Data cuts through noise. Especially when it comes to stocks.
For months, the message has been clear: Stock market bulls have a trail to blaze.
This morning I sat here poring over data. I do this daily. It helps me visualize themes like sector moves, subtle shifts, and new information.
For months, our Big Money data looked messy, like an unkept field. Rotation after rotation had no rhyme or reason. One week small-caps got love, the next it was growth. Chinese stocks plummeted. Software names caught a bid.
It was chaotic. Every so often data is trendless. Sometimes there’s no order.
But, then out of nowhere, especially when it comes to MAPsignals data, a path illuminates. Trends begin. Stocks act in unison, like bulls forging ahead in a herd.
And visually it’s apparent: The bulls have a trail to blaze.
It’s exciting when it all comes together. Months ago, I put my ear to the ground and felt the vibrations of Big Money’s Rallying Cry. What I noticed then were a few high-quality stocks getting bought.
A few quickly shifted to many, like a stampede growing ever closer. There was only one call to make, Buy Growth Stocks Now. And boy did the bulls run wild.
Since then, small-caps (IWM) have rallied ~6%. That’s alongside a strong showing in both the NASDAQ 100 (QQQ) and S&P 500 (SPY), gaining +4.43% and +4.61% respectively.
That’s what I call JUICE!
But that was then. What about now?
Saddle up: The Bulls have a trail to blaze.
Stock Bulls Have a Trail to Blaze
To see what’s really driving markets, check in on the Big Money Index (BMI). It plots the flow of money in and out of stocks. When it rips higher, be long stocks.
You can see how choppy small-caps were from February – September of this year. Then the bulls paved the way: UP. I’ve marked our prior bullish calls back in September:
But that’s an overview of what happened. Inside the BMI are daily buys and sells of stocks. Look how clear the message has been for many weeks. The bulls have a trail to blaze:
Buyers showed up in mass. Bears went to sleep. When that happens, markets rally.
But, let’s look deeper. Certain sectors are getting more buys than others. There’s a bid for high-quality growth.
Technology stocks are cranking right now. Below is a chart of our daily Tech stock signals. Look at that beautiful trail of green:
The same is happening with Industrials:
And Discretionary too:
Those are bull hoof prints blazing a trail! Don’t fight that trend.
On the flip side, there’s a slowdown in buying in Energy stocks. We referenced this last week, but it’s still worth mentioning today.
When buying in Energy stocks slows, the sector stalls:
With that overview let’s now laser in on stocks…juice stocks.
Outlier Stocks Lead Markets Higher
Inside all of this data are stocks. And when you rank them based on technicals and fundamentals, outlier stocks emerge.
That’s where we spend our blood, sweat, and tears…tears of joy! And what we noticed years ago when trading on Wall Street, was that just a handful of stocks keep attracting Big Money year after year.
7+ years later (as a business) that theme still holds true, big time. To show you what I mean, below is a chart of our top 5 stocks from November 10th, 2019 – November 10th, 2020. That means, these are the 5 stocks that got the most buy signals in that prior 12-month period.
The idea here is that Big Money favorites will continue to keep getting more Big Money. And they did. Look how they trounced the S&P 500 (SPY) since:
These 5 stocks gained nearly 75% compared to SPY’s impressive 32.81% return. That folks, is the power of outliers. For giggles, here’s one of those stocks, NVIDIA Corp. (NVDA):
Those blue bars are each time the stock ranked as a Top 20 stock. That’s what I call the stairway to heaven. What can I say, bulls have a trail to blaze!
These stock charts and portfolio charts can be created in our Portal for Platinum Members. And more charts are coming, so stay tuned!
Let’s wrap this up.
Here’s the bottom line: We’ve been bullish for months. Outlier stocks are ramping. The payoff has come the last few weeks with markets rallying. Enjoy it.
Until our data shifts, it says bulls have a trail to blaze. Don’t follow the headlines, follow the Big Money. It cuts through the noise.
Normally, I wouldn’t call myself a cowboy. But in this instance, I’m staying on the saddle.
What about you, partner?
***Finally, check out our latest video series: Best ETFs for November 2021. Jason strums the guitar as he finds 5 funds on his radar.
Make sure to follow our YouTube channel here so you never miss any of our videos.