| 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. | Don’t Buy Energy Stocks, Even If They’re Cheap By Jason Bodner, editor, Palm Beach Insider Since the coronavirus pandemic broke out, we’ve seen unprecedented market volatility. Stocks were dropping 5% one day and rising 5% the next. At the beginning of March, Wall Street was so fearful that futures tanked and trading halted several times. From their February highs, all major indexes dropped 30–40%. And while there’s still plenty of volatility, most stocks have recouped some of those losses. (The major indexes are all up over 20% since the bottom on March 23.) But here’s the thing… Not all stocks are recovering equally. You see, during this Great Reset, the highest-quality stocks bounce back even higher when the market rebounds. They’re like tennis balls. However, others fall flat – like sandbags dropped from a roof. So even though now’s the time to take advantage of this huge money-making opportunity… if you’re not targeting the right companies, you’re basically wasting your time. And today, I’ll reveal which sandbag sector my “unbeatable” stock-picking system is saying you should avoid right now – along with the sectors seeing the most tennis-ball stocks. But first… A Key Market Collapse While the broad markets were the first shoe to drop during the coronavirus-induced panic, energy stocks were some of the hardest hit. You see, this pandemic has led to a decline in oil demand. And in early March, Russia and Saudi Arabia couldn’t come to an agreement on production to keep oil prices afloat. As a result, prices tumbled over 34% on March 9 – the sharpest single-day decline since the 1991 Gulf War. Oil companies felt the drop as well. The collapse in energy didn’t end there, either. On Monday, oil prices dropped into negative territory for the first time ever. And although prices have since recovered some… this shouldn’t come as a surprise, because here’s what I told you last Wednesday: Don’t get lured into energy companies right now just because their prices look cheap. They’re more than likely a value trap – and sandbags. And this is why… Separating the Sandbags From the Tennis Balls As you know, I created an “unbeatable” stock-picking system that follows the big money’s movements. 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 it’s highly accurate, comprehensive, and effective. My system 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 also tracks big-money buying and selling in the broad market… and ranks each sector by strength. 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 lower the number, the less buying the sector is seeing – and the weaker it is… | Sector | Strength Ranking | | Information Technology | 62.5 | | Health Care | 61.2 | | Consumer Staples | 58.4 | | Utilities | 55.5 | | Consumer Discretionary | 53.2 | | Industrials | 52.3 | | Materials | 50.7 | | Real Estate | 49.3 | | Communication Services | 47.8 | | Financials | 47.5 | | Energy | 47.2 | As you can see, energy is at the bottom of the list (and has been since February). That’s why I continued to warn you last week to avoid the sector, despite its cheap prices. Just take a look at the chart below of the Energy Select Sector SPDR (XLE) exchange-traded fund (ETF), which holds a basket of 27 top energy stocks… 
It’s recovered 40% since the bottom in March. But it’s still down about 45% year-to-date. That means, even though oil prices and energy stocks are rebounding with the overall market today, they’re still down big. And these are the sandbags you want to avoid. So where should you put your money instead? These Two Sectors Are Paving the Way If you take another look at the market sector rankings above, you’ll see that information technology and health care are the leading sectors. So they’re the ones you want to invest in right now. 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 45% on it in the past month alone. 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! Jason Bodner
Editor, Palm Beach Insider
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IN CASE YOU MISSED IT… "M Wave" could cause another crash in 2020 The man who predicted the 2020 crash… the 2008 crash… and made a fortune on both Black Monday in 1987 and the dot-com meltdown… now warns the coming days could either make you rich, or victim to the biggest market drop since March 16. "It could cost you everything," he says. Click here to learn more. 
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