• 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

Market Clouds Are Fading

February 10, 2022 //  by Lucas Downey//  Leave a Comment

Look, we’ve seen the biggest selling in stocks since the pandemic lows. It’s been painful.

But our data is shifting. Market clouds are fading … at least initially.

Market Clouds Are Fading

I had a great talk yesterday with a colleague about what it is that makes MAPsignals unique. And the main takeaway was this: we use data to cut through the noise. And let’s be frank, it’s noisy out there!

Headlines rage about out-of-control inflation and rising interest rates. Heck, some pundits are calling for 5+ rate hikes in 2022. The latest CPI printed this morning showed consumer inflation climbing an eye-popping 7.5%! That’s the biggest gain in 40 years.

To many, that means the stock world is ending!

But what if inflation is set to peak soon? What if supply constraints are going to ease in the future? My humble opinion believes that’s the case … I’ll save the reasoning for another writeup.

My job is to inform you with data. And right now, it’s showing positives. And this gets me excited.

Let me be clear: This is not the all-clear for stocks. But it is very encouraging. There’s real stock buying happening under the surface.

From where I sit, I believe the Big Money is looking forward … past the gloomy headlines of today and towards what’s coming in the future … better days.

And you know me, I like it when our data shows a different message than the headlines. So, let’s get to that now.

Market Clouds Are Fading

There’s a time to worry and there’s a time to worry less! Looking at data can clue you in on what’s happening under the surface of the market.

For weeks, we saw big selling. But the market clouds are fading. Stocks are actually getting bought.

Below are the daily buys and sells for stocks. Notice how selling evaporated and buyers are stepping in. Have a look:

Big Money Stocks Buys and Sells | Buyers this week

That’s right. The last 2 days have seen momentum pick up in a lot of stocks, especially small-caps. You can see the 2-day breakdown of buys and sells by market cap below:

big buying and selling by market cap

This is new data that follows nicely from last week’s message of shaking out the weak hands. I noted then how selling was drying up and that what I needed to see to get excited was buyers stepping up to the plate.

That’s what’s going on now.

And drilling down you can see where the juice is flowing: Discretionary, Industrials, Materials, and Communications.

Let’s check in on discretionary first. Yesterday (Wednesday) saw the most buying since November 16th:

discretionary vs XLY | MOST BUYING IN 2.5 MONTHS

Lots of high-quality travel and leisure names are ripping higher. To me that says the smart money is betting on a world less worried about COVID. And I agree with that logic.

Next, check out Industrials. Yesterday saw the most buys in over a month:

INDUSTRIAL VS XLI | MOST BUYS IN A MONTH

The names getting bought are containerships, machinery, and airlines. To me, this could mean the market sees a future where supply chain constraints are eased. If that’s the case, inflation could certainly cool. Wouldn’t that be a relief!

Looking at the data, market clouds are fading.

But let’s keep going. Materials are seeing buys too.

 

Materials vs XLB | MOST BUYS IN 3 WEEKS

Yep, companies with exposure to the agricultural space are on the radar of Big Money. Logically that makes sense given high commodity prices.

Finally, look at the communications group. It saw the most buys since August:

communications vs XLC | MOST BUYS SINCE AUGUST

This was so interesting to me since many of these stocks are wireless providers. That’s rarely an area on my radar. But when you see off the charts action, take notice! That’s one area where market clouds are fading.

Now, let me tie this all together.

Why It Pays to Buy Great Stocks on Pullbacks

The late January selloff was epic. If you recall, I laid out a game plan that said the market would bottom on February 11th. That date was made based on the historical average.

After a week of relentless selling, it usually takes 3 weeks for the market to trough out. Some lows happen within days, and some take over a month.

And while that date hits tomorrow, odds are that the market lows made on January 27th will hold up for now. But the other piece of that study had what was important: Major selling in stocks is a great opportunity to hunt for beaten down stocks.

I made the case then that it was a great time to go shopping. And so far, what’s happened since, falls right in line with historical returns.

