Hey, Ross here:
The indexes just had their best day since May last year.
In particular, we saw a massive “gap up” on the ceasefire news.
And as today’s chart shows…
The specific kind of “gap up” we saw has a way of preceding multi-month rallies.
Let’s take a look.
Chart of the Day
This chart is the S&P500, with the red line being the 200-day moving average.
The 200-day moving average is a critical gauge of the longer-term direction…
Which is why there’s even a famous saying in trading – “nothing good happens below the 200-day average”.
Anyway since the middle of March the S&P 500 has been trading below the 200-day average.
Yesterday, it “gapped up” (meaning it opened above the day before’s closing price) and opened above the 200-day average.
Other than yesterday, we’ve seen this happen twice in the past 2.5 years…
May 2025 and November 2023 – I’ve marked them on the chart above.
Both times marked the beginning of powerful multi-month rallies.
So, could we see the same thing happen now? Perhaps.
But like I said yesterday, the market’s short to medium-term prospects still very much depend on how the situation in the Middle East plays out.
Still, even if the multi-month rally hypothesis doesn’t play out…
There’s still something we can do. I elaborate below.
Insight of the Day
Even if the broad index doesn’t proceed to go into a multi-month rally, there WILL be individual stocks that do
It won’t appear that way to most traders.
And most likely, the stocks that do will NOT be the popular names you read about in the financial news media.
But with thousands of stocks out there…
How do you identify the ones with the best shot of surging into powerful multi-month rallies?
I’m going to share a proven strategy for that tomorrow morning.
In the meantime, I just shot a video on two “fast action” trades you can take right now.
If you missed it when it came out…
Customer Story of the Day
“Ross Givens from Trader’s Agency is an awesome resource to help you with your investing needs and investing education.
I waited about three months to write this review to give myself time to see the impact on my portfolio and I have been completely satisfied.
Ross has a no nonsense, simple approach that makes it easy for all investors and he takes the time to answer all questions on a weekly basis.
Thanks, Ross and Traders Agency!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
