On May 2, The New York Times published an article about Asian “murder hornets” making their way to the U.S.
The coverage was so widely shared, the term topped Google’s U.S. search trends that day, with over 2 million hits. A week later, we’re still seeing headlines about it.
Some have even added this “invasion” of the world’s largest hornet to the growing list of concerns for 2020. Yet if you looked at the facts, you’d know the insect was first spotted last December – almost a half-year ago.
And so far, no nests have been discovered in the U.S. In fact, the Scientific American and Smithsonian magazines confirmed that scientists don’t believe the hornets are a concern for humans.
They’re worried about the potential impact to honeybees and agriculture. But they’re simply taking precautions to monitor the situation.
So this is a classic example of the media fanning the flames of fear. What you have to remember is, they do this because fear sells. And we’re seeing similar fear-inducing headlines with the unrelenting negative coverage of the coronavirus pandemic.
Despite many states starting to reopen and people emerging from isolation, the media focuses on the worst-case scenarios. But rather than let your emotions get in the way, you just need to focus on the facts.
That’s why today, I’ll go over what the numbers – not the headlines – are saying about the market… and how following the data has paid off for us as investors.
Data Over Emotions
As you know, I created an “unbeatable” stock-picking system to track the big money’s buying movements.
You see, only 4% of stocks have accounted for nearly all the profits of the market each year for the past 100 years. And my system spots these outliers in order to follow the big money to profits.
These are companies like Facebook, Amazon, Netflix, and Google. Their stocks can return 10x, 100x, or even 1,000x your money.
And using my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – I made sure my system is highly accurate, comprehensive, and effective.
But here’s the thing: My system doesn’t just look at individual stocks. It tracks big-money buying and selling in the broad market, too.
Over time, this buying and selling happens in waves. Just take a look at the chart below…
And right now, my system is saying that we’re in Phase 1… when selling is nonexistent and buying is starting to flood in.
But although we’ve passed the huge money-making opportunity of buying at the bottom, there are still plenty of gains left ahead…
Let’s Sit Still for Now
Remember, my system’s data is so accurate, it was only one trading day off in predicting the March 23 bottom. Its market timing indicator – the Big Money Index (BMI) – called for the trough to occur on March 20.
That’s when I was telling you to buy high-quality “tennis-ball” stocks – the ones that soar even higher than the market when it rebounds. And it’s paid off…
You see, the market has rallied over 30% (which is one of eight other market moves the BMI forecasted during this pandemic-related sell-off). Some stocks – like the ones in my Palm Beach Trader service – are up even more, by over 55%.
And right now, the BMI is at 84%…
Remember, when the level hits 80% (the red line in the chart) or more, it usually means buyers are in control and markets are overbought. And when it dips to 25% (the green line) or lower, sellers have taken the reins, leading the markets into oversold territory.
So we’re very overbought, and these conditions should last for a few weeks. But once the BMI level starts to fall again, we’ll likely see another short-term pullback.
The best thing we can do right now is sit still – because we have another buying opportunity ahead of us…
You see, even in a short-term sell-off, high-quality stocks will continue to thrive and lead the way to profits. And the pullback will give us another chance to pick up these tennis-ball stocks at a discount.
Again, we’ve already passed – and profited from – the bottom of this crisis. So let’s continue to enjoy the ride higher.
In the meantime, I’ll update you on any changes in the data. And we’ll get our shopping lists ready for the next stock market sale.
Patience and process!
Editor, Palm Beach Insider
P.S. As you can see, my system’s data can truly take the emotions out of investing – and lead to profits, no matter which direction the market’s headed in next.
It can help you target the best tennis-ball stocks out there, so you can add them to your shopping list. So I’ve put together this special presentation to show you all the details of how my system works.