Tomorrow's top stocks today
We took a deep dive into market volumes going back to 1990. We wanted to see what the market tends to do after big volume periods as well as low volume periods.
Hypothesis:
Heavy volumes are constructive in oversold conditions. Heavy and light volumes are warning signs in overbought conditions.
Findings:
Big volume usually appears at troughs in the market. Eerily light volume precedes lower market prices but is constructive long term.
Click the images below to download the white paper.
We may be the biggest bulls in town. It’s been the best way to be.
What you may not know is that we find some of the worst stocks out there. In this white paper, WOWSIGNALS, we look at recurring buy and sell signals in our data.
Do frequent signals forecast the direction of a stock? Yes.
One thing is clear – stocks that see tons of selling, keep seeing tons of selling.
Bottom line: Don’t catch falling knives.
“They should just close the market for August and re-open in September” is what a multi-billion dollar fund manager said to me a few weeks back. It’s true, markets tend to catch a cold in August. Maybe we should all be zombie investors in August…more on that in a bit.
Since mid-July we said that August tends to bring sell-offs. Having a game plan is key. The selling this week is nothing new and was expected. That said, Monday’s selling was the biggest of the year. Last time we saw massive selling like this was the week of 5/28/19. That didn’t last long. A zombie investor does well in this environment- buy great stocks and die for a while. Being a zombie can crush the market’s return, especially going shopping in a falling market! (link to a full report below.)
Will prices go lower near-term? Most likely. But, that’s a good thing because it’s a buying opportunity for great stocks. On July 14th we started preparing:
“Don’t get alarmed but know this:
We are in a strong market, trading at highs with nearly all buy signals. That’s usually unsustainable, which means I think we are setting up for a little give-back. I don’t do predictions, but gun to my head- we could see -5.5% by mid-August; 2850 on the S&P 500. The data will give clues if something like this is going to happen. But then I believe it will just continue to march right on higher.”
So, what’s next? We are prepping our buy lists. We only focus in on the best stocks out there.
What’s a zombie investor, anyway? Read our latest white paper, Zombies Are Real, in partnership with Navellier & Associates.
So here’s what you do: go on a market vacation for August and come back in September. If you’re brave and want to stay and fight- stay calm, have your shopping list handy looking for deals. Adopt the icy dead calm of a dead person. When you buy, plan on dying for a while like a zombie. When you wake up- odds are you’ll be really happy when you see your statements.
For ideas on what the best stocks are to look for, check our archives of MAP 20s. Or look for our member’s only post of target deals we are looking at (coming soon).
This is the way the world ends; not with a bang or a whimper, but with zombies breaking down the back door. ― Amanda Hocking, Hollowland
When the market rips higher, what happens to the top MAP stocks on average? Well, we tested it and the out-performance was nothing short of…wow. Basically, if you are in a bullish market and are looking to out-perform, you better have some monster stocks in your portfolio. On the flip side, if you are in a bear market how do MAP’s weakest stocks perform? Well, they fall like rocks. Basically, if you want to short stocks in a bearish market, you’d better have some less desirable stocks in your short portfolio. Read the report here.
If Tom Brady was a stock, would he be sitting in your portfolio right now? Would you have picked him as a rookie? Tom and his wife Giselle are outliers with professional accomplishments that tower over their peers. They are habitual winners. MAP focuses all our effort on finding outlier winning stocks- the ones that crush all the others. Are we good at it? You bet we are! How do we do it? Read our new Outliers white paper here to find out.
Align Technology, Inc. (ALGN) is a familiar name to MAP and is an outlier. It is +1620% since being identified by MAP in April 2011. See the chart below for the times ALGN was profiled as a MAP 20 buy stock.
