Hey, Ross here:
Welcome to a new trading week. Here’s a great sign that a rally could be incoming.
Chart of the Day
Finally… progress!
The major indexes all closed at least 3% higher for the week.
The Nasdaq is trading at its highest level since August, and the S&P 500 broke a crucial downtrend to start a new wave higher.
It has now been three weeks since the Silicon Valley bank collapse and the market appears to have digested the news.
The dollar is also weakening which should help propel stocks higher.
I expect to see stocks rally for the next few weeks. Based on previous cycles, this should push SPY up to the 420–430 range.
P.S. Want me to send you special trade prospects and potential market moves directly to your phone? Text the word ross to 74121.
Insight of the Day
Use progressive exposure to safely “test the waters” for incoming rallies.
The current price action tells me a rally is inbound. But if conditions shift, I’ll shift with them.
Right now, I’m fully invested for the first time in over a year.
My plan is to hold these trades until the S&P nears my short-term target – where I’ll begin taking partial profits and/or tightening my stops.
But as always, I’ll let the market dictate my actions.
If the bulk of these trades work well, I’ll continue to press and potentially get even more aggressive by going on margin.
If the net result is a loss, I’ll pull back and step down to 50% exposure.
This concept of “progressive exposure” is something I learned from a 2X US Investing Champion. By increasing your trade size when things are working and decreasing it when they are not, you can maximize gains and minimize losses.
It helps me know when to trade like a chicken and when to be a pig.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
P.S.Want to see which stocks could benefit the most from the incoming rally and potentially deliver fast triple-digit gains? Then make sure you check this out.
