent 7—it was broad-based. Plus, key support levels held firm in the S&P 500. These signs all point to healthy price action. I break it down further in today’s Insight of the Day.
What the Latest Price Action Tells Me
Hey, Ross here! The Equal-Weight S&P 500 Index (RSP) just posted a bullish engulfing candle the day after Fed Day, joined by similar patterns in the S&P 500 and Nasdaq. This means the bears started strong, but the bulls completely took over by day’s end—a powerful signal of momentum. Even better, the follow-up price action confirmed the pattern, and this wasn’t just driven by the Magnificent 7—it was broad-based. Plus, key support levels held firm in the S&P 500. These signs all point to healthy price action. I break it down further in today’s Insight of the Day.
Use Seasonality to Your Advantage
Hey, Ross here! The Equal-Weight S&P 500 Index (RSP) just posted a bullish engulfing candle the day after Fed Day, joined by similar patterns in the S&P 500 and Nasdaq. This means the bears started strong, but the bulls completely took over by day’s end—a powerful signal of momentum. Even better, the follow-up price action confirmed the pattern, and this wasn’t just driven by the Magnificent 7—it was broad-based. Plus, key support levels held firm in the S&P 500. These signs all point to healthy price action. I break it down further in today’s Insight of the Day.
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