Hey, Ross here:
I talk a lot about the “smart money” on this newsletter (and for good reason).
So for today, let’s look at a textbook example of smart money behavior.
Chart of the Day
If you’ve been reading the headlines lately, you’ve probably seen growing concern around private credit.
Private credit is just lending that happens outside the traditional banking system – usually through private funds making loans directly to companies.
And there are definitely signs of stress.
Some funds have gated or suspended redemptions, meaning investors can’t get their money out when they want.
Others are sitting on loans that are getting harder to refinance as rates stay high and conditions tighten.
That’s why some investors are starting to whisper about a possible credit crunch.
A broad-based credit crunch is when lenders across the economy all start pulling back at once – banks, funds, everyone.
Credit dries up. Borrowing gets harder.
And that can become a real problem fast.
But if that were happening right now, you’d expect banks to be backing away too.
Instead, this chart shows the opposite.
Loan growth at both large and small U.S. banks is still running at a healthy pace.
So rather than an approaching system-wide freeze in credit, what we may be seeing is something very different:
Banks stepping in and buying private loans at distressed prices.
This is classic smart money behavior.
Wait for the weaker players to get flushed out – then swoop in to buy at cheaper prices.
And that leads to a critical question to ask yourself…
Insight of the Day
Critical question to ask yourself – where are investors getting flushed out right now?
It’s easy to spot what’s already been heavily bought.
Just look at the stocks that have gone up the most.
But that doesn’t mean they’re still the best opportunities.
Why?
Because smart money usually doesn’t chase what’s already obvious.
They often do the opposite.
They wait for weak holders to panic out…
Step in while prices are depressed…
And then sell later when the crowd piles back in.
So if all you’re doing is chasing the stocks that already look strong…
You may end up being the person they sell to.
In other words, their exit liquidity.
You don’t want that.
A better question to ask is – where are weak hands being forced out right now?
Because that will tell you where the smart money is going next – instead of where they’ve already been.
That’s why in just a few hours at 11 a.m. Eastern…
I’m going LIVE to show you my proven strategy for tracking where the smart money is heading next…
By looking for the tell-tale signs of investors being flushed out.
I’ll walk you through everything tomorrow…
Including showing you a little indicator I’m using to detect these smart money moves.
Just click here to confirm your free spot if you haven’t already…
And I’ll see you 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
“I started a few months ago and started implementing the simple strategy with $1000 and have seen a return of over $300.
Ross makes trading very understandable and if you follow along you will make money even with the losers.
Probably the best thing you learn is risk management!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
