Hey, Ross here:
And let’s start the day with an interesting chart pointing toward Treasury yields coming down soon – which could be a boon for stocks.
Chart of the Day
The 10-year US Treasury yield now stands at 4.34% – the highest since November of 2007.
This means if you were to go out and buy a 10-year Treasury bond now, you would receive a yield of 4.34% based on the price you would have paid.
That’s an attractive yield – much more attractive than many stocks, especially once you factor in the fact that US Treasuries are considered practically risk-free assets.
That’s why rising Treasury yields are generally considered to be negative for stocks.
So it’s no coincidence that as this pullback has been deepening, Treasury yields have been concurrently rising as well.
And the good news is that, as you can see from the above chart, the 2-year US Treasury yield – which is somewhat of a leading indicator for the 10-year yield – appears to be trending lower.
If 10-year yields start following suit, that could signal the start of the next uptrend in stocks.
Stay ready.
Insight of the Day
Stocks that manage to surge in the middle of a market pullback usually do so for specific, individual reasons.
If you look at the list of stocks that have made big gains in the past few weeks – even as the market was pulling back – you’ll find a lot of biotech names there.
Why? Because one of the biggest reasons biotech names pop is them releasing positive news about clinical trials and other product developments.
These are all reasons that are specific and individual to a particular stock – and they were powerful enough to defy the larger market trend.
That’s what we want to be looking for in this market pullback.
But to do that, we’ll need an informational advantage so we can suss out these potential reasons ahead of time.
I’ve developed a strategy that could give you that advantage – and use it to target big ten-bagger type of gains.
And I’m going LIVE right now to demonstrate this strategy in person…
So click here to join me in the live room now…
And I’ll see you inside.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
