Buy Growth Stocks Now
Believe it or not, our data can talk.
Lately, its saying: “buy growth stocks now.”
Most of our readers by now expect us to have a constantly bullish tune. We are after all, cut from the “bull” cloth.
But every so often there are points in our data that screams a rally is imminent. This is one of those times.
But, to be clear: it’s not an all-encompassing rally.
No. This one will be very specific. Smaller high-quality names are leading the charge… the juicers. I’ll show you what I mean in a bit.
First, let’s dive into our data and why we hear it saying those 4 juicy words: Buy growth stocks now.
Big Money Index Is Ready To Blast Off
Let’s start from the top and work our way down. The Big Money Index monitors all Big Money buying and selling in stocks.
It’s been sloppy the past few weeks. I’ve overlaid IWM (iShares Russell 2000 ETF) because it best represents what’s been going on for months.
There’s been a correction in small-cap stocks:
I’ve shaded in red the changing tide of the BMI. Small-caps have gone nowhere since February. But the bigger message is we believe that’s about to change.
Why? Because our data is chanting… if you listen closely, you’ll hear: Buy growth stocks now!
Stay with me and I’ll explain. Below we see the daily Big Money Stock Buys and Sells chart. It’s the undercurrent of the Big Money Index.
Blue bars are buys and red bars are sells. Monday was a nasty sell day. I’ve outlined how big red days usually mark lows for markets.
Look:
Each of those green tubes show how monster sell days are bullish. I’ve circled Monday’s action because it’s so similar to prior market dumps.
And if you’re curious on the forward market performance after those specific dumps, we included them here: How to buy the dip. But as a reminder, take a look:
Source: MAPsignals, FactSet
Let’s just say…it’s JUICE.
Now, let’s turn our attention to ETFs. What can they tell us? I’ll give you a hint: Buy growth stocks now. Notice how Monday’s ETF dump looks similar to prior ETF swoons:
Look how Monday’s ETF selling looks like prior dumps. Will the pattern of ETF dumps hold this time? Only time will tell. But, as a reminder, here’s the forward performance for those prior ETF sell days:
Source: MAPsignals, FactSet
If the diagram above could speak it would say, “may the bears rest in peace.”
If you can’t already tell, we’re bullish. But why are we saying to buy growth stocks now? I’ll show you.
Buy Growth Stocks Now
Within all of those blue bars (above) are individual stocks. We’ve observed that many of them are high-growth names. That’s what our system is designed to find: the best stocks out there.
And when you look for Big Money magnets, often you find growth stocks.
When I look under the hood of our data, it’s clear that smaller-cap stocks with growing sales and earnings are leading the rally since Monday.
For a clear picture of that, check this out:
Each month we put out our popular MAP 50 report. It showcases our top 50 stocks seeing Big Money over the past 6 months.
Think of the report as the best of the best Big Money stocks. It only allows the juice to come through. Just look at the performance of the August MAP 50 stocks compared to the S&P 500 (SPY ETF) obtained from the soon-to-be-coming MAPsignals market portal.
To do that, this graph plots the performance of the 50 stocks from the day it was released (August 15th) until yesterday:
Disclaimer: Best efforts were made. Past performance is no guarantee of future performance.
It displays a MAP 50 performance of ~+2% vs a SPY performance of ~-1.7%. And that right there is why our data is chanting, buy growth stocks now. It’s also why members dig the MAP 50. Many stocks responsible for the big outperformance are growth stocks.
That’s our message for today: The Big Money parade sweeping the markets is loving great growth stocks…it’s there if you listen.
Let’s wrap this up.
Here’s the bottom line: Our data is making a loud cry: Buy growth stocks now! After big stock and ETF sell days, markets usually squeeze higher. That’s what we’re witnessing right now.
Wait- what’s that sound?
Can you hear it?
Buy growth stocks now…
Buy growth stocks now…
As a bonus, our latest video is out: Best Stocks to Buy Now for October 2021. Jason swims in our data to find killer stocks…many are OG MAPsignals names.
Enjoy!
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And if you’re wanting even more. Luke and Jason are presenting How To Find the Best Stocks Now at the Wealth365 summit next month. Mark your calendars for October 12th at 2PM ET and tune in virtually.
It’s free. Click the image below and sign up.
