Violent Rotations

Hey, Ross here:

I talk a lot about market rotations in this newsletter.

They are a natural part of the stock market, almost like the weather.

But this year, we’re seeing some of the most violent rotations on record.

Chart of the Day

I’ve said before that tech is no longer just one single market.

And the two polar opposites are semiconductors and software.

For most of this year, semiconductors have been flying – with even huge stocks posting triple-digit gains.

Meanwhile software stocks have been sinking, with even highly profitable businesses seeing painful selloffs.

Semiconductors are the “hot” trade – software is the “stale” one.

Now, things may be shifting again, but that’s not the point of today’s newsletter.

Because if you look at today’s chart…

It shows how often semiconductors and software stocks have moved sharply apart from one another.

Specifically, it counts the number of times one group has outperformed the other by at least 10% over just 10 trading days.

And this year, that has already happened more than 50 times – by far the most on record.

In other words, the rotations are happening much faster and more violently than ever.

I explain the implications below.

Insight of the Day

Following rotations is one of the most surefire ways to beat the market

Following rotations means always being invested in the market leaders…

Which by definition, will always be outperforming the market.

That’s what makes following the rotations so powerful.

But now, with the rotations being so violent, it’s creating two critical implications.

One, following rotations is becoming increasingly difficult.

And two, at the same time, it’s becoming increasingly lucrative.

Higher difficulty, but higher reward.

Even the “smart money” has to play ball.

I’ve been hearing more and more stories about longer hours at all the investment funds as the money managers do their best to keep up with the speed of these rotations.

Because remember, while the “smart money” dominates the market as a whole…

Individual “smart money” funds don’t have that much sway.

So, they too are forced to keep up and follow these rotations – which, ironically, makes them even more violent.

The good news is, because the smart money is “forced” to keep up and keep moving…

We have more and more opportunities to follow their moves, and use their money for our own advantage.

That’s why in just a few hours at 11 a.m. Eastern…

I’m going LIVE for a strategy session to demo my strategy for tracking down these “smart money” moves.

A strategy that could have had you sitting on open gains like 375%… 322%… and even 716% right now.

Remember, the session is free, but we’re expecting a packed room…

So click here to guarantee your spot if you haven’t already…

And I’ll see you in just a bit at 11 a.m. ET.

P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.

iOS: https://apps.apple.com/us/app/goto/id1465614785
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Editor, Stock Surge Daily