Hey, Ross here:
Welcome to a new trading week.
Things have been playing out as I expect – but I now believe we have a buying opportunity.
Chart of the Day
Stocks finished lower with major indexes down roughly 2% for the week.
The S&P 500 now trades below its 200-day moving average – a long-term trend level watched heavily by institutional investors.
It appears that our call several weeks ago saying the high was in for the year will likely hold true.
Right now, the market is highly oversold.
I expect to see at least a short-term bounce higher from here as most stops were likely triggered on the move below the 4,200 on SPY.
Many investors are throwing in the towel. This week’s close below support and the 200-day is something overly optimistic bulls did not think we would see.
But I believe we have a buying opportunity here.
My ideal buy point would be around the 4,000 level after a final flush lower. That is roughly 2% below current prices.
Whether we see a new bull market develop from here or simply a near-term tradable rally is yet to be seen.
But I believe there is money to be made over the next several weeks.
Stay tuned.
Insight of the Day
All market rallies – whether sustainable or not – presents opportunities for fast profits.
A sustained market rally is just a bull market.
An unsustained market rally is often called a “bull trap” – but that’s only if you don’t get out in time.
The truth is, you can profit from both types of market rallies if you know what you’re doing.
And with the market now highly oversold…
I’m seeing a rally on the horizon – a rally we can profit from.
Many institutional investors also think the market is now oversold…
And they’ll likely step in here to make some quick gains of their own…
Meaning if you know how to spot their tell-tale trades – and jump in right alongside them in select stocks…
You could pick up a fast buck as you ride these stocks to the top.
And as part of our Halloween special…
There’s no catch – only a fantastic deal.
But don’t wait too long…
Because this rally could be over and done with in a flash…
And if you miss it, you might have to wait months for another opportunity.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
