MAP Blog

Shakira claims that “hips don’t lie” – Mapsignals can’t speak to hips, but we can speak to rips…rips in big money buying.

As we prepared for a 5% dip in the market, under the surface, our data was saying that big money was stepping in to buy. Big money buying can precede a rip in stocks. Remember, when you look at big money buying on thousands of stocks each day, when it starts to shift – we shift.

Our readers were prepared. We got out in front of this – in fact, we pointed to big money buying last week…the kind that we haven’t seen in 6 weeks. Check this out:

Before last week, we saw more selling than buying for 5 straight weeks (August). Typically, big selling lasts for a while. It comes in clumps. Then, it slows. Then, buying grows. Rinse and repeat.

So, what does big selling and big buying look like?

Let’s go back to late July for a moment. Up until then, week after week we were seeing more buying than selling. It looked a lot like the below from July 28^th:

But then something shifted. Below is what tipped us off that something was changing in August. Big selling was bigger than buying – that was different…that’s the shift. This is from August 4th:

As we all know, the month of August was ugly. Selling got bigger and bigger. I’ll spare you the charts of what big selling looks like. It’s a lot of red.

Then we hit a level that historically says a ~5% dip could be coming. It didn’t come. Check out what did come, though – big buying showed up again out of nowhere. This is from last week. This was the shift:

This new information led us to believe that “rips don’t lie” – rips in buying. Our big money index stopped heading lower. We even went out with this message on Sunday (9/8/19):

So, where are we now? Well, buying this week has been big. The big buy signals started last Wednesday – that’s when the story started to change. Since then, IWM (Russell 2000 ETF) has ripped 6.2%! This looks a lot like a massive unwind…a wicked reversion.

Here’s where we stand mid-week:

Bottom line: our data is showing very big buying. This is very bullish. Big buying can tip you off to a market ready to rip.

We prepared you for August volatility. We started telling readers in July, but this morning something happened. Our Mapsignals Big Money Buying (MBMB) Index breached a key level – 45%. You may remember that this means we expect to see lower market prices near-term. Basically, selling overtook buying and pushed our index down below 45%. But don’t worry, it’s nothing more than the 7th inning stretch. Our data says that the bears’ days are numbered. Selling is starting to exhaust itself.

So, what’s next? Historically we tend to be close to the end of a market pullback once the index falls below 45%. On average, it takes 13 days until the bottom. The average pullback is -5.45%.

As we’ve said before: get your buy list ready. History says the recovery will be fast.

BOTTOM LINE: The Mapsignals Index has guided us before: we think the bears’ days are coming to an end. Follow the big money and get your buy list ready.

Mapsignals finds tomorrow’s winning stocks. We also track the biggest losers: poor fundamental stocks that have massive sell signals.

The market is at all-time highs, still many stocks are losing. Here we discuss those stocks to avoid; the bottom 10. Here’s why…

Each week we produce a top 20 report for our platinum members. These are the the outliers…. the best stocks likely being bought up by big money. We also include a bottom 10 list; stocks showing big selling. This list is a warning: if you own them, look out.

To show you how good of a warning these are, here are all of the bottom 10 stocks from Q2 (130 stocks). How did they do?

Each bottom 10 is organized into a basket of 10 stocks. Performance is calculated from the date of the report and concluded through 7/23/19. Versus the S&P 500 (SPY ETF), there’s a lot of red.

Below are 5 stocks from those reports:

Here’s the bottom line: following the big money can help you predict a stock’s performance…both up and down.

“When the ’80s come back” in style, we’ll be ready. But, not the ’80s you’re thinking of. Our 80’s research gave us clues to an overbought market. That tends to happen after our ratio jumps above 80%.

A few short weeks ago we were decidedly bullish on the markets. You can see the post here (Fishing For Buyer’s In A Seller’s Pond). In it, we outlined findings that led us to believe the worst was behind us for the markets. You can see that the ratio was very depressed at 36%. But, today is a new day. Below you can see that the ratio shot up to 72%…so, what’s next?

Above we’ve circled a few areas. These are the times when the ratio started declining. That’s what we are watching for once we break into overbought (80%+).

Is this something to be worried about? No. The 80s is just an alert that the ratio will likely dictate when it’s time to pullback. We look at potential pullbacks as a great time to go shopping for great stocks on sale.

Bottom line: the 80s are great to look back on. Be prepared when we get overbought. Our readers can expect a special update once we break this level.