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Hey, Ross here:

Yesterday I talked about the possible resumption of a calm uptrend in the markets…

A rising tide that will help lift all boats.

Today, let’s look at a chart that shows how much healthier the market is right now compared to end-October.

Chart of the Day

Source: @MattCerminaro via X

This chart shows the difference in the forward price-to-earnings ratio of the various S&P 500 industry groups as of last Friday versus the end of October.

If you recall, there was a LOT of talk during that time (and in the following weeks) about extended valuations and the possibility of a bubble.

Well, as you can see from today’s chart…

The vast majority of industry groups have seen their forward P/E ratios pull back…

While the market itself is just spitting distance away from the end-October high.

This means that multiples have contracted while underlying earnings have improved – a good sign of a healthier market.

And there’s one benefit of this “multiples contraction” we’ve seen over the past few weeks…

A benefit that could be very profitable if you play your cards right.

I elaborate below.

Insight of the Day

As sentiment improves, expect market exuberance to push valuation multiples higher again.

Look, I’m happy to see that the market is in a healthier place right now, with more reasonable valuation multiples.

But with bullish sentiment coming back with a vengeance…

I expect all that exuberance to push valuation multiples into “overstretched” territory again.

It may take some time for that to happen – but it will happen.

And that will set up the next pullback – and the cycle goes on and on once more.

But let’s bring it back to the benefit I was talking about above.

As exuberance reenters the market and valuation multiples start swelling again…

That’s going to send a lot of stocks rocketing upward…

Especially in certain industry groups where multiples have pulled back the most.

That’s where I’m hunting for opportunities right now.

And in just a few hours at 11 a.m. Eastern later this morning…

I’m going LIVE to reveal my top hunting method to track down the most explosive, high-conviction setups in these industries…

A method that has helped us identify moves like 163% in seven weeks… 270% in 10 weeks… and a massive 177% in just 11 days.

As I said yesterday, we’re in one of the most favorable market environments in weeks…

Especially with the Fed likely to cut tomorrow.

Don’t waste it – get it while the going is good.

The live session is 100% free to attend…

But you’ll need to click here to guarantee your spot if you haven’t already.

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

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 

Android: https://play.google.com/store/search?q=goto&c=apps

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Embrace the surge,

Ross Givens

Editor, Stock Surge Daily