Hey, Ross here:
As you may know, I won’t be sharing any trade ideas this week as I’m still waiting to see how the market consolidates.
It’s always better not to trade than to take bad trades.
So, for today let’s look at a chart that lends credence to the fact that this new bull market is not a bubble that’s popping – but has some actual legs.
Chart of the Day
This chart shows the level of margin debt – the amount of loans investors take to buy stocks – as a percentage of the S&P 500’s market cap.
Margin debt can inflate a bubble – and you can see it spiking during the 2020–2021 period on the chart.
But for pretty much all of 2023, margin debt has been plummeting – despite the market having staged a major comeback this year.
This is evidence that the bull run this year is not a bubble – but something much more fundamental.
Yes, we are in an extended pullback right now – and it’ll likely last at least a few weeks more.
But the next uptrend is coming.
And when it does, you don’t want to be a “perma-pessimist” only searching for reasons why it won’t last – instead of going out there and making money.
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Insight of the Day
Even if price action is not saying anything, the fundamentals can still point you toward opportunities
Tepid price action is the reason I’m holding off on my breakout strategies for now…
And why I’m focusing on a more fundamentals-based strategy to help my members through this pullback.
Yes, I’m a price action-first trader. But that doesn’t mean that’s the only lens through which I can analyze the market.
What I like most about this strategy is that while everybody studies price action (or at least tries to)…
Only a few know how to find and interpret the specific type of fundamental information this strategy relies on.
I’m going LIVE later this evening at 7 p.m. Eastern to show you this strategy in person.
So click here to save your seat…
And I’ll see you soon.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily