As we run into September weakness, it’s worth keeping in mind that there are always pockets of strength we can rely on.
Chart of the Day
This is XLF – an ETF tracking a basket of financial stocks.
It’s been showing outsized strength lately – surging far past its mid-July highs in anticipation of the Fed beginning its rate-cutting cycle.
This is one of those pockets of strength I’m talking about – and there are plenty more if you know where to look.
The sharp rise in financial stocks also teaches us a critical trading lesson – which I explain in the Insight of the Day below.
Insight of the Day
Trading is a game of information and expectations.
I believe the market is pricing in at least a 0.25% rate cut later this month – that is expected.
That’s why financial stocks are rising so strongly – it’s likely already priced in.
If the Fed cuts by the “expected” 0.25%, I doubt we’ll see that much movement.
But if the Fed surprises with a 0.5% rate cut, they’re likely to jump.
Conversely, if the Fed surprises by not cutting at all, they’re likely to plunge.
So, if you have information that the Fed will surprise the market either way, you could make a killing.
Of course, there’s no way for us to take advantage of “inside” information about the Fed’s upcoming moves.
But – we can apply that very same principle in individual stocks.
Because the corporate insiders are actively trading their own company stock thanks to an obscure SEC loophole…
And that’s inside information we can take advantage of.
I developed a complete playbook around doing this…
And tomorrow morning at 11 a.m. Eastern…
I’m going LIVE for a masterclass that will show you exactly how to use this playbook for yourself.
Last week alone, we sold several of these insider positions for 30–40% gains each…
And these were positions we had held for just weeks or even days.
That’s the power of inside information.
So please click here to save your spot for my insider masterclass tomorrow morning…
Where I’ll show you:
- How to access the database containing the records of all these insider trades…
- The subtle yet dangerous mistakes traders make when trying to follow these insiders…
- The 3 counterintuitive insider buying signals you must know about…
With seasonal weakness hitting the market, this insider strategy is perfect for exploiting dip-buying opportunities in individual stocks – so don’t miss it.
Make sure you click here to register for the masterclass…
And I’ll see you tomorrow morning at 11 a.m. ET.
The login details will be in your inbox before it starts – do try to login earlier if you can.
Ross Givens
Editor, Stock Surge Daily
