Hey, Ross here:
Hope you had a great Christmas weekend not thinking about stocks, trading profits, and institutional consolidation patterns – but instead spending precious time with your loved ones.
We’ve got just four more trading days left to close out 2023.
And it looks like Santa came through this year – because the bull market marches on.
Chart of the Day
This chart shows the percentage of stocks above their 20, 50, and 200-day moving averages respectively (in other words, their short, medium, and longer-term direction).
Over 80% of stocks are above their 20 and 50-day moving averages, while nearly 65% of stocks are above their 200-day moving average.
This is what a healthy bull market looks like. And this is why I want to buy on pullbacks, not sell.
This is especially clear when we take a closer look at the “big” market news story last week – the sharp down day on Wednesday.
Insight of the Day
Another sign of a strong bull market – investors aggressively buying into any dips
The selloff last Wednesday afternoon caused a 90% down volume day. This is when more than 90% of the trading volume occurs on declining stocks.
We saw several of these during the 2022 bear market. But last Wednesday was the first one we have seen since March.
But markets responded immediately by putting in a 90% UP volume day on Thursday. This is a clear sign that investors are buying into these dips.
We’re still in the middle of one of the biggest short-term rallies in decades. Over the past 36 trading days, the S&P 500 is up 16% and the small-cap Russell 2000 is up 24%
And strong momentum begets more momentum. As Newton says, an object in motion stays in motion.
So the question is – how best to take maximum advantage of this strong momentum?
To answer that question, I’m going LIVE later today at 12 p.m. Eastern for a masterclass in how to spot the strongest momentum stocks – the ones that could deliver the biggest gains in the next few weeks…
By looking for the same “profit triggers” that the best traders in history have used spanning back many decades and market cycles.
This strategy could have had you sitting on a 48% gain in just the past three weeks…
But with the market as hot it is now, I believe this is just the start.
Clear your schedule…
And get ready to make the most out of the last few days of 2023.
Embrace the surge,
Editor, Stock Surge Daily