Hey, Ross here:
The headline indexes are hiding a pretty important shift right now.
And it has nothing to do with whether the S&P finishes up or down half a percent today.
Let’s take a look below.
Chart of the Day
This chart tracks how aggressively funds and other large investors are positioned in Nasdaq futures.
After briefly dipping negative earlier this summer, exposure snapped back hard.
From August 4 through September 1, non-dealers added to their positions every single week…
For a total of $51.3 billion in notional exposure.
That’s a record.
So there’s clearly still a lot of money willing to take risk in this market.
But now look at what’s happening across the broader market:
Only 43% of S&P 500 stocks are currently trading above their 50-day moving average.
That’s the lowest reading since April 7.
So while investors have been pouring money back into Nasdaq exposure…
More than half the stocks in the S&P 500 are struggling to stay above a basic short-term trend line.
That tells me the money hasn’t disappeared.
But it is getting more concentrated.
And as I explain below, that can be good news.
Insight of the Day
Concentrated money leads to more explosive breakouts.
If investors were simply pulling money out of the market, this would be a different story.
But they’re not.
There’s still plenty of capital looking for somewhere to go.
It’s just landing in fewer places.
And when a smaller group of stocks starts attracting a bigger share of that money, the buying pressure can get intense…
Something which can turn “ordinary” breakouts into explosive ones.
That’s an opportunity we can take advantage of.
That’s why later today at 3 p.m. Eastern…
I’m going LIVE to show you my best and favorite breakout pattern.
It was ranked the #1-performing chart pattern in both bull and bear markets by one of the best-known researchers in the field…
And it’s helped our members get shots at moves like 70% in 10 days… 114% in four days… and even 148% in just two days.
I’ll also reveal the name and ticker of one stock setting up in this pattern right now.
Click here to secure your free seat for today’s LIVE session if you haven’t yet…
And I’ll see you at 3 p.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=apps
Customer Story of the Day
“I have learned an incredible amount of how to trade”
Ross Givens
Editor, Stock Surge Daily
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