Hey, Ross here:
The Nasdaq has struggled to hold its latest breakout.
Meanwhile, this group of tech stocks just posted its highest close ever.
Take a look.
Chart of the Day
This is a daily chart of XSW, the equal-weight software and services ETF.
It spreads its weight more evenly across its holdings, so a few giant stocks don’t dominate the result.
The white line marks resistance around $206.
That level stopped the advance in December 2024 and again in September 2025.
After recovering from its April low this year, XSW finally broke above it in late August.
That breakout didn’t hold. Prices fell back below the line in September.
But buyers have pushed it through again – with Wednesday’s close at $210.88 setting a new record.
Look at the colored moving averages underneath the price, too. All four are rising, with XSW trading above them.
So while the Nasdaq has struggled, software and services stocks have been building strength.
That’s the danger of judging an entire sector by what its biggest names are doing.
I explain what this means below.
Insight of the Day
You should be wary about writing off entire sectors.
Writing off an entire sector can take good trades off your screen before you’ve even looked at them.
You see the biggest names selling off, decide the sector is weak, and move on.
But every sector contains different businesses facing different conditions.
Software is a good example. Yes, it technically falls within the broader tech sector.
But a company selling business software doesn’t depend on the same customers or spending decisions as a chipmaker or a consumer-device company.
Even two software companies can head in opposite directions. One can lose a major customer while the other wins a contract that transforms its revenue outlook.
Calling both of them “tech” doesn’t tell you which stock buyers will want next.
That’s why when a group like software starts breaking higher while the broader tech index struggles – I take notice.
It tells me there are companies I should be examining more closely.
But if I’ve already ruled out the whole sector, I won’t find them at all.
That’s why it’s critical you don’t “put the blinders on” and write off entire sectors.
Sometimes, the best opportunities can be lurking in the smaller names – even though the dominant names may be struggling.
Of course, the issue is that there are so many smaller names out there…
Each with its own reason to move beyond the broader momentum.
That makes targeting them tricky.
Fortunately, I recently developed a very “tricky” strategy for sniffing out rare opportunities among these lesser-known names.
It works by identifying “underground” signals that most traders never notice…
But has preceded huge returns like 287%… 542%… and even 806% in a matter of weeks or days.
It’s also perfect for smaller accounts.
I’ll reveal everything in tomorrow’s email – so make sure you keep an eye out for that.
In the meantime, did you catch my video on two stocks setting up for a HUGE rally?
Customer Story of the Day
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Services are there for multiple different styles of traders.
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All the best always and forever to Ross and crew."
Embrace the surge,
Ross Givens
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