Whenever you gaze up at the night sky, have you ever tried to count how many stars you can see?
Turns out, there are about 4,500 visible stars on a clear night. Sounds amazing, right?
But what’s more amazing is what we can’t see.
According to astronomers, all of the celestial objects we can see – the millions of stars, planets, and galaxies – only make up 4% of the universe. The other 96% is made up of dark matter and dark energy.
We can’t see dark matter and dark energy. And scientists don’t really understand what they are. But based on what we know about physics, these “invisible” forces have a huge influence on the stuff we can see.
It sounds a lot like the stock market to me.
Most investors are only aware of 4% of what’s going on in the markets. They pay attention to the “leads” they hear from talking heads on CNBC… Or they follow the latest “rumors” they see on trading apps like Robinhood.
But they’re missing out on the unseen 96% that’s really moving the markets.
I call this invisible force “big money.” It’s the “dark energy” of the stock market. In fact, big-money institutions are responsible for 70-90% of the market’s daily trading volume.
But unlike astronomers studying the universe, we can track the market’s “dark energy.”
In fact, I developed my own system to do just that. And below, I’ll tell you what moves the big money is making – and how we can follow their lead to make a handsome profit…
Shining a Light on the Market’s “Dark Energy”
When you see a big move in the market that you can’t explain, it’s usually the big money making it.
I learned this from my nearly two decades of experience at prestigious Wall Street firms like Cantor Fitzgerald and Jefferies, regularly trading more than $1 billion worth of stock for major clients.
It’s the big-money buying and selling that moves markets. And if you can pick up on these movements, they can tell you where capital is flowing in the market right now.
But the thing is, Wall Street likes to keep this activity hidden. You see, it gives them an edge over the little guys.
So when they make big moves, they try to cover their tracks. However, regular readers know that I created my “unbeatable” stock-picking system to sniff them out.
It scans nearly 5,500 stocks each day. And it uses algorithms to rank each one for strength.
But my system does more than just look at individual stocks. It also looks at the big-money buying and selling in the broad market through the Big-Money Index (BMI).
So here’s what it’s telling us about the market’s “dark energy”:
Now, when the index level dips to 25% (the green line in the chart) or lower, sellers have taken the reins, leading the markets into oversold territory. And when it hits 80% (the red line) or more, it means buyers are in control and markets are overbought.
Last week, the market broke a record for the longest overbought period in the 30 years since I’ve been tracking this data. So for the time being, stocks have the upward momentum.
But if we look closer, we can get a better idea of which sectors the big money is betting on…
The Next Big Move Is Coming
To narrow down where the big money goes, we break down its flow by sector.
Now, most sectors are seeing plenty of big-money buying and little selling. But the two showing the most buying are tech and health care stocks.
I know I’ve been pounding the table a lot on tech and health care lately… but we follow the data. And so far, buying into tech and health care has been a profitable trade.
I first recommended the Invesco QQQ (QQQ) exchange-traded fund on April 20. It holds a basket of more than 50 tech and health care stocks. It’s up about 27% since I recommended it.
Based on the data, we think there’s plenty more upside for QQQ.
But if you really want to take advantage of the big money… you need to focus on the best-of-the-best stocks that big money is buying. Just 4% of stocks account for nearly all the gains in the market over the past 100 years. So if you really want to beat the market, you have to zero in on these companies.
These are stocks that can soar in any kind of market. And they could jump 10x, 100x, or 1,000x thanks to a special event that’s happening any day now.
Now, most investors won’t see these types of stocks because big-money buying is “invisible” to them… just like dark matter and dark energy.
But my system knows how to find the 4% of stocks that really power the markets. And right now is the time to act.
You see, in the coming days a billionaire will make a certain announcement that will boost some stocks higher. It’s guaranteed to happen. And I believe a certain group of stocks will benefit from this.
I’ve just recorded an urgent message about this phenomenon where I break it down. You can go right here to watch it now.
Patience and process!
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Jason Bodner
Editor, Palm Beach Insider
P.S. If you want more of my in-depth analysis of the market, make sure you attend my presentation next week. I’ll be speaking at the MoneyShow Virtual Las Vegas Expo on Wednesday, August 19. You can find out more info right here.