Hey, Ross here:
Markets rose yesterday despite the US’ Iran strike.
As I said in yesterday’s newsletter, most traders would be surprised – and I was right.
Here’s one chart that can help explain why.
Chart of the Day
This is the NFCI – the Chicago Fed’s National Financial Conditions.
I’ve talked about it a couple times before.
It’s basically a measure of how loose or tight monetary conditions are.
The lower the index – the looser monetary conditions are – and the more liquidity (aka money) there is in the financial system.
That’s good for stocks.
And right now, the index is at the lowest levels in over three years.
This is a major factor supporting the healthy price action we’ve been seeing (though of course, Trump’s ceasefire announcement also helped).
But the most important implications for traders are happening below the surface.
I elaborate below.
Insight of the Day
Even if the underlying market stays healthy, we may see a sector rotation happening
As I’ve said before, the thing about looking at the broad data – like the market indexes – is that it’s hard to see what’s happening beneath the surface.
Right now, the underlying market is healthy, and is likely to keep going up (potential short-term turbulence aside).
Yet, the sectors that will lead this leg up are likely to shift.
When big geopolitical or economic events dominate headlines, it almost always leads to a sector rotation.
That’s where you want to hunt for the next big breakouts.
And that’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE for a strategy session to show you which sectors are rising right now…
And even reveal some stocks that are setting up for potentially MAJOR moves as the situation develops.
Don’t miss this.
Click here to guarantee your spot for my live strategy session if you haven’t already…
And I’ll see you in a little bit at 11 a.m. ET.
Remember, uncertainty equals opportunity. Don’t wait for things to “resolve”.
Customer Story of the Day
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Traders Agency is no joke these guys are very smart and a very happy client with them. They have helped me understand why they take a trade and why there is a stop loss.
They explain the math so it is easy to understand. Sometimes in the War Room and Stealth Trade we as clients bring trade we see and they can cover it with us.
Thanks Ross Etrade profile is doing very well.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
