Hey, Ross here:
Despite a lower open thanks to the Moody’s downgrade, buyers stepped in throughout the day to close slightly higher.
As I said yesterday, it’s a big nothingburger.
For today, let’s look at a chart that shows why there’s still plenty of institutional money on the sidelines.
Chart of the Day
This chart – based on the Bank of America Global Fund Manager Survey – shows how overweight or underweight global fund managers are on US stocks.
As the chart shows, they’ve been underweight US stocks for the past few months.
And even after the blistering recovery we’ve seen in the past month…
Fund managers are still underweight US stocks in May.
In other words, there’s still plenty of institutional money sitting on the sidelines.
Insight of the Day
Money on the sidelines = room for the rally to run.
Despite the strength of this rally, the data still shows plenty of institutional money – the real market movers – sitting on the sidelines.
They can’t stay there forever.
Remember, institutional investors are investing other people’s money – and they’re ultimately answerable to them.
As they watch the blazing rally in US stocks, they’re going to feel a lot of pressure to participate (I’ve felt that kind of pressure myself back when I was still on Wall Street).
And when these institutional investors come back in, they’re likely to fuel the rally even more.
That’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to show you a system for targeting the very stocks these institutional investors could be funneling money into.
This system has signaled huge breakout moves like 136% in 4 weeks…77% in 3 weeks… and 87% in just 24 hours.
But with that much of “sideline” institutional money ready to flow in, gains like these could just be the start.
So click here to lock in your seat for my live session if you haven’t yet…
And I’ll see you at 11 a.m. ET.
(Note: In my newsletter yesterday, I mentioned the live session would be at 2 p.m. Eastern. But it’s since been changed to 11 a.m. Eastern. See you there).
Customer Story of the Day
“Ross is a valuable teacher to learn from, patient, honest.
You can learn from TA and develop your own strategy or just follow the buy and sell recommendations and make money. I learn something each week.”
Ross Givens
Editor, Stock Surge Daily
