Yesterday’s downward benchmark payrolls revision was the largest in over 10 years.
That’s even more justification for the Fed to cut…
And yet, markets barely reacted…
Meaning that rate cuts – or at least a 25-point cut – is likely already “priced in”.
If you’re looking at the popular tech sector to deliver a big move, you may end up disappointed.
Meanwhile, take a look at the money pouring into this sector.
Chart of the Day
This chart shows the volume of funds flowing into XLY – the Consumer Discretionary ETF.
Consumer Discretionary stocks are consumer companies that sell “nice to have” goods.
This is opposed to Consumer Staples stocks which sell “must have” goods.
So the Consumer Discretionary ETF has stocks like Starbucks, Lowes, and DoorDash…
While the Consumer Staples ETF has stocks like Walmart, Procter & Gamble, and Costco.
Consumer Staples is a defensive sector – one that performs better in a risk-off environment…
While Consumer Discretionary is an offensive sector – one that performs better in a risk-on, optimistic environment.
And as you can see from the chart above, fund flows into the Consumer Discretionary ETF have hit the highest levels in two years.
That’s a sign of healthy risk appetite, which is great for the market.
But it also has another crucial implication – one that most traders miss.
I explain in the Insight of the Day below.
P.S. Yesterday evening, I released my latest edition of 2 Trades in 2 Minutes. If you missed it – it’s probably because you’re on the SMS list. So just text the word “trade” to 87858 and get added to the list 100% free.
Insight of the Day
The most explosive gains tend to happen in the ignored sectors and stocks.
Tech, tech, tech – that’s all people want to talk about.
Don’t get me wrong, the tech sector is undoubtedly important.
Thanks to the size of the tech giants, they are the biggest drivers of the main indexes’ gains.
But for us individual traders, that’s not where we want to focus our efforts.
We want to focus on the ignored stocks and sectors – where the most explosive setups are more likely to occur.
Tell me, have you heard of Rhythm Pharmaceuticals… Tuniu Corporation… or Iris Energy?
I bet most traders haven’t.
And yet they’ve delivered gains like 163% in seven weeks… 177% in 11 days… and 148% in 2 days.
What did these setups all have in common?
First is, as I said – they’re all from the unpopular “ignored” corners of the market.
And second, these gains were all preceded by one single chart pattern…
A pattern than I’m going to demonstrate LIVE later this afternoon at 3 p.m. Eastern.
With the market firmly in “risk on” mode…
And the potential for a “jumbo” Fed cut next week…
This is the one pattern you want to have in your trading toolbox right now.
So click here to guarantee your seat for my live demo if you haven’t already…
And I’ll see you later this afternoon at 3 p.m. ET sharp.
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
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Customer Story of the Day
“Ross is always current, on top of market trends and why they move. It's because of the "why" that I am an Alpha and Fire Trader 's member.
Well worth the investment! You will be glad you joined!”
Ross Givens
Editor, Stock Surge Daily
