Breadth Breakdown (What to Do About It)

Hey, Ross here:

If you only looked at market breadth right now…

You’d probably want nothing to do with stocks.

And I wouldn’t blame you.

Take a look.

Chart of the Day

Only about one-fourth of S&P 500 stocks are trading above their 50-day moving averages.

That’s ugly.

It means the majority of stocks have already lost their medium-term trends…

Even while the S&P itself is still hanging around its highs.

But here’s where things get more revealing.

This is the equal-weight Technology index.

Every stock gets roughly the same influence here…

So this isn’t Nvidia, Apple or a couple of other giants dragging the whole sector higher.

And it just pushed to a new all-time high.

So while most stocks are struggling…

Technology is still showing real strength across the group.

Now look at the other side:

Utilities and Consumer Staples are two of the classic defensive areas of the market.

And both are sitting around all-time lows relative to the S&P 500.

So investors aren’t exactly running for shelter here.

They’re still rewarding some of the more aggressive parts of the market…

While leaving a lot of defensive stocks behind.

That tells me something.

Insight of the Day

When breadth gets ugly, focus harder on the strength.

Bad breadth doesn’t mean every stock is weak.

It means you have to get more selective.

Right now, most of the market is struggling.

But Technology is still making new highs…

While defensive sectors like Utilities and Staples keep losing ground.

So I’m not spending all day digging through the weakest parts of the market hoping they finally bounce.

I’d rather start where buyers are already showing up.

But finding the right sector is only half the job.

Technology might be strong…

But I still need to know which stocks inside Technology are attracting the biggest buyers – the institutional “smart money”.

And this is where institutions give us an advantage.

A fund trying to put $20 million, $50 million or $100 million into a stock can’t just smash the buy button and be done.

That kind of order would send the price flying.

So they accumulate.

A little today. More tomorrow. More again next week.

And if you know what to look for, you can follow the trails of these “smart money footprints”...

So we can use their money for your profit.

That’s why in just a few hours at 11 a.m. Eastern today…

I’m going LIVE to show you how we track these “smart money footprints”...

How we use them to narrow down potential trades…

And how you can start spotting them yourself.

The strategy I’ll be demonstrating today has a combined 2,615% in gains across 20 open positions.

And it’s also helped uncover moves like:

146% on NuScale Power in 53 days…

206% on Alpine Immune Sciences in 77 days…

And 87% on Nikola in just 24 days.

So click here to lock in your seat for today’s free live training if you haven’t yet…

And I’ll see you 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: apps.apple.com/us/app/goto/id1465614785
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