I’ve been saying that we’re likely to run into choppy waters leading to the election – even though we’re still very much in a bull market.
Today’s chart confirms what I’ve been saying.
Chart of the Day
This is the latest result of the weekly sentiment survey carried out by the American Association of Individual Investors (AAII).
And as you can see, as of Wednesday, the percentage of bears has significantly increased.
Yes, overall sentiment is still strong…
But you can see the cracks forming.
As tensions in the Middle East continue to ramp up and the election draws nearer, we’re likely to see these cracks get wider.
But as I explain in the Insight of the Day below – this can be good news.
Insight of the Day
These cracks in market sentiment can be turned into an opportunity.
The most lucrative pullback opportunity in this bull market was late last October, when bearish sentiment was peaking.
In a bull market, spikes in bearish sentiment typically signal opportunity.
It’s counterintuitive, but it’s been proven time and time again.
So, as the media starts cranking the knob on the amount of doom-and-gloom they pump out…
As more and more traders succumb to bearish narratives…
The more opportunities there are for us to take advantage of.
As for how to spot these specific opportunities…
You have to look beneath the surface…
At the secretive “big money” trades that are really moving the market.
I call them Stealth Trades…
And here’s how you can use them to fatten your trading account.
Customer Story of the Day
“I am new at trading and have bought many programs, Ross's training is bar-none.
Ross is the first one I actually placed trades with. I only do one contract at a time and I am up $500 my first week. My first trades were life changing to me! Thank you, Ross and team...”
Ross Givens
Editor, Stock Surge Daily
