Surge Stock Indicators

It’s Ross Givens here, with Chart of the Day. arely 50 days ago, the small-cap Russell 2000 index scraped a 52-week low. Fast forward to yesterday, and it triumphantly closed at a 52-week high, accentuated by a significant ‘gap up’ in price action—a telltale sign of robust momentum. Small-cap stocks are orchestrating significant moves, ones you certainly wouldn’t want to overlook. Join me as we dissect the dynamic shifts in the small-cap arena and explore the exciting opportunities unfolding in this market surge.

It’s Ross Givens here, with Chart of the Day. Diving into the inflation-unemployment paradox, the latest chart from Bloomberg reveals a significant moderation in inflation without denting the unemployment rate. While economists will debate the causes, as traders, our focus is on deciphering its implications for the stock market. The potential shift in the Fed’s narrative from ‘higher for longer’ to ‘higher for long enough’ holds promising prospects for us.

It’s Ross Givens here, with Chart of the Day. Six weeks of consecutive wins for the S&P 500, breaking through the 4,600 resistance, and a robust 74% of stocks trading above their 50-day moving average signal a thriving market. Notably, Bitcoin’s strong gains and breakout from consolidation further emphasize a shifting market mood towards ‘risk on.’ As someone who simply follows the market’s cues for opportunities, the current climate decidedly leans against bearish sentiments.

It’s Ross Givens here, with Chart of the Day. Unlocking the pulse of individual investor sentiment, the American Association of Individual Investor’s Sentiment Survey reveals a noteworthy shift. The margin between bullish and bearish sentiments has sharply contracted over the past week, with bearish views climbing from nearly 20% to over 27%. The recent sideways market movement seems to have left its mark. However, in today’s Insight of the Day, I delve into why this shift is not just a mere fluctuation but a positive development with strategic implications.

It’s Ross Givens here, with Chart of the Day. Diving into the intricate dance between the 10-year Treasury yield and the current market rally, a notable trend unfolds. Since its late October peak, the yield has steadily declined, approaching a critical support level. The prospect of sub-4% yields looms, presenting a potentially favorable scenario for stocks. Even as the rally pauses, the continuous downtrend in yields offers a compelling sign. In today’s Insight of the Day, I unravel the dynamics behind this phenomenon, shedding light on why the alignment of declining yields and a market pullback could be a strategic opportunity for savvy investors.

It’s Ross Givens here, with Chart of the Day. Analyzing the pulse of the market, the percentage of stocks trading above their 50-day moving average hit 75% earlier this week, echoing levels seen just before a significant market decline in late July. While I don’t anticipate a repeat of that downturn, a subtle pullback in this percentage raises intriguing possibilities. In today’s Insight of the Day, I unravel the contributing factors and unveil why this pullback presents a unique opportunity.

It’s Ross Givens here, with the first Chart of the Day of December. As we reflect on the S&P 500’s remarkable November, boasting its second-best performance since 1980, the broader market danced to a triumphant tune. However, recent days have seen a calm after the storm, with certain pockets, like my Alpha stocks service featuring crypto gems MARA & BTBT, shining amidst the general index plateau. While the S&P 500 inches towards the year’s high, the Nasdaq trails at 13%, and the Russell 2000, representing small-cap stocks, lags at a striking 34%. This underperformance hints at a substantial opportunity for investors.