Hey, Ross here:
Stock traders rarely look at the bond market, beyond the “standard” 10-year US Treasury yields.
But that’s why they miss out on a lot of clues on what the market’s risk appetite actually is.
Chart of the Day
This is an index that tracks a broad basket of high-yield bonds – aka risky junk bonds.
Junk bonds are a great gauge of the market’s risk appetite, because unlike stocks, bonds can and do go to zero.
If you look at the chart above, you can see that the trajectory of this junk bond index has roughly mirrored that of the stock market, though not precisely.
And as you can see, junk bonds are breaking out of a range they’ve been stuck in since the beginning of the year.
What this tells me is that the market’s risk appetite is growing.
Use that to your advantage.
Insight of the Day
When risk appetite increases, traders like to look for sources of “new” strength.
The greater the risk appetite, the more traders and investors like to look for sources of “new” strength.
Sure, the big popular stocks will benefit…
But the largest gains could be found in the smaller, lesser-known stocks that are breaking out – the sources of “new” strength.
That’s why I’m seeing a spike in insider buying activity as the insiders look to take advantage of the market’s growing risk appetite.
And later this morning at 11 a.m. Eastern…
I’m going LIVE for a masterclass on a strategy that will show you how to take advantage of the insiders.
This strategy identified just an insider trade last Thursday – and the stock shot up 34% in just two days.
And with the market’s risk appetite only growing, this could just be the start.
So, if you haven’t already, click here to “lock in” your spot for my live insider masterclass later this morning…
And get ready to discover:
- How to access the database containing the records of all these insider trades…
- The subtle yet dangerous mistakes traders make when trying to follow these insiders…
- The 3 counterintuitive insider buying signals you must know about…
You’ll get basically everything you need to start using this strategy for yourself.
See you in a bit at 11 a.m. ET.
The login details will be in your inbox shortly – do try to login early if you can.
Customer Story of the Day
“I need an edge, a mentor, someone in my corner with my best interest in mind to teach and advise. Someone willing to have conversations relative to where I am as a trader now.
They can’t teach me everything they know at once, and I don’t expect to win every trade or get rich overnight, but I’m learning and I’m much more comfortable finding and making trades now than I was 6 months ago.
Traders Agency has a wealth of information to share and is sincerely interested in helping people. I sincerely appreciate all they do. Thanks Ross”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
