To start the day, let’s look at how a $27 trillion market is performing.
Chart of the Day
This is the Bloomberg US Treasury Index dating back for the past one year.
Historically, US stocks and Treasuries are inversely correlated. They move in opposite directions.
But for the past two years, this relationship has flipped. Treasuries and US stocks have never moved so strongly in tandem.
And as you can see, Treasuries have been strongly recovering – and look poised to break out past the resistance level established by their peak at the end of last year.
The reason for this? After the recent inflation data, traders are piling into rate-cut bets (regardless of what Powell says).
There’s still plenty of opportunity left in this market.
Insight of the Day
The large mega-caps may have “overstretched” their valuations – but this is not the case for the smaller stocks.
When people talk about “overstretched” valuations, they’re mainly talking about the large mega-caps that everybody knows about.
This is not the case for the smaller, lesser-known stocks – which is where the major opportunity lies.
As I said yesterday, there could be a “breadth breakout” on the horizon…
Which – coupled with a possible breakout in the Treasury market – could be hugely positive for these smaller stocks.
Of course, to take maximum advantage of this situation, you need to be very selective in which of these smaller stocks you position yourself in.
And that’s why 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 in stocks with major price-moving catalysts the market hasn’t priced in yet…
By following the trail of the insider money.
The strategy I’m showing has never had a losing year…
And after my live masterclass later today, you’ll know:
- How to access the database containing the records of all these insider trades…
- The key mistakes people make when following these insiders…
- And the 3 counterintuitive insider buying signals you must know about.
So, if you haven’t already, make sure you click here to guarantee 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. Do try to login early if you can.
Ross Givens
Editor, Stock Surge Daily
