Hey, Ross here:
Welcome back.
It hasn’t been a great week for the broader markets, and the reason is apparent – the Iran conflict combined with weak jobs data.
The S&P 500 is down 1.7% for the year, while the Nasdaq is down 3.7%.
But as today’s chart shows – we’re in an extremely tight market…
And the next move could be a big one.
I explain below.
Chart of the Day
The S&P 500 has been moving up and down within a 4% range since the start of the year.
This is the tightest trading range to start the year in history – dating back nearly 100 years.
Tight trading ranges usually reflect a very close tug of war between buyers and sellers.
Demand is strong enough to keep prices from falling too much…
But there’s also too much supply for the price to break out higher.
So the market stays “stuck” – oscillating within that same tight range.
But that kind of balance rarely lasts.
Eventually, either buyers absorb the remaining supply…
Or sellers overwhelm demand.
That means when that balance finally tips, the move that follows is usually much larger than the range that came before it.
In other words, the price action is pointing toward the broader market having a strong breakout – or breakdown.
And with the most recent price action seemingly pointing toward a breakdown…
It’s not surprising that there’s a lot of fear in the markets.
But personally, I’m not too worried about it. I explain why below.
Insight of the Day
Because market dispersion is high, there are still individual stocks we can be targeting.
See this chart?
It basically shows the difference between the volatility of the average S&P 500 stock minus the volatility of the S&P 500 index.
The higher the chart, the more volatile the average stock is compared to the index.
Right now, that difference has reached levels last seen in 2008.
That’s dispersion for you.
And the best opportunities to target right now?
Well, every week I go LIVE to highlight the hidden opportunities most people miss.
And because it’s my birthday this week…
My wish is that you’ll take me up on my special offer…
And join me for a FULL YEAR for just 99 cents.
That’s literally less than 2 cents per live session.
If you don’t think that’s a no-brainer, then I can’t help you.
See you inside.
Customer Story of the Day
“Ross Givens from Trader’s Agency is an awesome resource to help you with your investing needs and investing education.
I waited about three months to write this review to give myself time to see the impact on my portfolio and I have been completely satisfied.
Ross has a no nonsense, simple approach that makes it easy for all investors and he takes the time to answer all questions on a weekly basis.
Thanks, Ross and Traders Agency!”
Ross Givens
Editor, Stock Surge Daily
