Hey, Ross here:
Welcome back to a new trading week.
Most of the time, whenever Fed Chair Powell flaps his lips – the markets dump.
Last Friday, during his speech at Jackson Hole, it was the opposite.
After Powell indicated that conditions “may warrant adjusting our policy stance” (aka, we’re setting the stage for rate cuts), markets surged.
Let’s look at some of the aftereffects.
Chart of the Day
First up is the Equal Weight S&P 500 surging nearly 2% on Friday – breaking out to new all time highs.
Meanwhile, the S&P 500 is still slightly below recent intraday highs.
This means the average S&P 500 stock – the smaller ones – are outperforming the trillion-dollar megacaps.
And it’s not just the S&P 500.
Across the US markets, stocks made the highest level of net new highs this year.
Market breadth readings have also taken a big jump, with the percentage of stocks trading above their 200-day moving average reaching the highest levels this year as well.
Things are looking good.
And it does appear the pullback has been put on hold – at least for now.
But there’s still over three weeks to go till the next Fed meeting.
A pullback absolutely could still happen between now and then.
September is, historically, an even choppier month than August.
Plus, even though Friday was a hugely positive day for the markets…
It also revealed a critical vulnerability.
I explain below.
P.S. My latest edition of 2 Trades in 2 Minutes drops tomorrow. Miss it and miss out. Just text the word “trade” to 87858 and get those trades sent to your mobile the second they’re released.
Insight of the Day
Friday’s big stock surge shows just how much the market has riding on rate cuts.
All Powell had to do was hint at rate cuts, and the entire market surged.
Don’t get me wrong, I’d rather he did that than throw cold water on the rally (like he usually does).
But it also shows just how much of the market is hinging on rate cuts.
Friday’s surge was fueled purely by rate cut expectations…
And should those expectations change – because of inflation data, jobs numbers, or hawkish comments from Fed members…
Don’t be surprised if we see a sudden return of the “canceled” pullback.
That’s the power of expectations.
Most people only know how to follow them…
But smart traders know how to exploit them.
That’s why tomorrow, Tuesday August 26, at 11 a.m. Eastern…
I’m going LIVE to show you my #1 strategy for exploiting the market’s expectations…
This strategy allows you to have more accurate expectations of a stock compared to the general market.
That’s why this strategy could have allowed you to bag wins like 1,090%, 520%, and even 1,787%.
And why it works in both bull and bear markets.
Whether the “rate cut” rally keeps ripping – or we come slamming straight into a pullback…
This is one strategy you can’t afford not to have in your trading toolkit.
So click here to secure your seat for my strategy reveal tomorrow…
And I’ll see you LIVE Tuesday morning at 11 a.m. ET.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
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Customer Story of the Day
“I’m not someone that usually leaves reviews, however, if I could give more stars I absolutely would!
I am currently enrolled in two of their courses.
I knew NOTHING about the stock market when I joined back in March after seeing Ross on The Cartier Family YouTube Channel.
Ross and Jean have rather quickly taught me how to navigate the market. They are so patient with ‘newbies’ like me and have eagerly answered my questions with demonstrations.
I would highly recommend this down to earth and knowledgeable team to anyone that is on the fence about joining.
Just take the leap and watch your wallet grow!”
Ross Givens
Editor, Stock Surge Daily
