The stock market just threw us one heck of a curveball. Hopefully you’ve had your seatbelt fastened this week!
Yesterday, the Nasdaq Composite soared 12.1% – its second-best day on record and the best we’ve seen since January 2021. But just as quickly as the bulls charged in, the bears showed up with a vengeance.
By lunchtime today, the tech-heavy index had already given back 6%.
So what sparked the wild ride?
It all came down to President Donald Trump’s 90-day pause on some of the reciprocal tariffs. The announcement gave investors a much-needed breather – and sent short sellers scrambling to cover their bearish bets.
In other words, we saw massive buying pressure and a historic rally.
This morning, I ran the numbers behind the surge. Here’s what I found…
Buckle up for more volatility. We’re not out of the woods yet, and short-term weakness is still likely.
Long term? The outlook is bullish. When you get a rally this explosive – or this one-sided – it’s often the market’s way of flashing a big green “go” signal for investors with a 12-month horizon.
Here’s what really caught my eye: The advancing versus declining volume on the New York Stock Exchange (NYSE) yesterday was the highest we’ve seen since 1980. Advancing volume crushed declining volume by a jaw-dropping 68.3-to-1 ratio.
That’s not noise – that’s a tidal wave.
According to investment firm Carson Research, whenever that ratio tops 35, the average gain over the next three months is 11.9% – and the market was up 100% of the time. That’s a signal you don’t ignore. Take a look…
But it gets better…
Here’s a killer chart from Creative Planning. It shows the S&P 500’s performance after some of the biggest one-day gains since 1950. And guess what?
If you look out one, three, and five years… the market was up. EVERY. SINGLE. TIME.
Now, sure – these are just two data points. But when the bulls stampede like they did yesterday, history says it’s often the beginning of something big.
So in the short term, expect the wild swings to continue. But instead of panicking, use the dips to your advantage.
Start building long-term positions in high-quality companies while others are still catching their breath.
The numbers don’t lie – that’s how smart investors win.
Here’s to the future,
Matt McCallEditor, Market Insights
P.S. Did you catch my live event earlier this week?
The market craziness is causing people to act impulsively. And I decided it was time to sit down and put the recent action into perspective.
In today’s Market Insights, I provided some historical statistics for you to consider. But during the live event, I gave you even more.
If you haven’t already, please give it a watch! While the latest market action I discuss there may be outdated, the overall message still stands: think long term.
You can watch a replay of the event right here – it’s completely free!
The post Buckle Up – This Market Isn’t Slowing Down Anytime Soon appeared first on Centurion Publishing.
