| Welcome! In this free e-letter, I’ll show you where the big money is headed in the markets so you can follow it to profits. And we love to hear from our subscribers… Tell us what you like, what you hate, and how we can make Palm Beach Insider the best free e-letter on following Wall Street to profits right here. | The Market Just Handed Us a Pair of Aces By Jason Bodner, editor, Palm Beach Insider The market just dealt us pocket aces… In poker, there’s no better feeling than peeling back your hole cards and seeing two aces. They’re one of the strongest pairs in the game. So you should always bet them. Now, pocket aces aren’t unbeatable. But they stack the odds in your favor. And as a numbers guy, I like to stack the odds in my favor. Here’s what I mean… Right now, market conditions are so oversold that a short-term bottom is either nearing or has already occurred. And when this happens, it’s like the market’s dealing us a pair of aces. You see, history shows that the market quickly flies higher after these bottoms. I know it’s hard to make bets on the market right now. Volatility is high… Investor sentiment is low… And the entire world is gripped by the fear of this unprecedented coronavirus pandemic. But if you’re a regular reader, then you know I’m a “glass-half-full” kind of guy. And I believe we’ll get through this crisis, recover, and continue our centuries-long trend of progress. The market will make new highs again. I’m sure these things will happen… Because when it comes to the markets, I go strictly by the data. I have no room for feelings: I simply look at the numbers. So today, I’ll show you why the data says we need to place our chips on the table… Epic Selling As you know, I developed my own “unbeatable” stock-picking system. I’ve 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. It scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. It also looks for the buying and selling movements of big-money investors in the broad market. Normally, we turn to my system to identify the best sector the big money is piling into to follow it to profits. But with the unprecedented volatility and panic in the market, there’s virtually no buying happening now. So today, we’re going to take a look at the big-money selling in the market sectors… 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. The table below ranks the 11 GICS sectors based on the big-money sell signals my system is picking up. The higher the percentage, the more selling the sector is seeing. And anything over 25% is extreme selling… | Sector | Stocks Seeing Big-Money Selling | | Utilities | 72% | | Financials | 55% | | Communication Services | 46% | | Consumer Staples | 43% | | Real Estate | 43% | | Industrials | 40% | | Materials | 39% | | Health Care | 31% | | Consumer Discretionary | 28% | | Energy | 28% | | Information Technology | 11% | As you can see, 10 of the 11 sectors are seeing extreme selling. And this data implies that the largest-scale selling (through hedge fund liquidations) has passed us. This means a bottom has likely formed. Now, let’s turn to my big-money index (BMI), which tracks the ratio of big-money buying and selling in the markets. Right now, it’s at 9%. 
Since I’ve started tracking this data in 2012, we’ve never been this oversold. That might seem like bad news… But I dug through the numbers over the past 30 years. And there were just three other times when the market was this deeply oversold. But each time, the market was up by double digits again within a year. | Date BMI Drops Below 10% | S&P 500's 1-Year Forward Return | | September 1990 | 21.4% | | July 2002 | 18.2% | | October 2008 | 21% | | March 2020 | ? | | Average | 20.2% | So we’re seeing a super-rare, deep pullback right now. But here’s the bottom line: A year from now, the market will be much higher. Skate to Where the Puck Is Going I know the markets are scary right now. We’re continuing to see more volatility each day. In fact, after gaining over 6% last Thursday, the S&P 500 dropped over 3% the very next day. And we’ll continue to see this type of volatility during this pandemic. Just know this: We’re extremely oversold right now. But historically, these conditions don’t last long. So I’m not worried moving forward. When the big-money index falls below 10%, it’s like the market is handing us pocket aces in poker. Because when it turns higher again, great stocks tend to rise like phoenixes. Sure, we can possibly lose with this hand. But the odds are saying to push our chips to the middle of the table. So while most people are obsessed with nailing the market low right now… we’ll keep looking for stocks that’ll be double- and triple-digit winners over the next 12 months. Like Wayne Gretzky once said, “Skate to where the puck is going to be, not where it has been.” Patience and process! 
Jason Bodner
Editor, Palm Beach Insider P.S. Right now, my “unbeatable” system is pinpointing the best stocks during this oversold period that’ll rise like phoenixes during the inevitable rebound. But you need to get in on these stocks before the big money lifts them higher. That’s why I put together this special presentation with all the details on my system right here. Remember, I used my experience from nearly two decades at prestigious Wall Street firms to develop it and make sure it’s highly accurate. You see, my system uses specific algorithms to look for this big-money buying activity. And it can help you profit on these phoenix stocks since it predicts Wall Street’s buying activity up to 10 days in advance. You won’t want to miss out on their gains.
Like what you’re reading? Send us your thoughts by clicking here. 
IN CASE YOU MISSED IT… LAST CHANCE: Must See By Midnight Wednesday This is it. Your special offer to join Teeka Tiwari’s elite crypto research service, Palm Beach Confidential, will expire on Wednesday, April 1, at midnight. After the deadline, you WILL officially lose $2,500 worth of bonuses and gifts – and your chance to learn the names of 5 tiny cryptos that could make you up to $5 million richer. Click here now, before you miss out. 
| 
No comments:
Post a Comment