Hey, Ross here:
It’s the start of a new trading week. And if the market’s decline last week has you worried – make sure you don’t miss this one.
Chart of the Day
Last week played out about as expected. I had already noted that the rally had gotten a bit extended, and was expecting a slight pullback as the market digested this move upward.
That’s exactly what we saw. The S&P 500 index pulled back a few percent this week into its 21-day moving average.
This is both normal and healthy.
Remember that stocks do not go straight up. Even in a bull market, there will be retracements and consolidations along the way.
This is where the advances are digested. Investors take profits on the way, clearing the way for a further advance. Otherwise, a market will become overvalued, and the pent-up selling will eventually wreak havoc in the form of a violent selloff.
These pullbacks are opportunities to buy strong stocks – those that had been in clear uptrends and were showing respect for their moving averages.
I’ll share some high-potential plays I’m looking at in this market starting tomorrow – stay tuned.
P.S. If you want special trade prospects and potential market moves sent directly to your phone from me – just text the word ross to 74121.
Insight of the Day
More and more investors are finally realizing that betting on individual stocks is the smart way to play this market.
Here’s a Wall Street Journal headline from December.
This is from yesterday, where the Journal reported that investors have pulled $31 billion out of US mutual funds and ETFs – with a lot of those funds flowing toward individual stocks.
After years of pushing the passive investment narrative, it’s great to see the financial media acknowledge that targeting individual stocks – instead of lazily buying into the entire market – can be the optimal strategy in markets like these.
The narrative is finally shifting.
But here’s the thing – the “smart money” has been doing this for years. They’re not getting paid to sit around and passively dump their clients’ money into index funds. No, they’re also targeting individual stocks.
And when they make their move, the sheer volume of capital at their disposal can send these stocks flying. If you want to know how you could get in on these stocks right before they do – make sure you watch this.
Embrace the surge,
Ross Givens
