Hey, Ross here:
And let’s start the day by looking at a chart that lends support to my hypothesis that we’re due for a short-term bounce.
Chart of the Day
This is the popular CNN Fear & Greed Index represented in chart form.
Right now, the index is sitting at 26 – bordering on “Extreme Fear”. Just a couple days ago, the index was in “Extreme Fear” territory.
But if you look at the last time the index last touched those levels in October 2022 and March 2023 (red circles on chart)…
You’ll notice the market shot up strongly right after.
Considering the S&P 500 and Nasdaq are still up 11.5% and 27.4%, respectively, this year…
I believe that the market fear is overblown – and this is a signal we’re likely due for a short-term bounce.
Insight of the Day
There are smart ways to play a potential short-term bounce (and not-so-smart ones)
If the market is due for a short-term bounce, the smart way to play it is to take positions in high-potential stocks and progressively move up your stop losses on the winners.
That way, once the bounce is over, and the market starts to come down again…
You’ll still make a nice profit even when it hits your stop losses (cause you’ve moved them up beyond your entry point).
The not-so smart way is to keep holding on to those stocks even after the bounce is over – convincing yourself that they’re “sure” to keep rising.
You want to take the smart way…
To intelligently profit from what is likely only going to be a short-term bounce.
And the best strategy I know for doing that right now…
Editor, Stock Surge Daily