Hey, Ross here:
The latest Consumer Price Index data will be released shortly.
Based on previous CPI days, there will most likely be a strong reaction to the data. This is an opportunity.
In the meantime, let’s look at a different kind of market divergence happening in the Magnificent Seven right now.
Chart of the Day
This is a chart from Bloomberg showing just how much the Magnificent Seven is diverging.
Specifically, Tesla, Apple, and Alphabet have been trending down, in contrast to the rest of the group.
If you’ve followed this newsletter, then you know I’ve talked about the divergence between the market’s performance and its participation (measured by the percentage of stocks trading above key moving averages, which is still below where I would like it to be).
The divergence within the Magnificent Seven is different – but one that I welcome.
Why? Because it means that some of the froth is getting knocked off the market – that even the biggest and most popular stocks are being brought back down to earth.
That’s what I want to see.
Insight of the Day
A divergence in the Magnificent Seven likely indicates a divergence in market leadership – which we can take advantage of.
If the Magnificent Seven is diverging, then that likely shows broader market leadership is diverging as well…
Meaning a new class of leaders is rising to supplant some of the previous leaders.
Couple this with the heightened volatility around the latest CPI readings, and you have a fantastic opportunity to target these rising stars as leadership rotates.
That’s why in just a bit at 11 a.m. Eastern later today…
I’m going LIVE for a masterclass that will allow you to position yourself in the best of these rising market leaders.
So make sure you click here to guarantee your spot in my masterclass before it fills up…
And watch out for the login details in your inbox soon.
It’s not everyday you get two intersecting opportunity windows like this, so don’t miss it.
I’ll see you in a bit.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
