One of the clearest tells of a true bull market is how investors position themselves along the risk curve.
A simple but powerful way to track this is by comparing High Beta stocks to Low Volatility names.
Think of High Beta as your offensive areas — tech, growth, discretionary. On the other side, Low Volatility is made up of more defensive sectors like Staples, Utilities, and Healthcare.
So in strong markets, High Beta outperforms. In weak environments, it gets left behind.
Simple as that.
And right now? High Beta is leading.
That’s a clear sign risk appetite is back. Investors are leaning into offensive areas, and positioning for upside.
As long as this ratio continues to trend higher, it tells us participants are willing to take on more risk.
That’s the kind of environment where you want to be aggressive and lean into strength.
We’ve been doing exactly that in Wave Trader — pressing our bets and capitalizing on the momentum. This month alone, we’ve put on 15 trades, with the majority delivering significant gains, including multiple doubles and multibaggers.
