Hey, Ross here:
Market sentiment has been taking an (expected) dip.
Here’s why you shouldn’t pay that much attention.
Chart of the Day
These are the latest results of the American Association of Individual Investors (AAII) weekly market sentiment survey.
As of May 22, 47% of members were bullish on the market – close to the one-year high we saw last December.
But as of Wednesday, May 29 – that percentage has fallen to 39%.
That’s a big dip. And it shows just how fast the broader market sentiment can change.
Is it worrying to see such a big drop in sentiment right after the market has blasted its way out of a pullback.
Not at all – I explain why in the Insight of the Day.
Insight of the Day
The higher the market goes, the more the froth needs to be wiped off.
Pullbacks are necessary to wipe the froth off a hot market.
But sometimes, it takes more than just a single brief pullback to do so. Just look at what happened between August and October last year.
Now, to be clear, I don’t believe we’ll be seeing a repeat of that period.
But I do believe that the market may still need to knock a bit more froth off the top – which it’s been doing over the past few days.
That’s why I’m not concerned with the recent market “weakness” – or even the falling sentiment (which is a lagging indicator anyway).
In fact, I think it’s a great opportunity to pick up the best stocks at better prices.
The best stocks in this case are those with the greatest potential to strongly break out from this pause.
And that potential comes from price-moving catalysts that are specific to each individual stock.
Now, even the most well-informed analysts can’t know what these catalysts are.
But the corporate insiders do…
And in just a few hours at 11 a.m. Eastern later today…
I’m going LIVE for a masterclass that will allow you to position yourself right alongside the best of these insiders.
I’ll reveal:
- Why these insiders are able to handily beat Wall Street’s finest time and time again…
- The 3 counterintuitive insider buying signals even savvy traders miss…
- And my specific method for tracking the best of these insider trades.
I’ll also spotlight a fast-moving opportunity this method just alerted me to…
So, if you haven’t already, make sure you click here to lock in your spot for my live masterclass later…
And my team will send you the login info before it starts.
See you at 11 a.m. ET sharp.
Ross Givens
Editor, Stock Surge Daily
