When it comes to Wall Street, I follow the data. It helps me keep my emotions in check – and tune out the fear perpetuated by the mainstream media’s headlines.
And to specifically track the market’s data, regular readers like you know that I created an “unbeatable” stock-picking system.
It follows the big money’s movements. And its data shows that the market’s movements happen in waves…
Now, wouldn’t it be great to know when these waves will happen before they actually do?
It’s like carefully watching the ocean as a surfer. By spotting the "Big Wave" before it hits, you can ride it to fame.
In the market, you’d be able to ride its upswings higher to profits. So today, I’ll show you how my system spots these market waves in advance.
I’ll also reveal which wave we’re in right now – and what that means for our investing plan…
Selling Is Over… For Now
Remember, 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 my system is highly accurate, comprehensive, and effective.
It scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. And it doesn’t just look at individual stocks. It also tracks big-money buying and selling in the broad market.
Now, my system 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.
The BMI also forecasted eight other market moves during this pandemic-related sell-off (including the rebound rally of over 31%).
And right now, the index level is at nearly 88%…
As you know, when it 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 usually means buyers are in control and markets are overbought. So we’re very overbought right now.
Looking at the market waves chart from earlier, this means we’re in Phase 1 – when selling is nonexistent and buying is flooding in.
So here’s what we can expect ahead…
Waiting for the Peak
Overbought market conditions usually last several weeks. And we want to ride this current high wave to its peak. So now’s not the time to sell.
We don’t want to be the surfer who gets off a huge wave early, just because they’re afraid of a wipeout.
Instead, the best thing we can do right now is ride this wave higher for more profits until we get another buying opportunity…
Once the BMI level starts to fall again, we’ll likely see another short-term pullback. This will hand us the chance to pick up high-quality stocks at a discount.
The bottom line is, we simply need to keep an eye on when the data changes (and selling starts to pick up again). And I’ll keep you updated every step of the way.
In the meantime, we’ll let our current winners run… while we get our shopping lists ready for the next stock market sale. When the time comes, we’ll take some profits and redeploy our cash for the next wave higher.
You see, even in a short-term sell-off, high-quality stocks will continue to thrive and lead the way. And we want to target these “tennis-ball” stocks – the ones that rebound even higher than the market when it rallies again.
If you want broad exposure to these sectors, you can consider buying the Invesco QQQ (QQQ) ETF. It holds 53 top infotech and health care stocks.
But again, to truly profit during the market’s next wave higher, you have to target the tennis-ball stocks. And my system can help you find them.
In fact, it identified one life sciences software stock for subscribers to my Palm Beach Trader service. It recently hit 52-week highs, and we’re up over 60% on it in under two months.
And there’s still plenty of time left for you to join us on finding the next tennis ball to profit from. I’ve even put together this special presentation about my system so you can learn how.
Patience and process!
Editor, Palm Beach Insider