A couple days ago, we got the latest consumer confidence data from the Conference Board.
It showed that only 37% of respondents expect stock prices to rise over the next 12 months.
This was a substantial decrease from 47% the month before.
Let’s look at why this could be a contrarian buying signal.
Chart of the Day
This chart shows how the S&P 500 has moved when the consumers’ expectations of a lower stock market spikes by 10% or more in a month – like what we just saw.
As the data shows, in the majority of cases this was actually positive for the stock market.
In fact, six months later, markets were up by double-digits nearly 90% of the time.
This data may be surprising to some.
But if you’ve been a regular reader of this newsletter…
You know that bottoming retail sentiment is almost always a contrarian buy signal.
I explain why below.
Insight of the Day
Retail sentiment is always “one step behind” when it comes to positioning.
Here are the facts:
- Retail traders and investors don’t have enough capital to truly move markets
- They act more on feelings rather than objective strategies
- They tend to wait for “guaranteed” confirmation before making their moves
This means that, for their sentiment to improve, the market recovery would already have to be well underway…
Which also means they’re already one step behind.
That’s why you don’t want to wait for retail sentiment to improve – it’s already too late.
You need to position yourself before that happens.
A couple weeks from now, there’s a massive market-moving event happening…
One that could send stocks – and retail sentiment – surging.
One that could send these leading stocks shooting higher.
Earlier this week, I hosted a special live briefing to show you how to take advantage of this stock…
Using a little-known playbook for potentially pulling gains as high as 608%, 851% and even an extraordinary 1,829%.
Too many folks weren’t able to attend the earlier briefing, leaving them unprepared.
That’s why later this morning at 11 a.m. Eastern…
I’m going live to show you how to prepare and profit from this event.
Don’t miss out again.
If you haven’t already, click here to confirm your seat for my live briefing…
And I’ll see you in a bit at 11 a.m. ET.
Customer Story of the Day
“Ross is so amazing with his ability to explain everything in layman's terms and using basic and understandable references, helping make all of his lessons, tips and tricks just click!
He's even funny to boot, making learning about stock trading actually fun! I honestly look forward to the weekly Zooms w/ him and can say that those "classes" alone are worth their weight in gold!
He never makes you feel like your question is stupid and the fact that he literally gets to everyone's questions and comments in the chat is amazing.
I feel 110% more confident w/ my stock moves b/c of my newly learned technical analyzing methods.
No more guessing what to do. Only strategic, calculated moves and I would have never gotten to this point without Ross and TA!”
Ross Givens
Editor, Stock Surge Daily
