• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MAPsignals

We map big money.

  • Latest Insights
  • Power of MAP
    • MAP Products
    • MAP System
    • White Papers
    • Videos & Interviews
  • Profit with MAP
  • About
    • About MAP
    • MAP Team
    • Authors
    • MAP System
    • MAP Products
    • Big Money Index
  • Members
    • Get Started With MAP
    • My MAP
    • Big Money Charts
    • MAP View
    • MAP View Options
    • MAP Top 20 Weekly
    • MAP 50
    • Member Updates
    • Platinum Updates
    • Members Only Posts
    • Performance
  • Portal
  • Latest Insights
  • Power of MAP
    • MAP Products
    • MAP System
    • White Papers
    • Videos & Interviews
  • Profit with MAP
  • About
    • About MAP
    • MAP Team
    • Authors
    • MAP System
    • MAP Products
    • Big Money Index
  • Members
    • Get Started With MAP
    • My MAP
    • Big Money Charts
    • MAP View
    • MAP View Options
    • MAP Top 20 Weekly
    • MAP 50
    • Member Updates
    • Platinum Updates
    • Members Only Posts
    • Performance
  • Portal

Big Money Index Is Nosediving

December 2, 2021 //  by Lucas Downey//  4 Comments

There is one story to tell today.

The Big Money Index is nosediving.

Big Money Index Is Nosediving

Let’s cut to the chase. Headlines are swirling about 2 risks to the market: the omicron variant and Fed taper talk. And while some headlines warrant focus, at MAPsignals, I’ve learned to pay less attention to news…I realized long ago that it rarely amounts to sound investment advice.

I found my home in data. More often than not, it tells the real story. And today’s message is blunt: Selling in stocks is the highest since the pandemic low.

In the past 2 weeks, our data has flipped…on a dime.

Extremes are here. There’s immense pain and carnage. Portfolio managers are de-risking.

And I’ll show you all of this. Today’s charts are the most important you’ll see. And as scary as all of it is, there are green shoots to look forward to in the coming weeks.

Just like there was a game plan back in early March 2020, and we made our biggest bullish call ever on March 19th, 2020 – I have one today.

Let’s do this.

Big Money Index Is Nosediving

We need to start from the top and work our way down. The Big Money Index is nosediving – in other words, it’s deteriorating at an alarming pace.

Below I’ve outlined this plummet and how on the surface it looks eerily similar to July’s selloff…but hang with me:

big money index is nosediving

The level of selling is much higher than July. And before we look at sell signals, I want to backup for a second.

Each day we track the number of stocks & ETFs that trade in a big way. It’s important because it’s another datapoint to add to the narrative. I rarely bring this chart out, but today it needs a mention.

Below shows the Big Money Trading Activity chart. These are the daily counts of tickers seeing unusual trading. Our universe size is 1400 – 1600 stocks depending on the environment.

Look how the last 2 days have seen a max-out in terms of big trading counts. And I also highlighted July’s trading counts:

 

Stock trading is maxed out

 

 

Guys and gals, the current level of trading activity is magnitudes higher than July’s. Here’s the same look at trading levels going back to the pandemic:

pandemic saw epic trading in stocks

 

There is a monster wave of selling hitting stocks. This is why the Big Money Index is nosediving. And when trading action is high, alongside a nasty pullback – stock selling is off the charts.

Tuesday and Wednesday saw the biggest selling in stocks since the pandemic low. Below is our Big Money Stock Buys and Sells chart. The red bars are sellers. Blue sticks are buyers.

This chart compares this week’s selling to July’s selloff. It’s more intense now vs. then:

biggest stock selling in 2021

 

In fact, it’s the most selling seen since the pandemic rout in March 2020. But, there’s no comparison today to what was seen then. Look:

COVID pandemic selling in stocks

Now we know exactly why the Big Money Index is nosediving. Let’s now round this section out and look at ETFs.

Below shows how this week has the most ETF sell signals since July:

Big ETF selling in 2021

 

So, as you can see, it’s dire out there. Anyone long stocks is feeling the heat. And this is where my tone is about to change. The million-dollar question is “How do investors play the coming weeks?”

I’ll tell you.

How To Play The December 2021 Selloff

If you’re a diehard bull, you wait for rough patches to scoop stocks on sale. Now is no different. Fear is not a strategy.

Many stocks are oversold. Dipping toes on high-quality beat-up names is a great idea when your hold time is years. That’s what I’ll be doing in the coming days and weeks. Prior Big Money favorites can be found on our MAP 50 lists.

Pick your spots. I always advocate to buy quality stocks on dips. I’ll be practicing what I preach.

Be patient and proactive at the same time.

Finally, if you’re more of a trader, here’s my advice for you. Periods like now is when MAPsignals shines. Eventually selling will slow and stocks will rise like a phoenix from the ashes.

The Big Money Index hasn’t gone oversold since March 2020. That’s our strongest buy signal ever. I made a decision long ago to always buy when we reach the green zone. It’s a gift.

If our data continues to deteriorate at this rate, it’ll take 2 – 3 weeks to get there. Just in time for the Santa rally. And our present to you will be another list of stocks set to explode higher, like the ones we sent the last time we were oversold.

Let’s wrap this up.

Here’s the bottom line: The Big Money Index is nosediving. Selling in stocks is the highest it’s been since the pandemic. Long-term bulls should use this pullback to pick your spots. Many stocks are oversold.

