Hey, Ross here:
There’s a strange disconnect running through this market right now.
You can see it in the S&P 500.
And once you look at how professional investors are positioned in AI…
It gets even stranger.
Take a look:
Chart of the Day
This compares the regular S&P 500 with the equal-weight version of the index.
The regular S&P gives the biggest companies far more influence.
The equal-weight index treats every stock roughly the same.
Normally, the two move pretty closely together.
Right now, they aren’t.
Their rolling 90-day correlation has dropped to around 0.68…
Close to an all-time low.
So the giant stocks driving the headline S&P are behaving very differently from the average company inside the index.
And that brings us to AI.
Because you’d probably assume the professional funds were loaded up on the stocks behind the market’s biggest theme.
As of Q2, that wasn’t necessarily the case.
Large-cap mutual funds were still underweight a long list of major AI names.
Microsoft. Google. Meta. Broadcom. Micron. Sandisk.
And Nvidia was dramatically underweight.
That’s a pretty unusual picture.
Some of the stocks having the biggest influence on the market were pulling away from the average company…
While many professional funds still weren’t heavily positioned in them.
Of course, those Q2 holdings are backward-looking.
But that’s part of the point.
By the time the positioning becomes obvious in a report like this…
A lot can already have happened in the stock.
And that leads to something I’ve learned to pay very close attention to.
Insight of the Day
The story is often late.
One thing I’ve learned over the years is that the explanation for a big stock move often shows up after the move has already started.
A stock jumps 15% or 20% and suddenly everyone has a reason for it.
New contract. Better demand. Takeover chatter. Whatever.
By then, of course, it all looks obvious.
I’m more interested in what was happening a few days earlier.
Sometimes a stock that had been doing nothing suddenly starts acting differently, even though there’s no headline to explain it yet.
That doesn’t mean I automatically buy it.
But it does make me start digging.
Because if you wait until everyone agrees on the reason, you can end up chasing the move instead of getting in front of it.
And in just a few hours at 11 a.m. Eastern today…
I’m going LIVE to show you one very unusual way I look for those early clues.
It’s an underground signal most traders never think to check.
The strategy is controversial – yet incredibly powerful…
Having previously yielded returns like 287%… 542%… and even 806% – all in a matter of weeks or even days.
I’ll show you how I find the signal…
Which ones I ignore…
And how I use it to spot stocks that may be setting up for an abnormal move before the story catches up.
Click here to guarantee your free seat if you haven’t already…
And I’ll see you LIVE in just a bit at 11 a.m. ET.
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
Android: https://play.google.com/store/search?q=goto&c=apps
Customer Story of the Day
“Traders Agency has a great system. Ross’s training is great and support is there to assist even more.”
Ross Givens
Editor, Stock Surge Daily
