Before we head off into the Fourth of July holiday, let’s look at a chart that shows a theme that is still very much in play right now.
Chart of the Day
This chart shows how the various sectors – as measured by their respective ETFs – performed over the course of the second quarter.
As you can see, the divergence is still very much in play.
Over half of the sectors posted negative returns for the quarter – even though the S&P 500 was up over 4%.
And only three sectors outperformed the broad S&P 500 index – tech, utilities, and communication services.
This divergence is only likely to continue.
What does that mean for us traders? I explain below.
Insight of the Day
Divergence requires concentration.
In a divergent market, the gains are more concentrated in a select group of stocks.
And that means we need to be more concentrated in our trading.
Focusing on the top sectors as shown above is good – but we can do better.
Because remember, the data you saw above is the past. We need to be focused on the future.
And that means focusing on the highest-potential stocks in the fastest-rising sectors – because that’s how we go after the biggest gains in a divergent market.
Every week, I go LIVE in my War Room session to show you exactly how to target these stocks.
And in honor of the Fourth of July, I’m running a special deal where you can get one full year of access to these live weekly sessions for just 99 CENTS.
There’s no catch – just a great deal.
So click here to take advantage of it now (and you’ll also get all the details of my top AI-related play right now).
Ross Givens
Editor, Stock Surge Daily
