Schools across the country are closed due to the coronavirus pandemic. And like millions of other students, my kids are taking their classes remotely.
Now, they’ve already been at home for a few months…
The funny thing is, I think they’d actually rather be in school right now. It’d help them build up more excitement for summer break.
Don’t get me wrong. My kids are still crawling out of their skin, waiting for their vacation to start. But the wait to be home from school again would’ve been worth it.
And the same thing is happening in the markets.
Normally, people would be cheering for a rebound. Instead, the rapid rally we’ve seen has them worrying about when the next pullback will be. Waiting for stocks to climb again after the bottom would’ve been more worth it to them.
But the truth is that it doesn’t matter which way the market moves in the short term – as long as you stay patient and look at the big picture.
Look, I know it’s hard being patient, especially when you’re waiting for a big payoff.
But if you persistently follow the big money, you can ride its coattails to big profits in all sorts of market conditions. And today, I’ll tell you where it’s headed next…
Our Market Timer
Regular readers know that I created an “unbeatable” stock-picking system that focuses on market data. It follows the big money’s movements.
Now, I used my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – to make sure it’s highly accurate, comprehensive, and effective.
My system scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. But it doesn’t just look at individual stocks. It also tracks big-money buying and selling in the broad market.
And this data is so accurate, it was only one trading day off in predicting the March 23 bottom. Remember, my system’s market timing indicator – the Big Money Index (BMI) – called for the trough to be on March 20.
It also forecasted eight other market moves during this pandemic-related sell-off… including the market rebound.
Right now, the BMI level is at 91% and peaking…
As you know, when the index hits 80% (the red line in the chart) or more, it 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.
The truth is, we’re very overbought. And just as I predicted last week, we’re starting to see signs of a pullback now. The major indexes are all down about 2–4% today.
So we can expect the market to give back some of this mega rally from the March 23 lows. This will hand us an opportunity to deploy cash and buy some great stocks on sale.
It’s also why we don’t want to chase the market or worry about feeling left out. So here’s my advice right now…
The Hardest Part Is Being Patient
As I’ve told you, the stocks leading this rebound have been in the infotech and health care sectors. We’ve seen big buying in them for weeks now, so these stocks are on a solid watch list for me.
For now, it’s best to look to take some profits and trim some risk while the market chugs higher. Otherwise, we should simply sit still and wait for the market to come to us.
I know it’s difficult to do nothing with all the market volatility…
Last month, I was interviewed by Wealth Research Group. I’d said my data predicted a market bottom, and we’d see a rally from the lows. But it was a very unpopular view then. I got plenty of negative feedback for it.
Still, I trusted my data and stayed patient. And the market has rallied nearly 26% from the bottom.
Just remember, the hardest part about being a kid was being patient: waiting for the trophy at the end of the season… for exams to be over… for summer break to arrive.
But if you think back to when you were a kid, the wait was always worth it. And waiting for the right market setup is worth it, too.
Patience and process!
Editor, Palm Beach Insider
P.S. As long as you target “tennis-ball” stocks – the ones that’ll rebound even higher than the broad market during this volatility – the wait for profits will be worth it.
It’s already identified several winners for my Palm Beach Trader subscribers. They’re up about 25–60%, even during this crisis.
So don’t miss out on the next tennis ball to profit from. You can join us on finding it right here.