Hey, Ross here:
Welcome back to a new week – and new month.
To kick it off, let’s look at some charts showing that the rally is far broader than most skeptics think.
Chart of the Day
This is VALUG – The Value Line Geometric Index.
It is an index calculated using a geometric average of roughly 1,700 stocks.
It’s meant to be a representation of how the “average stock” is doing…
And as you can see from the above chart…
The “average stock” has just broken out to new highs.
Like I said, this rally is far broader than most skeptics realize.
Need more proof?
Look at RSP – the Equal-Weight S&P 500.
Or how about the Equal-Weight Nasdaq 100 (QQEW)?
Or the Equal-Weight Dow (EDOW)?
They’ve ALL broken out to new all-time highs.
And as the historical data shows, this positive momentum tends to beget even more positive momentum…
Showing that in every single year that the S&P 500 was up over 9% within the first 100 trading days – the rest of the year is almost always higher.
And as I’ve also said before, this rally is driven by more than just momentum…
But by impressive earnings growth as well.
Now look, I’m not saying that this rally is foolproof…
That it’s 100% sure to just keep powering on.
But what I AM saying is this…
Don’t bet against the rally based on “vibes”. Look at the data instead.
Insight of the Day
Most retail traders participate in – or avoid – a rally almost solely based on “vibes”.
They don’t look at the equal-weight indexes…
They don’t look at how earnings estimates have been tracking stock price growth…
And they have no idea what the Value Line Geometric Index is.
While they may not admit it…
Most retail traders participate in – or avoid – a rally almost solely based on “vibes”.
Thanks to you reading this newsletter, you’ve already separated yourself from this crowd.
Tomorrow, I’m going to show you how to go one step further…
And actively take advantage of all these “vibe-based” traders instead.
Keep an eye out for an email for me early tomorrow morning for more.
Customer Story of the Day
“Best service available, and I have tried them all.
Ross is the only one who spends his time trying to TEACH you how to do it rather than telling you buy this sell that.
It's like the old saying, "Give a man a fish you feed him for a day, Teach a man to fish, you feed him for life."
As a lifetime private trading club member I would Highly, Highly recommend TA to anybody, and I have recommended it to several of my friends and family.”
Ross Givens
Editor, Stock Surge Daily
