Hey, Ross here:
Yesterday, I showed you why Q3 could be a much more volatile trader’s market.
Not straight up or straight down.
But bigger swings… faster moves… and plenty of opportunities for traders who know how to read the signals correctly.
Which brings me to today’s point:
In Q3, you MUST be a market timer.
Chart of the Day
This chart goes all the way back to the 1830s.
And what it shows is a long-running pattern in the market:
Roughly 15 years where you could get away with just riding the broad trend…
Followed by roughly 15 years where you had better know how to time the market.
Those yellow boxes show the tougher periods – the sideways, choppy ones.
The periods where buy-and-hold investors often got frustrated… while active traders had far more opportunity.
And based on this chart, we may be entering one of those windows again.
That does not mean stocks can’t go higher.
It means the easy “just buy the index and forget about it” phase may be ending.
You will need to be more selective. More tactical.
More willing to move where the opportunity is.
And we’re already seeing why.
Because take a look at this next chart.
The Russell 2000 is having its strongest year in 35 years.
Small caps have been ripping.
Now imagine being stuck only in the S&P 500 while that’s happening.
That’s what I mean by market timing.
It’s not about guessing every little wiggle in the market.
It’s about knowing when leadership is shifting…
Where capital is moving…
And which parts of the market deserve your attention next.
Because in Q3, being in the wrong place at the wrong time could cost you big time.
I explain below.
Insight of the Day
Market timing does NOT mean following the retail crowd.
A lot of traders hear “market timing” and think it means chasing whatever went up last week.
That’s not market timing – that’s performance chasing.
And performance chasing is how you get trapped.
Just look at what’s happening in semiconductors right now.
Retail traders are piling into semiconductor ETFs at a record pace…
Even as momentum has begun to fade.
In short, if you were simply betting on last quarter’s winners to keep winning forever…
Q3 may be rough.
Skilled market timing is about knowing when to press…
When to rotate…
And when to stop chasing yesterday’s hottest trade and start looking for tomorrow’s best opportunity.
I’ll share more on this tomorrow right here in this newsletter…
So make sure you keep an eye out for that.
Customer Story of the Day
“Ross Givens & Traders Agency have helped me learn & identify market patterns with analysis as to WHEN and how to properly enter and exit trades, with profit!
It’s been 6 months so far, and the education has been excellent, with the profitable trades following!”
Ross Givens
Editor, Stock Surge Daily
