In these updates, I’m going to periodically take you through what’s going on in the market… where the big money is headed… what it all means for stocks… and how you can profit from it.
Today, I’m going over the market’s latest uncertainties over the politics and which sectors are taking a hit from it…
Click the image below to watch the video (or scroll down to read the transcript).
Hi, everybody. It’s Jason here, and welcome back to another special edition of Palm Beach Insider. In these updates, I’m going to periodically take you through what’s going on in the market… where the big money is headed… what it all means for stocks… and how you can profit from it.
As a quick recap, I spent more than a decade on Wall Street, trading the largest order flows out there. For example, if a billion-dollar money manager—or better yet, a $10 billion money manager—wants to buy $500 million or $1 billion worth of stock, guess what? Well, he or she has to do that over time because the available shares just aren’t necessarily there to do it in one day.
They have to piece together these orders and do them over time. And this has a major impact on prices the longer the timeframe goes on. So the bigger the orders, the more impact they can have on the price of a stock, regardless of the fundamentals.
An Unbeatable System
This is why I went ahead and built a system with my partner. We spent over a decade and more than a quarter of a million dollars building it. And we were able to find the very orders we used to handle showing up in our data every day.
But we didn’t have to be sitting at the trading desk. I could be here in Palm Beach; I could be anywhere. The idea was to be able to sit anywhere in the world and track these big monsters as they move in and out of stocks, with only publicly available data.
So we took that concept and coupled it with finding the best-quality stocks—the stocks growing sales and earnings, with big profit margins. Just the best in show. We have around 1% of stocks accounting for about 50% of the market’s gains over the past hundred years, based on one study.
We want to be in this 1% of stocks. Just like you want to be in the top 1% of winners. The same goes for stocks. And that’s our system. We’re taking this information every single day and compiling it.
Trump, Impeachment, and 2020
Now, what have we been seeing in the market? Well, obviously in the news, the impeachment story is heating up… It appears [Secretary of State Mike] Pompeo was in on the call; it’s all Ukraine and impeachment this, and Democrats that.
It’s causing uncertainty in the markets, which investors don’t like. No secret there. And it’s my personal belief that if there’s one person who can get through this, it’s President Donald Trump. He seems to be immune to a lot of this stuff. Time will tell. In fact, I still sort of believe he’s a shoo-in for the next election. Mark my words. [More on this in tomorrow morning’s Palm Beach Daily.]
And what the big money is telling us is: They’re a little nervous of Elizabeth Warren. I went over this yesterday as well… Healthcare has been seeing a lot of selling. Over Friday’s and Monday’s trading, the largest selling signals were in biotech and health care management. And software companies in the tech space have been seeing a ton of selling for the past two weeks.
Typically, that means money managers were long the best stocks. Software stocks were the best in show; they were the most profitable companies with the biggest gains. And all of a sudden, these money managers got caught the wrong way being short small caps. Then, they had to go take profits and cover those shorts. So they sold software stocks.
And then what happens is, the computers kick in when they detect other people selling. They jump on board and push everything to extremes. That’s what we’re seeing in software. It’s starting to tail off a little bit. Yesterday, we saw some selling in software, but it’s focusing on the health care stuff now.
Now, if you’re interested in figuring out which specific stocks I like right now… which ones the big money is moving into… and how we can get huge, outsized gains from them, I want you to click this link and register for my special event coming up tomorrow night. You don’t want to miss it. And until then, have a great day. I’ll talk to you again soon.
Editor, Palm Beach Insider