Hey, Ross here:
Let’s look at another chart that continues to support my thesis that a short-term market bounce is just beginning.
Chart of the Day
This is the U.S. Dollar Index about to break below support.
While many “gurus” out there love to bandy about the “death of the dollar” narrative, the truth is the U.S. dollar is still king.
And in general – at least over the short term – a stronger dollar has a negative impact on the stock market.
You can see it clearly by looking at when the dollar index started rising – at the end of July, right when the major pullback began.
But that upward momentum looks to be reversing – and that’s good news for the stock market in the near term.
Like I said, I believe we’re in the early stages of a short-term bounce, and this chart only lends further evidence to that.
Insight of the Day
If you know how to manage your risk properly, there is nothing wrong with timing the market.
I believe that, even though we are starting a short-term market bounce right now, we still need one final flush lower before the bull market can truly resume.
In other words, I believe the stock market needs to actually fall below the lows of this pullback, which happened earlier this month.
And yet, I’m still recommending taking advantage of this bounce and pad out your account while you still can.
Yes, that is timing the market.
But there’s nothing wrong with that if you know how to properly manage your risk…
Which in this case means entering trades with tight stop losses and progressively moving them higher on your winning positions, usually with a predetermined profit target as well.
So the next question is, how do you identify the highest-potential stocks amid this market bounce?
Well, I believe the best way to do so is to follow the tracks of the big institutional investors…
Because they’re the ones moving the market and causing this bounce in the first place.
I developed a strategy for tracking their trades during my time working for one of them…
And you can get your hands on this strategy for just a few bucks by clicking here.
But I urge you not to delay – because this bounce won’t last long…
And I don’t want you to miss the opportunity.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
