The Sentiment Divergence Opportunity
Hey, Ross here! In today’s chart, the green line shows bullish sentiment among individual investors, while the red line shows the same for institutional investors. Right now, institutional investors—the so-called “smart money”—are growing more bullish, even as individual investors turn bearish. The question is: who would you trust? In the Insight of the Day, I dive into what this sentiment shift means for us.
Position Yourself Now for This Kind of Bull Market
Hey, Ross here! Historically, the last six months should’ve been rough for the markets, but this bull market had other plans. Now, we’re heading into the year’s strongest six-month period. Does this guarantee an even bigger market rally? Of course not—there are no certainties in trading, only probabilities. And as I lay out today, the odds are looking pretty good.
I’m Loving How Pessimistic Investors Are
Hey, Ross here! The Citigroup Economic Surprise Index tracks how actual economic results measure up against forecasts. Right now, it’s at a six-month high, meaning economic data is coming in much stronger than expected. Most people are underestimating the economy’s strength—likely because of election-driven pessimism. But as I explain today, this overly negative sentiment actually presents a great opportunity.
More Evidence of a Pullback Opportunity
Hey, Ross here! This week’s sentiment indicator from the American Association of Individual Investors (AAII) shows a sharp dip in bullish sentiment, now at one of the lowest levels all year. While this might seem like an overreaction—likely influenced by the upcoming election—there’s good news. When individual investors overreact like this, it often creates opportunities. I explain why below.
Another Pullback Opportunity Approaching?
Hey, Ross here! Today’s chart shows the percentage of stocks trading above their 50-day moving average, a key indicator of the market’s medium-term trend. Right now, that percentage is dipping sharply. But if you look closely, similar dips earlier this year turned out to be great buying opportunities. Is it guaranteed to happen again? No. But the odds are in our favor. Don’t miss out while you still can.
The American Powerhouse
Hey, Ross here! One of the best things about the American stock market is its openness. Investors worldwide can—and do—invest here, adding to its strength. Today’s chart shows that international investors are flocking to our market, and this demand is fueling the bull market’s momentum. That’s why I believe we have a lot more room to run. Keep riding the bull.
I’m Seeing BIG Bets on Small-Cap Stocks
Hey, Ross here! Today’s chart reveals how large speculators—the big money—are positioned in the futures of the small-cap Russell 2000. Without diving into futures contracts, the key takeaway is that the more these traders buy, the more bullish they are. Right now, they’re the most bullish on small-caps in nearly four years. This is a major opportunity, and you don’t want to miss out.
More Evidence of Strength
Hey, Ross here! The S&P 500 has surged 38% since May 2021—before the 2022 bear market. But here’s the kicker: based on price-to-earnings ratios, it’s actually 19% cheaper now than it was back then. The bears won’t mention that when they claim the market is “overvalued.” Ignore them, and you risk missing out on the upside.
What They’re Not Telling You About the Bull Market
Hey, Ross here! The S&P 500 has surged 38% since May 2021—before the 2022 bear market. But here’s the kicker: based on price-to-earnings ratios, it’s actually 19% cheaper now than it was back then. The bears won’t mention that when they claim the market is “overvalued.” Ignore them, and you risk missing out on the upside.
This is What Keeps Bull Markets Going
Hey, Ross here! Today’s chart shows the latest results from Bank of America’s monthly Fund Manager Survey. And guess what? Institutional money is ramping up stock investments this month, signaling a growing bullish sentiment. The big players are turning up the money flow, and that’s a key sign of confidence in the market. The real question is—will you be ready to capitalize on it? Don’t miss out.
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