Hey, Ross here:
And here’s a chart that shows just why the current market rally is so exciting.
Chart of the Day
The chart above is for the Equal Weight S&P 500 ETF, which is an ETF that tracks the S&P 500 IF every company on there had equal weight – instead of being weighted by market cap.
In short, the smallest company on the S&P 500 is given the same weight as the largest.
What this index tells us is the breadth of the market – how much are the smaller names actually contributing to the rally?
As you can see for the past couple months, this index has been falling, while the regular S&P 500 has been rising.
This means a lot of the rally was indeed being driven by the big names – participation was low.
But with the weight of the debt ceiling drama no longer around the market’s necks, things appear to have changed.
As you can see in the white circle, the equal-weighted S&P 500 has just broken out strongly – this time in tandem with the regular S&P 500.
This is a good sign that we could see some solid gains in the lesser-known names in the coming weeks.
P.S. Would you like special trade prospects and potential market moves sent directly to your phone? Text the word ross to 74121.
Insight of the Day
The more participants in a rally – the greater the potential profits
When a rally is limited to just the top few mega-cap names, it’s hard to make the fat profits.
That’s because these names are already so big, it’s extremely rare to see huge jumps in their stock prices. Instead, we just get “modest” increases that are enough to pull the entire index up.
But when a rally has broad participation, that means the smaller names are also part of the rally…
And these are the names that can deliver the biggest gains.
That’s why I’m so excited by this rally…
And why I’m going LIVE right now to show you my #1 setup for targeting these home run wins.
Because I can’t wait to show you all the opportunities out there right now that are up for grabs.
Embrace the surge,
Editor, Stock Surge Daily