Hey, Ross here:
Yesterday, we looked at the divergence between short and long timeframes for stock-oil correlations.
Today, let’s look at a couple charts showing the divergence between oil and stock investors.
Chart of the Day
This chart shows the call-put skew on WTI Crude Oil futures.
In short, it shows how many more call options there are on oil (bullish) versus put options (bearish).
Right now, options traders are buying far more calls than puts on oil – even more than during the 2022 energy crisis after the onset of the Ukraine war.
In other words, they’re highly bullish on oil.
Now let’s contrast that with retail investors’ sentiment on stocks right now.
This is the weekly sentiment survey results by the American Association of Individual Investors (AAII).
And as you can see, as of this week – retail bearishness has absolutely surged, with the bears now far outnumbering the bulls.
Based on this, you might think the conclusion would be buy oil and sell stocks, right?
Wrong.
I explain why below.
Insight of the Day
Remember that markets often bottom on bearishness – not bullishness
Almost a year ago, during the tariff selloff – I called almost the exact market bottom.
And the thing that led me to make the call was the sheer level of bearishness I was seeing.
Markets bottom on bearishness – not bullishness. And they often peak on exuberance, not pessimism.
In other words, just because traders are bullish on oil and bearish on stocks doesn’t mean buy oil and sell stocks.
Often it means the opposite.
Now, obviously things are different from last March/April.
Markets may be down a little, yes – but they’re mostly chopping sideways instead of selling off big. So there’s no real “bottom” in that sense.
But the point still stands.
Now may be one of the best times to buy stocks we’ve seen all year.
Of course, we have to be selective.
But I’m already seeing multiple explosive opportunities appear on my radar…
And in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to show you exactly how to target these opportunities…
Using a method that you could have used to be sitting on open gains of 50+% right now…
As well as to bank returns as high as 413% in just 8 months in the past.
Like I said, this method is alerting me to multiple explosive setups even amid this market turbulence…
So don’t miss my live demo later this morning.
Click here to confirm your free spot if you haven’t already…
And I’ll see you in just a bit at 11 a.m. ET sharp. Don’t be late.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
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Customer Story of the Day
“Ross Givens & Traders Agency have helped me learn & identify market patterns with analysis as to WHEN and how to properly enter and exit trades, with profit!
It’s been 6 months so far, and the education has been excellent, with the profitable trades following!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
