Hey, Ross here:
The S&P 500 dropped just 0.4% yesterday.
The Nasdaq actually increased by 0.2%.
But underneath the surface, it was a different story.
Chart of the Day
That’s the Equal-Weight S&P 500 Index (RSP), giving back nearly all its gains for the month yesterday.
Remember, the RSP negates the outsized effect of the megatech stocks – which were the main reason the Nasdaq closed higher.
This means that, for the average S&P 500 stock, yesterday was quite a significant down day.
In fact, 406 of the 500 S&P 500 stocks declined yesterday. That’s over 80% of the index.
Now, is that a cause for major concern?
Not in my book. As I said, I expect this bull market to last for another 6–18 months.
But as I’ve also been saying to expect a short-term pullback.
And even though it may not be visible on the surface…
It looks like this could be the start of it.
What should we do about it?
I explain below.
P.S The market moves fast, and you don’t want to be left behind. Text the word “trade” to 87858 and get this newsletter straight to your mobile.
Insight of the Day
Even though most sectors may be pulling back, not all of them will rebound equally.
Right now, we’re seeing what could be the start of a broad pullback.
This is normal as traders take profits and the weak hands get shaken out.
This is what will set the stage for the next phase of the rally.
But…
Not all of the sectors will perform equally in the rebound.
Some will soar far higher than the rest as the institutions pour in.
A smart move right now is to use this pullback to position yourself in the leading stocks of these sectors.
Yesterday morning, I went live to demo my top strategy that will allow you to do exactly that.
But with most of the market pulling back after my live session…
The strategy I showed is even more applicable today.
So if you missed my demo yesterday – click here to check out the limited-time replay now.
Customer Story of the Day
“Ross is very diligent and thorough in his approach.
He is one of the best with solid information on trading Stocks.
His recommendations are very clear and with high profitability and very limited losses.
I highly recommend Traders Agency to anyone.
I am a member of his Alpha Stocks. Love it.”
Ross Givens
Editor, Stock Surge Daily
