Hey, Ross here:
Market rallies tend to feed on themselves, and today’s chart shows one aspect of how that happens.
Chart of the Day
That’s the total call option volume in the US (reminder: call options allow you to buy a stock at a predetermined price). Yesterday, it spiked to levels not seen since the whole GameStop mania.
This is a sign that traders are very bullish. Now, it does not mean that this is for sure a new longer-term bull market. But it does mean that, at least in the short term, we can expect to see more positive sentiment.
And that’s certainly something we can take advantage of.
P.S. If you want special trade prospects and potential market moves sent directly to your phone – so you don’t miss out on anything – just text the word ross to 74121.
Insight of the Day
Ride the bull – but don’t tie yourself to the saddle.
The Fed confirming the disinflationary process has begun. The current price action. And the massive call option volume we just saw. All these point to a short-term rally that we should take advantage of. We must ride the bull.
At the same time, we must be careful to not get “tied” to it. If the bull shows clear signs of faltering, we must be prepared to jump off. Never forget that the Fed could still kill it with one clean shot if they really want to.
But as the saying goes – get it while the getting’s good. Markets like these are perfect for breakout-style strategies. And one of the highest-percentage ways to spot massive breakouts with triple-digit gain potential is what I call my “MVP Stock Pattern”. Learn how to spot this pattern here.
Embrace the surge,
Ross Givens
