Hey, Ross here:
Retail investors have been extremely bearish since the start of the tariff announcements in March.
This is despite the market’s “V-shaped” recovery that has put us within just a few percentage points of previous highs.
But as the latest data shows – the bears are in retreat.
Chart of the Day
These are the latest results of the latest weekly survey conducted by the American Association of Individual Investors (AAII).
As of yesterday, the bears appear to clearly be in retreat.
Last week, the bears significantly outnumbered the bulls.
Even though markets dipped slightly yesterday, the situation has reversed.
We’ve been getting some positive newsflow – trade deals with China, cooler-than-expected inflation.
And the price action has been simply too positive to ignore – posting a textbook breakout from a sideways consolidation period that occurred right after a steep rally.
But the fact that sentiment only flipped more bullish this week proves what I’ve been hammering home for months.
I explain more below.
Insight of the Day
Price action is the leader, sentiment is the follower.
The gap between the constructive price action and the sentiment indicators prove it.
Sentiment always lags behind price action.
That’s why turning points in the market – both tops and bottoms – often come at moments of peak bullishness or bearishness.
Now, if you’ve been reading this newsletter for a while, you’ve probably heard me say this already.
But exploiting this price action-sentiment gap is easier said than done.
When sentiment is at its peak, getting yourself to do the complete opposite is not easy. It takes incredible emotional discipline.
That’s why 90% of retail traders lose money.
It’s actually much simpler to just follow a superior edge rather than trying to “will” yourself to go against sentiment.
And in honor of Father’s Day…
You can get a full year of my flagship Stealth Trades service for just 99 cents.
That’s a full year of LIVE weekly sessions, where I break down the markets and highlight my favorite setups (these sessions are pure value, with zero sales pitch whatsoever).
Plus you’ll also get the name of my favorite AI “Savior Stock”.
It’s my #1 stock in a sector that I believe is absolutely critical to keeping the AI revolution going.
It’s all yours for less than the change you can find in your couch cushions.
But this promotion disappears soon – so click here to grab it now.
Customer Story of the Day
“Attended my first Stealth Trade Monday Morning webinar and was impressed with the amount of analysis and time Ross took to teach on fundamentals of the stocks pricing movements and resistance/support levels for moves and buying opportunities.
I could not attend live so I watched a replay so I could not ask questions but liked how he took questions and provided quality answers.
Also appreciated him taking time to go over the overall market trends and the top 3 hot sectors and why they were leading the market with the top stocks leading them.
Definitely see the educational value of attending these sessions with him and will continue to do so.
I appreciate this type of approach to share knowledge and tips to help me learn versus just providing stock picks with entry/exit pricing.
Thank you Ross and team.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
