Yesterday I talked about how to follow the Trump playbook and take advantage of earnings season overreactions.
Today, let’s look at one big potential source of these overreaction opportunities.
This chart shows two different tech-related sectors.
The higher one is the semiconductors sector, which is up 60% over the past year.
The lower one is the software sector, which is up a paltry 2% over the past year..
Both are related to tech…
And yet there is an extreme divergence going on here.
This tells me that investors’ expectations for the software sector are essentially rock bottom.
And when expectations are so low…
It creates opportunities we can exploit.
I explain how below.
Ross Givens
Editor, Stock Surge Daily
Chart of the Day
This chart shows two different tech-related sectors.
The higher one is the semiconductors sector, which is up 60% over the past year.
The lower one is the software sector, which is up a paltry 2% over the past year..
Both are related to tech…
And yet there is an extreme divergence going on here.
This tells me that investors’ expectations for the software sector are essentially rock bottom.
And when expectations are so low…
It creates opportunities we can exploit.
I explain how below.
Insight of the Day
Extreme expectations – on either end – create the conditions for maximal surprises. What is a “surprise”? It’s something that happens that’s out of line with expectations. And that means the more extreme expectations are – whether high or low… The more likely the chance for a surprise that can massively move prices. And as you may already know… The group of traders best positioned to exploit these opportunities are the corporate insiders… CEOs, CFOs, and board members using an SEC loophole to snap up their own company stock right before market-moving catalysts hit the news. They did it back in November last year in a tiny biotech called Alumis – smack in the middle of earnings season.. Following their trades into the stock could have handed you a gain of 279% in just two months. And that’s on top of gains like 168% in five months and even 1,787% in just two years in other stocks. Now, will the software sector create these massive surprise opportunities for insiders as earnings season moves along? I don’t know – but I’ll be watching the insider activity in that sector very closely. In the meantime, I’ve just spotted an extremely promising new insider trade… And later this morning at 11 a.m. Eastern… I’m going LIVE to give you all the details on this new insider trade… As well as walk you through exactly how to find these high-potential insider trades for yourself (among the hundreds out there). So click here to guarantee your free seat for my insider presentation if you haven’t yet… And I’ll see you in a little while 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. iOS: https://apps.apple.com/us/app/goto/id1465614785 Android: https://play.google.com/store/search?q=goto&c=appsCustomer Story of the Day
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Ross Givens
Editor, Stock Surge Daily
