Hey, Ross here:
Another day, another new high.
If you’re surprised – you’re not the only one.
I explain what I mean below.
Chart of the Day
This chart shows the difference in volatility between days when the S&P 500 closes higher and when it closes lower.
A bar above the midline means there’s more volatility on down days compared to up days…
Whereas a bar below the midline means there’s more volatility on up days compared to down days.
As you can see from the chart, the most common outcome is for the former – higher volatility on down days compared to up days.
This isn’t surprising.
But since the Iran war began in March, that pattern has completely flipped.
Now, we’re seeing far more volatility on up days compared to down days.
In other words, this rally has caught lots of people off guard.
Some may look at this and think that’s a bad thing.
That this constant spate of new highs couldn’t possibly keep going on.
I disagree.
First, a look at some historical data.
There have been 13 new highs this year so far – which is actually far below average for a typical up year.
So, unless we see a real and lasting bear market this year…
This rally is likely just the start.
Does that seem a bit too optimistic to you?
If it does, then you need to read the insight below.
Insight of the Day
When it comes to strong bull markets the best view to take is “innocent until proven guilty”
You can get a lot of attention predicting a major market crash.
There are people who have made entire careers calling for a major crash multiple times a year.
But the FACT is that the stock markets tend to go up over time…
And we are more often than not in a bull market rather than a bear market.
Couple that with liberal money printing and deficit spending…
And it means that we should treat all bull markets as “innocent until proven guilty”.
In other words, until you see true price confirmation of a severe downturn…
We should always expect stocks to keep trending up.
Don’t get suckered in by the constant bearish narratives (which naturally appeal to our psychology).
And remember, even if the major indexes are moving sideways…
There are always sectors that are breaking out.
P.S. I just highlighted two stocks that are setting up for parabolic moves in my YouTube video yesterday evening. If you missed it, make sure you click here to catch it now.
Customer Story of the Day
“Ross and the Traders Agency team are trustworthy.
I watched from the sidelines for several months, before joining. My wife was still skeptical after I signed up.
But now, after a month in, she sees the gains I am getting and she’s becoming much more optimistic.
This is important to me, because I have signed up for other services that didn’t work.
Ross’ strategy is the best (and most consistent) I have ever used.
I appreciate his straightforward approach to teaching. He’s clear and easy to understand.
I currently have The Insider Effect and Alpha Stocks. I am looking forward to the future, when I can also sign up for The Black Edge and Fire Traders.
Thank you Traders Agency for helping me and all the other “little guys” out there.”
Ross Givens
Editor, Stock Surge Daily
