• 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
    • MAP 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
    • MAP 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

Growth Stocks Are Climbing Back

May 27, 2021 //  by Lucas Downey//  Leave a Comment

It looks quiet out there. Stock volumes are low and it seems like not much is happening.

But, under the surface we see a story emerging… growth stocks are climbing back.

GROWTH STOCKS ARE CLIMBING BACK

It appears that  recently a resurgence emerged for beaten down stalwarts. Only, I’m observing them rising slow and steady, like a rope climber.

Why the sudden growth revival? The media’s main reason might read something like growth selling is overdone, or inflation fears are calming.  But the real reason is far simpler: it’s because great stocks just keep trucking higher over time regardless of what they face.

Even all-star winners like Microsoft, Amazon, and Home Depot faced their troubles in the past. They were affected by tax hike fears, inflation fears, rotations… you name it. It’s part of how investor psychology and thus Wall Street really works.

Today let’s look at 2 main reasons growth stocks are climbing back. Stock selling slowed dramatically. One reason might be that earnings have been incredible for the first quarter.

Those 2 reasons alone set the stage for further upside in stocks, specifically high-quality Tech and Discretionary names.

It’s easy to succumb  to the media ranting about why growth is over. But at MAPsignals, we focus on data.

Big Money Data: Growth Stocks Are Climbing Back

The Big Money Index shows us lack of direction. Here we are 3 weeks after our Big Money Index Signals Red post:

big money index growth stocks are gaining ground

When we posted that, we saw indications that a pullback was near. Four trading days later the NASDAQ 100 (QQQ ETF) abruptly fell 4.41%.

That was then, this is now. And now it’s incredibly quiet.

Looking at the Daily Big Money Volumes chart it’s easy to see. This chart maps out unusually big trading of both stocks and ETFs according to our algorithms. Look how Monday’s trading tally was the lowest volume trading day in over 5 weeks according to our metrics:

daily big money volumes

But in this calm after the storm, we see little green sprouts. Let me say it again: Growth stocks are climbing back.

One way we know this is because the level of stock selling slowed dramatically.

You can see that here in our Big Money Stock Buys & Sells chart. It shows the daily total of stocks getting bought and sold.

Look how selling evaporated over the last 2 weeks:

selling slows as growth stocks are climbing back

Most of that red you can see in the circle is when growth was under attack. But, not only has growth selling slowed, we’re also seeing fresh signs of buying.

Let’s zoom in:

selling in technology stocks evaporated

And that’s not all. We see the same pattern for ETFs. Off to the right there’s hardly any selling registering at all:

investors are not selling ETFs

You may wonder why this points to growth stocks rebounding? It’s because before we can see big buy signals reappear in growth stocks, we must see selling disappear first.

That’s exactly what our data points to. We even hinted at this last week in our post, brace for more stock market volatility. We saw what we believed to be short covering in top-quality growth names, a trend that still persists.

But get this, yesterday’s data showed a few growth names seeing buy signals. Semiconductors, software, and computer equipment firms saw green. These are the stocks that have been getting punished in favor of reopen stocks since mid-February.

It wouldn’t surprise us if this trend continues in the near future. It’s unsurprising to us, given how strong earnings season has been.

Earnings Growth Has Been Massive in Q1

Never forget this: the biggest driver for stocks over the long-term is earnings.

That’s the single most important variable to a stock’s long-term value. And earnings for the first quarter have been spectacular.

According to FactSet, the S&P 500 recorded year-over-year earnings growth of 51.9% for the first quarter:

earnings growth for S&P 500 q1 2021

Discretionary, Financials, & Materials led the earnings growth by sector.

Revenue growth has been strong too. Technology stocks in the SPX (last quarter) trounced estimates with 94% of the group exceeding revenue estimates:

S&P 500 revenues beat estimates

Guys and gals, this is a terrific fundamental backdrop for stocks. Earnings and revenue are surging. And odds are that Q2 will be just as strong or possibly even better.

That’s not a bearish setup…that’s quite bullish.

So, let’s wrap this all up.

Here’s the bottom line: Growth stock selling slowed tremendously while earnings have been incredible. The combination of these 2 suggests growth stocks are climbing back.

All selloffs eventually pass. Odds are this latest pullback in Technology is coming to its conclusion. So, take off those bear suits …those are too hot and itchy for the summer months anyway.

At MAPsignals, we’ll keep adding on pullbacks because we know how the game is won in the end. Great stocks… TAGU (they all go up) eventually.

So, hang in there, folks. There’s good news out there…you just need to be receptive to it. And for the first time in a while, this week’s Top 20 report  will likely have a few growth names on it. So keep on the lookout for that!

One last thing: our latest video series is out, Best ETFs for June 2021. Check it out below as Jason goes over the top 5 Big Money ETFs you should pay attention to this month.

Don’t follow the news, follow the Big Money…

Disclaimer: MAP founders hold long position in MSFT in managed accounts and hold long positions in HD in personal and managed accounts.

 

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 June 2021 Best ETFs for June 2021
Next Post: Best Dividend Stocks June 2021 best dividend stocks june 2021»

Reader Interactions

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

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • 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 1,449 1,070

MAPsignals is a data platform that tracks institutional money flows in stocks and ETFs. Sign up for free insights here: https://t.co/SaAVHjKC9J

mapsignals
mapsignals avatar; MAPsignals @mapsignals ·
16h 1622987016957820928

One of my favorite #dividend #stocks having a day - Skyworks Solutions $SWKS - owned it for years

The $2B buyback is pretty significant given the market cap is sub $19B

#Semiconductors continue to see major inflows

Reply on Twitter 1622987016957820928 Retweet on Twitter 1622987016957820928 0 Like on Twitter 1622987016957820928 2 Twitter 1622987016957820928
Load More...

Footer

© 2021 Mapsignals.com

  • Home
  • Contact & Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Opt-out preferences
  • FAQ

Copyright © 2023 · 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.