Hey, Ross here:
Welcome back to a new trading week.
The market-cap weighted indexes are back at all-time highs.
The Equal-Weight Indexes are lagging a bit behind, but it looks almost certain that they’ll catch up.
Especially because, as today’s chart shows…
The smart money is betting on stocks to keep going up.
Chart of the Day
This chart shows how the institutions are positioned in terms of weekly call and put options.
Dark blue bars means more calls than puts, while red bars are more puts than calls.
And as of last week, the institutions are snapping up call options at the fastest pace in well over a year.
In other words, they’re betting on stocks to keep going up.
And they have good reason to.
The National Financial Conditions Index, which is my preferred indicator for market liquidity, shows conditions loosening once again.
Volatility has collapsed – something that has historically led to strong forward returns for stocks.
And over the past 20 years…
Each time the market bounced at least 5% or more on above-average volume following seemingly bad news….
It’s triggered massive rallies in stocks.
Like I’ve said many times before, nothing in the markets is guaranteed.
We can only play the odds.
And right now, the odds say to be selectively bullish.
Insight of the Day
The options market is a rich source of information that most traders overlook.
When most traders think of options…
They think of making leveraged bets, of increasing risk.
Maybe a few will think of options as hedging.
All those are good “options” for using options.
But here’s what even many sophisticated traders miss…
The options market is a rich source of information that can tell you not only where the market is heading…
But even which individual stocks are poised to make surprising, totally unexpected surges.
I believe not 1 in 1000 traders knows about this.
I’ll share exactly how to do that tomorrow – so keep a look out for that.
For today, though, let me ask you a question…
Do you understand how the petrodollar affects everything from stocks to the dollar and economy itself?
Because if you don’t…
Then click here to watch this now.
Customer Story of the Day
“Ross is great at explaining and guiding me through everything he is teaching.
I’m learning more every time I listen to him and I had no experience whatsoever before I began to watch his material.
His team so far has been amazing and very responsive.
Thank you, I’m excited to continue learning.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
