stocks

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows how the small-cap Russell 2000 index has been performing relative to the large-cap S&P 500 for the past three years. The steady decline in the chart shows that small-caps have been lagging their large-cap counterparts for years. But the current rotation appears to have reversed that trend. In fact, this rotation seems to have broken past the declining trend line, suggesting it will likely continue. There are no guarantees, but the odds are in our favor. This is an opportunity we shouldn’t miss. I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows the S&P 500 index with all the days where it closed at least 2% lower marked in blue. For every one of those -2% closes, it shows how many stocks in the index closed higher despite the lower overall close. Yesterday, 165 stocks – 33% of the index – closed higher even though the index fell by 2.3%. This was the highest number by far in the past 10 years. What does this mean? I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows the S&P 500 index with all the days where it closed at least 2% lower marked in blue. For every one of those -2% closes, it shows how many stocks in the index closed higher despite the lower overall close. Yesterday, 165 stocks – 33% of the index – closed higher even though the index fell by 2.3%. This was the highest number by far in the past 10 years. What does this mean? I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows the Volatility Index (VIX). You can see it spiking during the April pullback and then coming back down in May as the market recovered. It spiked again in the second half of last week as the market retreated slightly. We’ll have to see if the VIX goes back down this week. If it doesn’t, we could be in for another shallow pullback. If you’ve followed this newsletter for any length of time, you’ll recognize it for what it is. I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows the Volatility Index (VIX). You can see it spiking during the April pullback and then coming back down in May as the market recovered. It spiked again in the second half of last week as the market retreated slightly. We’ll have to see if the VIX goes back down this week. If it doesn’t, we could be in for another shallow pullback. If you’ve followed this newsletter for any length of time, you’ll recognize it for what it is. I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Today's chart shows the Volatility Index (VIX). You can see it spiking during the April pullback and then coming back down in May as the market recovered. It spiked again in the second half of last week as the market retreated slightly. We’ll have to see if the VIX goes back down this week. If it doesn’t, we could be in for another shallow pullback. If you’ve followed this newsletter for any length of time, you’ll recognize it for what it is. I explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. Here's the percentage of stocks trading above their 200-day moving average over the past year. Here’s the percentage of stocks trading above their 50-day moving averages. Since the beginning of this month, the percentages of stocks trading above their 200 and 50-day moving averages have spiked. This means participation in this bull market has been sharply increasing – we’re no longer in a narrow bull market. This expanding base will provide the foundation for the bull market to keep chugging on. But what’s causing this expansion in breadth? And how can we take advantage of it? I’ll explain more in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. The five major Wall Street banks made nearly $15 billion in stock trading profits in the second quarter – 18% higher than last year. As a former VP at one of these banks, this doesn't surprise me. They have the capital to move markets with their trades, leveraging not just their own money but also influencing their top clients' trades. It's not an even playing field, but knowing how the game is played can work to our advantage.

Hey, it's Ross Givens here with the Chart of the Day. As of last week, markets were pricing in two 0.25% rate cuts by the Fed by year-end. Now, they’re expecting nearly three. Since the Fed moves rates by at least 0.25%, this means the market anticipates either a 0.50% or 0.75% cut. This expectation of higher rate cuts is a good sign. But as I explain in the Insight of the Day, you don’t want to wait for the rate cuts to happen.

Hey, it's Ross Givens here with the Chart of the Day. On June 24, I posted a chart of the Equal-Weight S&P 500 index, highlighting a bullish wedge pattern that could signal a strong breakout. It took a few weeks, but the index broke out last week. Along with the small-cap breakout, it looks like participation in this bull market is steadily widening. This provides the necessary foundation for it to continue for potentially many months longer. Don’t sit this one out.

Hey, it's Ross Givens here with the Chart of the Day. Last Wednesday, I shared a chart showing a bullish wedge pattern in the small-cap Russell 2000 and predicted a breakout. Well, look at what happened in the two trading days right after that. Small-caps are indeed breaking out, setting us up for a “small-cap summer.” If this plays out, it’s going to be hugely positive for us. I explain why in the Insight of the Day.

Hey, it's Ross Givens here with the Chart of the Day. In their last monetary policy meeting, the Fed forecasted just one rate cut this year. Swap traders don’t believe them, pricing in two instead. After yesterday’s cooler-than-expected CPI report, those traders will likely be proven correct. Now is not the time to sit out of this bull market. But you should be mindful of how it may be shifting.