Markets pulled back a little yesterday on renewed tariff fears.
The media is already jumping all over it.
Personally, I’m seeing it as an opportunity.
Let’s start the morning by looking at the true market outperformers.
Chart of the Day
This chart shows the percentage of S&P 500 (large-cap), S&P 400 (mid-cap), and S&P 600 (small-cap) stocks hitting 3-month highs.
Considering that large-caps have been leading the charge out of the April lows…
You would expect the S&P 500 to have the highest amount of stocks hitting three-month highs.
But as you can see from the chart above, that’s not the case.
The mid-cap S&P 400 and the small-cap S&P 600 both have far higher percentages of stocks at three-month highs – 35% versus the S&P 500’s 28.7%.
That’s a big difference…
And that means the smaller stocks are actually doing better than their larger counterparts…
Even though the media is predictably only focusing on the large stocks.
That’s the overlooked opportunity. I explain more below.
P.S. Tired of searching for this newsletter in your crowded inbox? Text the word “trade” to 87858 and get it straight to your phone.
Insight of the Day
There are many “quiet breakouts” happening under the surface of the market.
If a stock hits a new 3-month high – that’s a breakout. No two ways about it.
So the percentage of mid and small-cap stocks hitting new 3-month highs tells us there are many “quiet breakouts” happening under the surface of the market.
You won’t read about them in the news, but they’re there.
And given how healthy the market is right now – as I showed you during the breadth readings in yesterday’s newsletter…
These “quiet breakouts” are only likely to keep happening.
Now, stocks dipped yesterday, and we may very well be entering into a minor pullback.
That’s an opportunity to position yourself in more of these “quiet breakout” setups.
And that’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to show you a small pocket of stocks that could be poised for a “quiet breakout”...
The kind that could lead to gains of 100% or more.
I’ll show you the chart pattern you must know to detect these breakout stocks…
Specific entry points…
And most importantly – the danger zones to avoid when hunting these breakouts.
So click here to guarantee your seat for my live session if you haven’t already…
And I’ll see you in just a bit at 11 a.m. Eastern.
Don’t be late.
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Editor, Stock Surge Daily
