Hey, Ross here:
Welcome to the first full trading week of December.
It’s been a crazy year – so let’s take a quick look back at what’s happened so far.
Chart of the Day
The S&P 500 just saw its second-best November performance since 1980. The index posted a gain of 8.92% for the month.
In fact, the whole market performed well. The Nasdaq rose 10.7%, the Russell 2000 jumped 9.2%, and the Dow tacked on 8.77%.
The rally we predicted in the end-October edition of this newsletter played out beautifully, and those who listened are up big over the last month.
But for the last week or so, stocks have been quiet. We have seen nice gains in a few pockets of the market.
My Alpha stocks service owns a couple crypto stocks (MARA & BTBT) that both soared last Friday, as well as some nuclear stocks with over 20%+ open gains (CCJ & EU). But the general indexes have made minimal progress.
The S&P 500 is now sitting within spitting distance of its high of the year – which I believe we will push through and make new all-time highs in 2024.
But it’s worth comparing the other indexes to see which has more ground to make up and potentially more opportunity.
The above chart shows the three major stock indexes from the March 2020 COVID lows through today.
The S&P 500 is just 5% away from its all-time highs, while the Nasdaq is about 13%.
But the Russell 2000 index, representing small-cap US stocks, has a full 34% to go before reaching new high ground.
Small caps have severely underperformed this year against large cap stocks.
And I believe this is setting up to be a big opportunity for investors.
Insight of the Day
Do not make the mistake of only following the leaders of the past.
The stocks that outperform in the new bull market emerging now will likely be names most have never heard of.
They will be the next Tesla, the next Apple, and the next Microsoft.
So do not make the mistake of only following the leaders of the past.
Keep an eye out for new stocks showing rapid growth with exciting new products or services.
And do not be scared if they are already up several hundred percent. The true leaders will multiply many more times before topping.
The “smart money” institutional investors are constantly trying to target these new market leaders…
Because they know it’s the best chance they have of outperforming the market.
And the good news is if you know how to spot the tell-tale signs of their trades…
You could jump in alongside them – and potentially profit from their money as they bid the price of these stocks up.
After years on Wall Street, I developed a strategy for tracking the secret footsteps of the “smart money”…
Embrace the surge,
Editor, Stock Surge Daily