Hey, Ross here:
After another strong week, stocks took a hit in the aftermarket thanks to rating agency Moody’s downgrading the US’ credit rating by one notch.
I’ll talk about why we shouldn’t be worried about this later in this newsletter.
But for now, let’s start the new trading week with a chart that shows why the V-shaped recovery we saw off the April lows…
The one that bears are calling “too fast”…
Is actually just… par for the course.
Chart of the Day
The Nasdaq took just 23 trading days to surge 20% from its bear market low on April 8.
And it’s now less than 5% away from its previous highs.
Already, we’re seeing the usual suspects come out to call this rally “overheated” and “overbought” based on the speed of the recovery.
But as the above chart shows…
Such a “rapid” recovery is actually nothing special.
In past bear markets, the median time it took for the Nasdaq to rise 20% from its bear market bottom was exactly 23 days.
Now, you can obviously see that there are significant variations in the time it takes.
But the fact is – 23 days is bang on right in the center.
So don’t let all the talk about this recovery being “too fast” deter you.
Sure, there will be short-term pullbacks in the future – that’s inevitable.
But that still doesn’t mean this recovery happened too quickly.
Stay focused, and stay in the game.
This is great news for stocks.
Insight of the Day
Minor pullbacks in strong trends are buying opportunities.
If you’ve been following me for a while, then you’ve heard me say something like this before.
But it’s always worth repeating the fundamentals.
In trends as strong as this one, any short-term pullback will likely present a buying opportunity.
And right now, thanks to the Moody’s downgrade – we could see such an opportunity present itself this week.
(By the way, this ratings downgrade is a big nothing burger, remember, this is the ratings agency that gave investment-grade ratings to Lehman Brothers just days before its bankruptcy).
And even if the pullback doesn’t happen right away?
You still want to participate in the rally – because there’s a lot of money still sitting on the sidelines that has yet to come back in.
And tomorrow, Tuesday afternoon, at 2 p.m. Eastern…
I’m going LIVE to demo a strategy that will allow you to take maximum advantage of this blazing trend…
By following the footsteps of the institutional money that is just starting to flow back into the market (I’ll show you just how much is sitting on the sidelines in tomorrow’s newsletter edition).
So click here to save your seat for my live training on Tuesday…
And get ready to ride the incoming institutional wave to the top.
See you tomorrow at 2 p.m. ET.
P.S. If you’re planning to attend on a mobile device, download the presentation app now so you don’t miss anything when it starts.
Customer Story of the Day
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I’ve now been with Traders Agency for over a year now. In this time period my investment profile was a 6 percent return on my own. With their help going over my Etrade profile made it so it reached a 145 percent return in over a year.
Yes you’re using money to invest but, listen to these people and follow their directions you do just fine. My first seven trades with them were a seven percent loss but stuck with and it is life changing. Also other members are just like me and they also put hints out to look into.
Traders Agency is no joke these guys are very smart and a very happy client with them.”
Ross Givens
Editor, Stock Surge Daily
