Hey, Ross here:
I said in yesterday’s newsletter that I was going to talk about how the market did in January…
But I put that off till today because I just had to address the massive precious metals rout from Friday.
So let’s look at how the markets did in January.
Chart of the Day
Hey, Ross here:
First, a high-level overview.
The S&P 500 was 1.2% and the Nasdaq was up 1% for the month.
That’s decent – but things are actually better than they appear.
The Equal-Weight S&P 500 Index (RSP) was up 2.7% – more than double the S&P 500.
Generally speaking, a positive January is also positive for the rest of the year…
With the data showing that every time the S&P 500 closed higher in January, it closed higher for the year almost 90% of the time.
With that being said, the data also shows that February tends to be a pretty choppy month for the markets…
So don’t be surprised if that continues – especially when we look at the sector-by-sector performance below.
Because as you can see…
The top two leading sectors for the month were Energy and Consumer Discretionary…
Which are traditionally defensive sectors.
Case in point – during the 2022 bear market, energy was the only sector that managed to keep going up.
Now, don’t get me wrong…
I’m not predicting a market crash or major correction or anything of that sort for February…
But with precious metals volatility… Big Tech earnings… a new Fed Chair… and more in play right now…
There are a lot of factors that could lead to a choppy path ahead for February.
Below, I share what I do expect.
Insight of the Day
I expect retail sentiment to quickly switch back to bearish.
The retail bulls have outnumbered the retail bears since December of last year.
Should the market run into a period of choppy action during February…
I fully expect retail sentiment to quickly flip back bearish.
Just like how retail investors poured into precious metals at the top – and got slammed hard last Friday…
Their bullish sentiment is fickle – and will likely quickly reverse at the first sign of a real pullback.
But like I’ve said time and time again…
We need to take these fickle buyers off the map.
They’re the “froth” we need to wipe off.
The smart money knows this all too well.
I’ve watched them to engineer situations that would cause a retail selloff…
And then swoop in to scoop up the assets at lower prices.
It’s nothing new and has been going on for decades now.
The good news is, if you know what you’re looking for…
You can flip the script and take advantage of the smart money instead.
I’ll show you how in just a few hours later this morning at 11 a.m. Eastern…
When I go LIVE to walk you through my strategy for targeting these smart money footprints…
Which will allow you to use their money for your profits.
This strategy could have allowed you to take trades like:
But with the market possibly entering choppy waters…
Even more entry opportunities are heating up.
So don’t miss it – click here to guarantee your free seat if you haven’t yet…
And I’ll see you in just a bit at 11 a.m. ET.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
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Customer Story of the Day
“Ross and his team are very knowledgeable about swing trading successfully, and are honest about how to get there.
Super grateful for Ross’s insight into market activity, I swear the guy doesn’t sleep, constantly providing videos and educating any one who wants to make money in the market!”
Ross Givens
Editor, Stock Surge Daily
