The monster rotation is gaining steam. This is very healthy action that’s long overdue. Here are 3 reasons small-cap stocks are heading a lot higher. Yesterday’s 3.65% selloff in the NASDAQ 100 was the worst since 2022. All major indices got clobbered, but mega-cap Tech in particular felt the brunt of the latest market-cap reshuffle. […]
We’re witnessing one of the most powerful rotations in recent history. And it has more room to run… Wall Street’s trade of the year is in full force. Rarely does a rotational quake strike equity markets. But when positioning reaches extremes, it’s only a matter of time before a breath-taking unwind occurs. Literally one month […]
To me, great research is defined by what you say when times are tough…not when the gettin’ is good. Let’s rewind the tape back to October when the Big Money Index (BMI) alerted an incredible setup. Not only did we pound the table that a breath-taking rally was coming, we have the equity performance to […]
If your stocks aren’t holding up this year, you’re not alone. Most equities are behaving wildly different than major indices. The Big Money Index plummets to new lows in 2024. Last week we discussed how a monster reversion trade is coming. The average stock in the S&P 500 is drastically underperforming the overall cap-weighted index. That […]
The appetite for stocks is off the charts. …especially mega-cap tech names. This has caused market breadth readings to plummet. But don’t fret because now’s the time to get ready for a monster reversion trade for the Ages. Let’s face it, if you’re not holding the handful of AI-fueled growth names right now, odds are […]
It’s a wonderful time to be a stock investor. Not only are markets making all-time highs, select names have incredible multi-year tailwinds. Many of those reside in the Technology space. Here are 3 easy reasons to buy semiconductors hand over fist. A lot has happened the past week: With markets and high-quality tech stocks reaching […]
Did you get the memo that it’s time to buy Technology stocks? Of course you didn’t. The media has been focused on job growth and rate cuts. But the reality is tons of growth stocks were dumped last week. That’s good news because capitulation in Tech stocks signals massive upside ahead. Lots of folks discuss […]
Stock investing is simple. Just hold great companies. But it can get simpler when broad indices find a tailwind. That’s the situation today. One bullish omen for the NASDAQ just fired. Data has a way of cutting through the non-stop noise. As institutions buy and sell there are repeatable patterns that offer clues as to […]
The bad beats keep coming for the bears. Markets chug higher week after week as money flows surge into growth pockets of the market. We’re witnessing one of the strongest stock picking environments in years. Here’s how to find the most powerful winning A.I. stocks like Celestica (CLS). Today’s message is very simple: The next […]
The way to make money in stocks is to bet big when the crowd is uninterested. That’s our playbook year after year. The biggest small-cap opportunity seen in years is here now. You can feel the change in tone the last few days. As inflation continues its death spiral, investors are finally coming around to […]
Markets have been quiet lately, effectively trading flat the last 2 months. Investors are looking for the next catalyst to lift equities higher. We’ve got you covered as we see a very positive forward picture unfolding. Today we’ll share 3 reasons we’re gearing up for a summertime rally. Coming into 2024, our stance was simple: We […]
Plenty of growth stocks are feeling the pain. That’s what happens when institutional demand grinds to a halt. Don’t fret. One rare setup just fired, indicating a major ultra-bullish signal is approaching. The rips and dips keep coming for equities. The Fed presser from yesterday offered little confidence for investors. We’ll let other research shops […]
Our data has been down-trending for months. Our North Star, the Big Money Index (BMI), has been falling from extreme overbought conditions since February. A falling BMI indicates that institutional sponsorship (inflows) is drying up. As you can see, while the rate of decline for the BMI has moderated, it’s still breaking new lows: Until […]
Fear is swirling. Equities are under pressure. When the bottom falls out of the Big Money Index, a huge opportunity is around the corner. Wow. What a difference a week makes. We’re finally witnessing a pullback that most thought was impossible. The overarching bullish sentiment seemed to never stop. That is, until recently. A cocktail […]
If you want to learn how markets work, study supply and demand mechanics. When buyers are more aggressive, stocks rally. When sell orders are increasing, equities fall. The latter is what is causing the Big Money Index (BMI) to make a fresh year-to-date low. I’ve mapped the BMI to the Russell 2000 (IWM) ETF as […]
