Hey, Ross here:
The rally continues – but there’s one important thing you need to know about rallies.
Read on to find out what it is.
Chart of the Day
This is the percentage of S&P 500 stocks that are trending above their 50-day moving average.
Just a week ago, this number was sitting at a 52-week low of just above 15%.
As of yesterday’s close, it has nearly tripled to 42.5%.
This just shows you how fast this rally’s pace has been.
You might have noticed however, a slight dip in the chart right at the end.
And yes, the percentage of stocks above their 50-day moving average did dip slightly from Friday’s close to yesterday’s close.
But as I explain in the Insight of the Day, this is nothing to worry about…
Because what happens on the way down also works on the way up.
Insight of the Day
The market often needs time to digest sudden shifts in direction – both on the way up and down.
During the vicious pullback from end-July to end-October, we saw plenty of times where the market largely moved sideways – even though the broader trend was downward.
This is normal – the market needs time to digest sudden shifts in direction…
And this works both on the way up and down.
So, if the rally takes a breather this week – that’s perfectly normal.
I believe the new direction is clear – it’s going up.
Of course, this doesn’t mean just buying into the market willy-nilly – we still need to be strategic about it.
That’s why I’m going LIVE right now…
To show you exactly how to pinpoint the highest-potential stocks with clean price action setups…
So we can squeeze the most juice possible out of this rally.
And let’s ride this rally together.
Embrace the surge,
Editor, Stock Surge Daily