Hey, Ross here:
And let’s close out the trading week by looking at what could lie ahead for the market as we progress further into the month.
Chart of the Day
The above chart shows the percentage of stocks that are currently trending above their 50-day moving average.
As of yesterday’s close, that percentage is now standing at 62% – having fallen from nearly 75% just a few days ago.
The sharp decline is pointing toward a pullback in the coming days and weeks – one that could last a little longer than the previous ones.
That said, keep in mind that the 50-day moving average increases in tandem with stock prices, which is why the broader market could keep rising even though the percentage of stocks above the 50-day moving average was as low as 20% this year.
So, don’t take this as some big negative signal about the market as a whole. The new bull market is still intact.
I’m just trying to better calibrate your expectations about what’s likely in store for the month, so you can react calmly and rationally.
Breaking: Big ticket investors are rushing into this $3 “AI wonder stock”
Insight of the Day
The more calibrated your expectations, the greater your opportunity.
The market trades based on expectations.
The more calibrated your expectations can be compared to other investors, the more opportunities you can seize.
For instance, if you expect this pullback to last longer than most, you’ll have the ability to calmly buy into leading stocks at a discount – all while others may be losing faith and selling.
Another example is during earnings season – which is happening right now.
If you can have better information about things that could affect a specific stock’s price ahead of time – information that the market doesn’t expect – you’ll have an incredibly powerful advantage.
That’s why later today at 12 p.m. Eastern, I’m going live to show you a little-known market “loophole” you can use to obtain an informational advantage that will help you target the biggest, fastest winners.
And I’ll see you there at 12 p.m. ET sharp.
Embrace the surge,
Editor, Stock Surge Daily