Poll investors on which areas of the market are up the most since the October lows and odds are they’ll quickly say Technology. That’s actually the right answer. However, Financials are quickly closing that leadership gap. Since the market lows in October, only 3 groups have gained over 30%: Communications Services, Technology, and Financials: While […]
Money rarely leaves markets. It rotates. We are in the midst of a massive rotation favoring recent laggards. Small-caps will make all-time highs sooner than investors realize. As a data researcher, nothing gets me more excited than when a narrative shifts. Often, behavioral changes begin subtly…then the forward picture illuminates. Last week, I highlighted how Energy […]
Boomtown isn’t just in growth stocks anymore. The data is shifting. Here are 4 smart reasons to buy energy stocks now. The Fed effectively greenlighted stocks at yesterday’s meeting. With 3 rate cuts estimated for 2024 in the dot plots, Wall Street and policy is in lockstep. Markets like to be on the same page. […]
When a company initiates a dividend, it signals a lot of faith by the management team. Making the decision to share a piece of a company’s profits indicates the forward picture is healthy. Two all-star companies, Salesforce.com (CRM) and Meta Platforms (META) both recently initiated quarterly dividends of $.40 and $.50 per share respectively. (Disclosure: I […]
I like to say, you need to look backwards to see the future. When we review prior oversold instances of the Big Money Index (BMI), a clear pattern emerges. Stocks soar. On October 19th, we wrote how stocks surge out of oversold conditions. It’s not wizardry… it’s a data-based observation. Below showcases the forward returns of […]
Markets stall before they fall. Planning ahead is the key. Here’s how to play the likely stock market dump before the pump. Consider this: The Red Car Theory, believed to have originated with Charles Cooley, suggests that opportunities are around us but only once we have a conscious awareness. A common example is noticing red […]
Stocks remain subdued, bobbing and weaving daily. There are reasons to believe the trendless behavior will continue. Even still, keep searching for out of this world stocks. Consider this, for thousands of years humans have looked to the night sky in search of answers. According to Northern Arizona University, astronomical observations are believed to go […]
Some of the greatest buying opportunities arrive when stocks are in freefall. The latest small-cap meltdown triggered a rare 1% signal that you need to see. Here’s a fact: Estimates suggest that 80% of forest fires are caused by humans. What’s important is what happens after the flames burn out. Nature heals. Out of the […]
What a time to be alive. Stocks are at all-time highs, inflation is a distant memory, and the crowd can’t imagine a selloff. Be careful here. A stock market pullback is underway according to my favorite indicator. Baseball hall-of-famer Yogi Berra had a way with words. He once rattled off the following, it’s like déjà vu all […]
Q: Where do markets go from here? A: It’s all relative. Pessimists see overbought conditions. Optimists view the strong performance year-to-date as reason to celebrate. Depending on your stance, it’s undeniable that we’re reaching a critical market juncture. Consider this, back in 1929, a New York Times article discussed Albert Einstein’s theory of relativity. To get the […]
Welcome to new all-time highs. If you’re surprised, don’t be. This is what markets do over time. That said, staunch bears remain unconvinced that this rally is real. Watching Technology stocks rip day after day gets old sitting on the sidelines…but I’ve got news for the doubters. There’s more upside coming. Today we’re going to […]
News-of-the-day analysis rarely offers value. An ability to look forward is mission critical for investing. As we prepare for a healthy pullback in the weeks ahead, here’s your falling Big Money Index playbook. Here’s an interesting fact. Stare into a mirror and your reflection will appear as double the distance. Standing 5 feet away from […]
New years often bring a reset in the stock market. That’s great news for sidelined investors seeking new underfollowed opportunities. One lagging group is signaling a major trend shift underway. Today, I’ll share 3 reasons to own health care stocks in 2024. Ask a crowd which stocks are thriving right now, odds are they’ll tell […]
Headlines rarely offer value. That was a case in point in 2023. The better angle is to focus on evidence-rich data. Currently, history says to buy the dip in the first quarter. Remember, last year, how prophetic pundits proclaimed that markets would crash? Or that higher interest rates would climb unabated forever? Be careful what […]
When markets have a great year, you can bet plenty of stocks shined. Our research uncovered many monster winning equities, in some of the most surprising areas. Today we’ll unpack the top 5 most bought stocks in 2023. Markets twist and turn like waves in the ocean. Up and down they go, ripping and dipping […]