As a reminder, here’s the forward 1-week to 1-year returns for the market post a market washout. It’s epically bullish across the board. I’ve circled the average expected gains for the S&P 500 after major selling in stocks:

data says to buy after massive selloffs

That, folks, is what we call the JUICE! I’ve filled in the 1-week and 2-week returns for the January selloff and as you can see, it turned out to be positive.

In my experience, it pays to buy great stocks on pullbacks.

So, what am I doing now that the market clouds are fading? I’m waiting for prior outlier stocks to start leading again. And they will!

Many of them are found on our MAP 50 report. These are companies that attract tons of big money and have stellar fundamentals. Once they start getting bought, it’ll be incredibly bullish.

I wake up each morning and check our portal for clues. And you can, too!

Let’s wrap up:

Here’s the bottom line: Buyers are slowly stepping into the market. As it stands, market clouds are fading … at least initially. This tells me there’s reason for more cheer and less fear.

The data is contradicting the gloomy headlines. To me, that’s opportunity. One way or the other, the market will eventually get back on firm footing.

My bet is the big money will be first in line when it happens.

***Finally, my latest video is out: Best Growth Stocks for February 2022. Check it out if you want to see how I find opportunity in these uncertain times. Data has a way of cutting through the noise!

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

Also, you can find our other videos here.

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 Growth Stocks for February 2022 Best Growth Stocks for February 2022
Next Post: Best ETFs to Buy Now for March 2022 Best ETFs to Buy Now for March 2022»

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

  • 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 573 808

MAPsignals - we map the markets.

mapsignals
mapsignals avatar; MAPsignals @mapsignals ·
16h 1528792004649418754

“Most people get interested in #stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.”
- #WarrenBuffett

Image for the Tweet beginning: “Most people get interested in Twitter feed image.
Reply on Twitter 1528792004649418754 Retweet on Twitter 1528792004649418754 1 Like on Twitter 1528792004649418754 2 Twitter 1528792004649418754
Load More...

Subscribe To Our YouTube Channel

MAPsignals

MAPsignals
#BestETFs #JasonBodner #ETFs
Investors are fearful. These are the best ETFs to buy now for June 2022. Our latest blog post is here: https://mapsignals.com/map-blog/

At MAPsignals, we turn to data to help us find opportunities. Scoring stocks is what we love to do. Scoring baskets of stocks allows us to score ETFs! 

Having an unemotional data-driven approach allows us to highlight funds rising to the top. This process is how we find the best ETFs for June 2022. 

From our standpoint, the best ETFs are ones that hold incredible stocks. 

We are seeing strong technical and fundamental scores in Utilities, Food & Beverage, Staples, and Energy ETFs.

Jason Bodner breaks down the following 5 Best Defensive ETFs to Buy Now:
2:46 iShares U.S. Energy ETF (IYE)
4:39 First Trust Natural Gas ETF (FCG)
6:21 First Trust Nasdaq Food & Beverage ETF (FTXG)
8:37 First Trust Utilities AlphaDEX Fund (FXU)
10:20 Consumer Staples Select Sector SPDR Fund (XLP)

Inside each of these ETFs are outlier stocks. Those are companies that outperform all others. Data and helps us find them!

In IYE, he breaks down high scoring stock, Occidental Petroleum Corporation (OXY)
Inside FCG, Jason showcases Coterra Energy Inc. (CTRA)
Then for FTXG, he finds Archer-Daniels-Midland Company (ADM)
For FXU, he focuses on NRG Energy, Inc. (NRG)
Finally for XLP, he showcases Costco Wholesale Corporation (COST)

Learn more at www.mapsignals.com
Remember this is not personal investment advice of any kind. This video is for entertainment purposes only. 

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

Disclosure: Jason holds long positions in COST in managed accounts at the time of filming.

Music by 5ilverfox:
https://open.spotify.com/artist/0UsYrSmSKlcFnvY6XAUOQp
https://soundcloud.com/5ilverfox
Best ETFs to Buy Now for June 2022 | ETF Database
YouTube Video UC4nueJix0bSLmZyilUuCVrQ_Ew7oNsoKzGM
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

✕
The Big Money Index White Paper is Here

Get your copy here and know where the Big Money is headed.

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}