Hey, Ross here:
Markets didn’t move much yesterday as investors await the latest inflation data.
So let’s look at a clue from the options market to help gauge what traders are thinking.
Chart of the Day
This chart shows how much it costs right now to hedge against a 10% drop in the S&P 500.
The greater the demand for this downside hedge, the higher the cost of buying this downside.
And right now, the cost of this downside protection is the highest it’s been since October 2023 – at the bottom of the pullback.
Of course, this downside protection turned out to be unnecessary last October as the market surged powerfully right after.
That might not be the case this time around.
So the question is – is it still smart to buy the dip?
Insight of the Day
The higher the uncertainty, the more strategic you need to be in your dip buying.
Last October, even longer-term investors who bought the dip via index funds did very well as the entire market rallied.
This may not be the case this time around – meaning we need to be much more strategic in our dip buying.
And one of the most strategic ways I know to buy the dip…
Is by following the trail of the corporate insiders – high-ranking executives exploiting an SEC loophole to legally trade their own company stock.
This strategy works particularly well during earnings season – which is set to end very soon.
So, before the “earnings season window” closes…
Make sure you join me for my LIVE masterclass on this insider strategy later this morning at 11 a.m. Eastern.
One stock this strategy detected at the end of July had been falling for months – then shot up 50% in just 5 days shortly after the insiders bought.
And gains like these could just be the beginning.
So, if you haven’t done so yet, make sure you click here to lock in your spot for my LIVE insider masterclass later…
Where I’ll show you:
- How to access the database containing the records of all these insider trades…
- The subtle yet dangerous mistakes traders make when trying to follow these insiders…
- And the 3 counterintuitive insider buying signals you must know about.
The login details will be in your inbox shortly – please try to login earlier if you can.
See you at 11 a.m. ET.
Ross Givens
Editor, Stock Surge Daily
