This Is When It’ll Be Safe to Buy Stocks Again

Palm Beach Daily

Chaka’s Note: Regular readers will recognize Palm Beach Insider editor Jason Bodner. Jason’s a Wall Street veteran who was one of a few individuals authorized to make multibillion-dollar trades.

Being on the other side allowed him to create a system that tracks where big institutional money is headed. And with coronavirus panics wreaking havoc in the markets, Jason’s daily market insights will keep you on the right track.

So be sure to check out today’s essay below. In it, Jason shows how this downturn’s setting us up for profits… while everyone else gets shaken out…

This Is When It’ll Be Safe to Buy Stocks Again

By Jason Bodner, editor, Palm Beach Insider

Coronavirus fears are gripping the globe. There are over 85,000 confirmed cases and at least 2,900 deaths.

And with the outbreak spreading in Italy and the rest of Europe, investors are panicking. It’s showing up in the CBOE Volatility Index (VIX) – the market’s so-called “fear gauge.”

Over the past week and a half, the VIX has spiked from 14 to over 46 – a major move for the index…

This increased fear has sent the markets lower, too. In fact, on Monday and Tuesday, the market had its worst two-day sell-off since 2015.

It also means investors are flooding to safe havens amid the volatility. Gold prices surged to seven-year highs, at nearly $1,700. And as I wrote on Monday, the big money is flooding into the more stable, higher-yielding real estate sector.

But despite the negative news, I’m still bullish. In fact, we saw an even bigger drawdown in December 2018, when the market crashed nearly 20%… only to rally 27% since then.

So this market pressure is normal and healthy after the climb higher since the start of the year.

And today, I’ll show you how this short-term sell-off is setting us up to profit while others get shaken out…

Following the Market’s Waves

Now, I created an “unbeatable” stock-picking system to track the big money’s buying movements.

You see, only 4% of stocks have accounted for nearly all the profits of the market each year for the past 100 years. And my system spots these outliers in order to follow the big money to profits.

These are companies like Facebook, Amazon, Netflix, and Google. Their stocks can return 10x, 100x, or even 1,000x your money.

Using my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – I made sure my system is highly accurate, comprehensive, and effective.

But here’s the thing: My system doesn’t just look at individual stocks. It can track big-money buying and selling in the broad market, too.

Over time, this buying and selling happens in waves. Just take a look at the chart below…

And right now, my system is saying that we’re in Phase 3… where selling continues to grow.

But as a result, this pullback is handing us a buying opportunity…

Picking Up Outliers on Sale

Back in January, I told readers to book some gains and have dry powder ready for the inevitable sell-off.

If you took my advice, congratulations. Now that it’s here, you’ve avoided the 15% drop in the markets.

And as you can see below, my system’s index of big-money buying and selling is indicating that selling is taking over…

When the ratio is at 80% (see the red line above) 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.

Although we’re not near oversold levels yet, the index is trending lower – which means lower prices are ahead.

So for now, expect more market zigzags. But let’s embrace this pullback and continue to be patient. When the buying cycle hits Phase 4 (see second chart above), we’ll pounce.

If you’re looking for safe, high yields in this volatile environment, consider putting some money into the real estate sector through the iShares U.S. Real Estate ETF (IYR). This exchange-traded fund holds a basket of 113 top real estate plays.

Just remember, this phase will pass. And we’ll be able to buy high-quality outlier stocks at discounts soon.

Stay bullish!

Jason Bodner
Editor, Palm Beach Insider

P.S. My stock-picking system recently pinpointed SolarEdge Technologies (SEDG) as an outlier for my Palm Beach Trader subscribers. And just a few weeks ago, we took 111% gains off the table as dry powder to buy our next triple-digit winners.

As I mentioned, this market pullback is handing us a chance to buy these great companies at a discount. And my system can help you spot them, too – just like it did with SEDG.

To find out how it spots big-money investors piling into the best stocks – and how you can ride them to profits just like my subscribers – check it out right here.


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