Hey, Ross here:
Welcome back to a new week.
Recently in this newsletter, I shared how retail investors have almost been “trained” to buy market dips.
But as today’s chart shows…
They may now be on the run.
Chart of the Day
This chart shows net retail buying on a rolling 1-month basis.
The dark purple line is total net retail flows, while the lighter one shows single stock flows only.
But that distinction doesn’t matter that much in this case.
Because as you can see from the chart…
Retail flows on both a total and single-stock basis have been sharply falling.
In short, retail may be on the run…
Just as the S&P 500’s Put-Call ratio has spiked to the highest level in 4 months.
If you remember, the Put-Call ratio tells us the ratio of put options (bearish views) to call options (bullish views) on the index.
A spike in this ratio means a spike in bearishness.
But as I’ve said before, peak bearishness is actually bullish…
Which is why, as the table above also shows…
A spike in the S&P 500’s Put-Call ratio has historically been pretty bullish…
With the index higher by close to 3% four weeks out over 90% of the time.
So when you take two of these data points together – retail on the run, plus the put-call ratio spiking…
You have a unique situation that’s ripe to be exploited.
I explain below.
Insight of the Day
When retail flees, the smart money gets bolder.
If you’ve been reading this newsletter for a while, then you already know that peak bearishness tends to be bullish.
But do you think the “average” retail trader knows that?
I can guarantee you they don’t.
Most will see other retail traders fleeing for the exits – and they do the same.
But the “smart money”?
They know exactly what this peak bearishness means.
And they can see the data showing that retail is on the run.
This means that soon, I believe we will likely see the “smart money” ramp up their buying…
Which is something we can take advantage of.
I’ll share more about that tomorrow morning – so keep an eye out for that.
In the meantime, make sure you watch my breakdown of the most important investment report of 2026.
Customer Story of the Day
“Ross is great at explaining and guiding me through everything he is teaching.
I’m learning more every time I listen to him and I had no experience whatsoever before I began to watch his material.
His team so far has been amazing and very responsive.
Thank you, I’m excited to continue learning.”
Ross Givens
Editor, Stock Surge Daily
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