Hey, Ross here:
Welcome back to a new trading week.
Let’s start the week with a chart that shows how this rotation into small-caps could just be getting started.
Chart of the Day
This chart shows how the small-cap Russell 2000 index has been performing relative to the large-cap S&P 500 for the past 3 years or so.
The steady decline you’re seeing in the chart shows that small-caps have been lagging their large-cap counterparts for years.
But the current rotation appears to have reversed that trend.
In fact, this rotation appears to have broken past the declining trend line – which suggests that it will likely continue.
Of course, like anything in the market, there are no guarantees. But the odds are that it will.
And that’s an opportunity we should not miss…
Because as I explain in the Insight of the Day below – there’s only one thing that could be causing this sustained rotation.
Insight of the Day
The only thing that is keeping this rotation going are the big buyers abandoning large-cap stocks and pouring into small-caps
The fact that we’re seeing both large-cap stocks fall and small-cap stocks rise tell us one thing…
The big buyers are taking profits in their large-cap tech positions – and moving their capital into small-caps.
I’ve been saying this would happen for a while.
Large-cap tech stocks have gotten too overextended, and profit taking is natural.
But because these institutional investors still want returns, they need to redeploy that capital elsewhere. They can’t just have it sitting in cash.
That “elsewhere” appears to be small-cap stocks.
And with the Fed possibly taking a dovish tone after its meeting this week, we could see even more buyers flocking to these stocks.
That’s why tomorrow morning at 11 a.m. Eastern…
I’m going LIVE for a masterclass that will show you how to take maximum advantage of the small-cap rotation…
By using my “buying pressure” indicator to position yourself in the exact stocks these institutional buyers are also targeting.
One stock this indicator pinpointed in end-May took off by 135% just a couple months later…
But with the rotation ramping up – plus the Fed meeting this week – this could just be the start.
So make sure you click here to register for my live masterclass tomorrow, where I’ll show you:
- How to detect when buying pressure is building up in a specific stock…
- Why most traders are blind to this buildup of pressure (and miss out on big gains)…
- And how to use my “PSI Gauge” to determine the exact point to jump into one of these “pressurized” stocks for maximum gains.
My team will send you the login details tomorrow morning before the masterclass starts.
Don’t wait for the Fed to act.
See you Tuesday at 11 a.m. ET.
Customer Story of the Day
“Well I had a slow start not their fault, my fault, then I picked up what I could when I could. I did pretty good on the sidelines just watching and pretty much did what they did. Just ready to get some time off so I can really get into it if I can.
If I made what I made so far just barely knowing anything I’m kind of curious of what I can do if I really get into it”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily