Hey, Ross here:
Yesterday, we saw what could be the start of some near-term chop – with the markets pulling back a little.
As I said a couple days ago, don’t be surprised if this happens.
Especially because – as today’s chart shows – there’s a likely rotation underway.
Note: This newsletter will be taking a two-day break on July 3 and 4, so we will resume on Monday, July 7.
Chart of the Day
This is an interesting chart – QQQ/DJI.
It’s the ratio of the Nasdaq 100 (QQQ) to the Dow Jones Index (DJI).
The higher it is, the more the Nasdaq 100 – aka the big tech stocks – are leading over the blue chip stocks (the Dow).
The lower it moves, the opposite.
As you can see, the QQQ/DJI ratio has already dipped significantly in the past few days.
And it looks like it’s setting up to fall even more.
That indicates a rotation away from the big tech stocks – which have been the leaders coming out of the April bottom.
And it’s also a source of confusion for many traders.
I explain why below.
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Insight of the Day
Many traders confuse a market rotation with a stalling rally.
I’ve said many times before how traders often confuse healthy pullbacks with the beginnings of a bigger crash.
The same thing happens with sector rotations.
They’re healthy and necessary…
But similarly, traders often confuse them with a rally that’s stalling – or worse.
You see, in a healthy bull market, different sectors take their turns leading it.
That’s the only way it can be sustainable.
If the bull market is to last 6–18 more months, which I believe is highly likely…
Then we’ll be seeing these rotations happen every few months.
If you look back at today’s chart, you can see sharp drops and rebounds in the QQQ/DJI ratio.
This is a source of confusion for traders who don’t know…
And a source of opportunity for traders who do.
And when you combine this rotation with a unique edge that has delivered moves like:
- 102% in 12 days…
- 118% in 2 days…
- 101% in 5 days…
- 207% in 5 days…
- And 519% in 60 days.
You get a major opportunity window that you don’t want to miss.
That’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to demonstrate how this powerful edge works…
And show you exactly how to use it to exploit the current market conditions.
So click here to guarantee your seat for my live strategy session if you haven’t yet…
And I’ll see you soon at 11 a.m. ET sharp.
Customer Story of the Day
“I followed Ross for approximately six months before joining.
In those six months, I honestly could have doubled if not tripled my money invested in stocks, not including what I could have banked with options.
Ross, as well as his staff, are pleasant and convenient regarding communication, but most important, they are knowledgeable and experienced.
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I’m a member of two platforms (insiders and fire) looking at a third (alpha). T.A. is definitely worth the investment, as I am continually capitalizing on their recommendations on entry and exit.
I recommend you follow and see if you could come close to the detailed analysis these platforms provide.”
Ross Givens
Editor, Stock Surge Daily
