Hey, Ross here:
The Fed left rates unchanged yesterday.
Stocks fell anyway.
That is pretty much par for the course on Fed day.
Traders spend weeks waiting for the announcement…
Then start picking apart every word the Fed Chair says afterward.
One phrase sounds too hawkish. Another sounds too cautious.
And the market gets knocked around while everyone tries to figure out what comes next.
But I’m less interested in what the index did for one afternoon.
I want to know what is happening underneath it.
Because right now…
The mood and the market are telling two very different stories.
Chart of the Day
It shows how individual investors expect the stock market to perform over the next six months.
And fear is clearly taking over.
Just 31% of investors are bullish.
Meanwhile, 42.1% expect stocks to fall.
That is a sharp reversal from only two weeks ago, when bullish investors outnumbered bearish investors by a wide margin.
So the Fed held rates steady…
The market pulled back…
And retail investors quickly moved toward the exits.
But now look at this:
This chart compares how many stocks are making new highs against how many are making new lows.
Green bars mean more stocks are pushing higher.
Red bars mean more are breaking down.
And despite yesterday’s market drop…
The latest reading is still positive.
More stocks are moving towards new highs than new lows.
In fact, despite all the market turmoil since June – we have overwhelmingly seen more new highs than lows every day.
That creates a strange split.
Retail investors are preparing for a broad market decline…
While a growing number of individual stocks are still breaking out.
Those stocks are not waiting for investors to feel better.
Something else is pulling them higher.
And that is where I want to look.
Insight of the Day
The strongest stocks have their own reason to move.
The Fed affects every stock.
Interest rates affect every stock.
And when fear rises, investors tend to sell first and ask questions later.
Yet some companies still push towards new highs. Why?
Because a powerful company-specific catalyst can overpower the broader market.
A major contract can bring in a wave of new revenue.
A new product can completely change the growth outlook.
An unexpected turnaround can force Wall Street to rewrite its forecasts.
That creates a stock with its own fuel.
And right now, those are the stocks I would rather own.
I don’t want to depend on the Fed saying the right thing…
Or the entire market suddenly turning bullish again.
I want a company where something is already changing beneath the surface.
For instance – this under-the-radar company right here.
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Regardless of the level of trader that you are, they have you covered.
Services are there for multiple different styles of traders.
Also Ross shares his experience and analysis when it comes to longer term investing as well when he broadcasts live for his members but every time he is asked the question on any other occasion as well.
His teaching style is outstanding and very very easy to understand and remember. I am very grateful to have found them and have recommended them to multiple friends too.
Lots of people love them for the Insider trade alerts and analysis Ross sends out regularly and are exciting news for one’s portfolio but I personally would recommend every single service of the agency as evenly valuable assuming it fits one’s style of trading.
All the best always and forever to Ross and crew.”
Ross Givens
Editor, Stock Surge Daily
