I grew up in the 1980s, hearing of all the fortunes that could be made in stocks. Hot tips and free advice of “buying low and selling high” were everywhere.
Of course, it was never that simple.
I thought I’d never figure it out. Even when I finally made it to Wall Street, I realized the pros found the market baffling at times, too.
But everything changed when a big London trader asked me to notify him of every “huge” trade – the ones worth hundreds of thousands of dollars or more – in the market.
I couldn’t monitor all the stocks and big-money trades myself, so I programmed a computer to do it for me.
That’s when I saw the impact of big players in the market firsthand…
These massive stock orders moved markets. And I realized it’s how people could make all those fortunes I grew up hearing about.
Since then, I’ve dedicated my life to hunting these big-money movements… so everyday investors like you can profit from them, regardless of market conditions.
And today, I’ll show you what the big money is signaling next for stocks – along with the two strongest sectors you can make big gains from now…
Hunting Down the Best Stocks
As you know, to follow the big money, I created an “unbeatable” stock-picking system that focuses on market data.
And 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. But it doesn’t just look at individual stocks. It tracks big-money buying and selling in the broad market, too.
Now, 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 occur on March 20.
It’s also forecasted eight other market moves during this pandemic-related sell-off, including the rebound rally of over 27%.
And right now, the BMI is predicting another near-term pullback…
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.
Now, the index level has been consistently rising since the market bottom. But this often happens after a crash, due to the evaporation of selling and rapid market rebound (and not big-money buying).
So this is normal. And at almost 77%, the BMI shows we’ll likely hit overbought levels this week.
When that happens, the market pulls back accordingly. (In fact, the S&P 500 dropped as much as 2% since I told you we were approaching overbought territory last Friday.)
But even in a short-term sell-off, high-quality stocks will continue to thrive and lead the way to profits.
And my system is identifying them in two key market sectors…
The Two Strongest Sectors
As I’ve been telling you, even though some don’t believe in this market rally, Wall Street is looking forward… The big money is expecting businesses to start reopening and a coronavirus treatment to make progress.
It’s betting on an overall path to recovery, despite 2020 first-quarter GDP decreasing by 4.8%. In fact, even names like Disney and Starbucks have managed to rally about 19% and 27%, respectively, in the past few weeks.
But certain market sectors are weathering this volatility far better – and even outperforming the overall rebound…
Now, the Global Industry Classification Standard (GICS) sorts the 11 sectors making up the S&P 500. Each sector is broken down by industry group, industry, and sub-industry.
And the table below ranks the 11 GICS sectors based on their strength, as measured by my system. The higher the number, the more buying the sector is seeing – and the stronger it is…
Information technology and health care are the leading sectors right now. So they’re the ones you want to invest in today.
Now, 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 to truly profit from this recovery, you have to target the tennis-ball stocks – the ones that’ll rebound even higher than the broad market. 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. We’re up over 52% on it in under two months.
But don’t worry. You can still 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