If selling continues at this pace, look for our rare oversold signal to trigger in 2-3 weeks…just in time for the holidays.

BUT if our data signals slowing selling…the toe-dippers will get the glory.

Hang in there folks!

***Finally, check out our latest video: Best ETFs for December 2021. Jason always sees the glass half full and when it comes to outlier stocks, you should too!

Make sure to follow our YouTube channel here so you never miss any of our videos.

 

Lucas Downey
Lucas Downey

Lucas is co-founder of MAPsignals. His full bio can be found here.
Prior to MAP, he was Head of ETF Sales at Cantor Fitzgerald & SVP of Derivatives at Jefferies, LLC.

Spread the word!

Category: All, Big Money Insights Weekly

Previous Post: «Best ETFs for December 2021 Best ETFs for December 2021
Next Post: Sizing Up Small Caps Sizing Up Small Caps»

Reader Interactions

Comments

  1. anna

    December 2, 2021 at 11:37 am

    Hi Luke

    Are you saying that this is a buying opportunity? And if selling keeps going on, buy more?

    Is it a good idea to have half of my funds to buy now and another half just before Christmas?

    Reply
    • MAPsignals Staff

      December 2, 2021 at 9:12 pm

      Hey Anna –

      The way I see it, anytime stocks are seeing extreme selling, it’s a good idea to pick your spots on great stocks.

      The data shows action that is likely unsustainable. So, that’s why dipping toes is warranted. As far as if it will persist, only time will tell. If we see similar selloffs next week, then my bet is we’ll be in for an oversold market in the coming weeks. Those are quite rare!

      Reply
  2. Sri

    December 3, 2021 at 11:05 am

    Don’t you think that this dip in BMI is due to some CEO’s (Elon Musk, Satya Nadella, Jeff Bezos etc.) selling their stocks and not necessarily a true dip but a temporary one?

    Reply
    • MAPsignals Staff

      December 3, 2021 at 2:16 pm

      Hey Sri –

      I don’t think it’s CEOs, but PMs that are forced to meet liquidation requests.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get Big Money Insights for FREE

Want to know where the Big Money is headed?

Just enter your email address below. You'll get our FREE NEWSLETTER sent directly to your inbox.

We call it Big Money Insights... It’s your weekly sneak peek at the powerful market-moving forces that are hidden from 99% of investors.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Categories

  • All
  • Big Money Insights Weekly
  • Big Money Series
  • Macro Insights
  • MAP In The Media
  • Members Only
  • Performance
  • Podcast
  • Special Reports
  • Stocks
  • Videos & Interviews
  • White Papers

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018

Follow us on Twitter

MAPsignals Follow 619 842

MAPsignals is a data platform that tracks institutional money flows in and out of the market.

mapsignals
mapsignals avatar; MAPsignals @mapsignals ·
30 Jun 1542518642461384709

The first half of 2022 is in the books.

The #bearmarket has sent #stocks tumbling.

Today, @LukeDowney reviews how sectors performed YTD and highlights two #sectors primed for upside. $XLY $XLK

Read here: https://mapsignals.com/map-blog/two-sectors-are-primed-for-upside/

Image for the Tweet beginning: The first half of 2022 Twitter feed image.
Reply on Twitter 1542518642461384709 Retweet on Twitter 1542518642461384709 0 Like on Twitter 1542518642461384709 1 Twitter 1542518642461384709
Load More...

Subscribe To Our YouTube Channel

MAPsignals

MAPsignals
#Capitulation #BearMarket2022 #StockMarketSelloff
Stock market capitulation is here. In this video, Luke dives into what capitulation is and what it means for stocks. Check out our latest blog post: https://mapsignals.com/map-blog/

What does capitulation mean for markets? It is when there's no leadership and investors throw in the towel. You've heard the saying, "sell first, ask question later?" That's how Wall Street thinks.

But these rare moments often lead to bargains for stocks. Capitulation can often lead to bottoms being formed in stocks.

As Lucas Downey shows, these moments are usually when investors should focus on quality companies in this bear market environment. Long-term is the best mindset in a bear market.

The best stock market analysis we've found is following the Big Money. MAPsignals doesn't argue with data.

Learn more at www.MAPsignals.com
Remember this is not personal investment advice of any kind. This video is for entertainment purposes only. Our focus is to help investors make sense of markets with data.

Our disclaimer can be found here: https://mapsignals.com/contact/

Music by Karl Casey @ White Bat Audio
Stock Market Capitulation is Here | Bear Market 2022
YouTube Video UC4nueJix0bSLmZyilUuCVrQ_xzXHj_aJvss
Load More... Subscribe

Footer

© 2021 Mapsignals.com

  • Home
  • Contact & Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Cookie Policy (US)
  • FAQ

Copyright © 2022 · Mai Law Pro on Genesis Framework · WordPress · Log in

✕
What Happened to Risk Assets White Paper is Here

Get your copy here and take a journey through our thoughts on margin and leverage.

Enter your email address below and you'll get our FREE NEWSLETTER sent directly to your inbox. 

 We call it Big Money Insights... It’s your weekly sneak peek at the powerful market-moving forces that are hidden from 99% of investors.

Manage Cookie Consent
We use cookies to optimize our website and our service.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}