Hey, Ross here:
Sure, most indexes dipped slightly yesterday – a perfectly normal occurrence after a few days of gains.
But as today’s chart shows…
The market is still very much in offense mode.
Chart of the Day
This chart shows the ratio of the Equal Weight Consumer Discretionary ETF (RSPD) to the Equal Weight Consumer Staples ETF (RSPS).
The Consumer Discretionary sector is considered a traditionally offensive/risk-on sector…
While the Consumer Staples sector is just the opposite.
So the ratio between these two sectors just shows how risk-on the market is.
And as the chart above shows, this ratio has just broken out to new highs…
Showing definitively that the market is still very much in offense mode.
Plus, you’ll notice that I used the equal-weight sector ETFs here, instead of the market cap-weighted ones.
That means it’s not just a few big consumer discretionary stocks outperforming their staple counterparts – it’s all of them.
And it’s not just happening in the larger stocks either – take a look.
This is a 5-year chart of the Small-Cap Discretionary ETF (PSCD) versus the Small-Cap Staples ETF (PSCC).
And as you can see, the ratio has just broken out of a huge multi-year base.
As you may know, small-caps have been massive underperformers relative to their larger counterparts for years.
So to see some of the more risk-on sectors of the small-cap universe breaking out is a great sign that points to more opportunities ahead.
Insight of the Day
Price always moves faster than news
Did you know that, even though the S&P 500 hit a new high a couple days ago…
The ever-popular Magnificent 7 are still trading over 4% beneath their previous highs?
Take a look.
And yet, so much of the financial news space is still being taken up by these names.
On one hand, that’s understandable – the news follows popularity after all.
But on the other hand, this causes people to miss out on major opportunities by chasing last year’s winners…
Because price always moves faster than the news.
And in today’s fast-moving market, this is more the case than ever.
You want to pay less attention to the news – and more attention to the price.
That’s why tomorrow, Friday January 9, at 11 a.m. Eastern…
I’m hosting a special LIVE training session to show you an old-school price-based strategy that’s helped us pick up hundreds-of-percent gains in some of the most volatile and uncertain conditions imaginable.
The best traders in the world have employed this strategy to fantastic success for decades…
And after tomorrow’s training session, you’ll be able to do the same.
This strategy could already have helped you pick up two fast gains of close to 30% in just the past few weeks alone (that’s TEN times better than the market).
But I believe that’s just the beginning.
So click here to reserve your free spot for tomorrow’s special session…
And I’ll see you Friday morning at 11 a.m. ET.
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
“Ross is very honest and makes sure you understand what he is reviewing.
If you ask a question in the chat box, he WILL answer it and review the specific stock answer.
Ross is one of the best to learn from.
Thank you, Ross. I can see why you left Wall Street. You are helping real customers in the real world.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
