Money is Chasing High-Quality Tech Stocks
There’s a lot of excitement in the air.
The Trump administration released the Stargate project, underscoring a commitment for the US to lead the A.I. revolution.
It should come as no surprise that money is chasing high-quality Tech stocks.
MAPsignals has been bullish in the face of so much negativity lately:
- Investors soured on stocks due to high interest rates
- They told us inflation would sideline equities
- And how a strong dollar was surely to keep equities in check
While we aren’t always right, we have an edge when the going gets tough. We have data to help light the path.
Today, we’ll look back on some of our recent bullish calls and see where things stand. Then I’ll offer 2 powerful stocks set to ride the recent A.I. tailwind.
Big bets are being placed in January.
The Big Money Index is Now Charging Higher
Always look backwards to see the future. Data can flip fast when markets reach rare pain points.
Our 2 most recent market calls prefaced the new bullish behavior of the Big Money Index (BMI). Let’s recap those.
One month ago, the media was scaremongering about how the Dow Jones Industrial Average (DJIA) fell 9 days in a row, leading many to believe equities were doomed.
We offered the opposite conclusion. We saw an ultra-rare oversold undefeated signal. As a reminder, 6 and 12-months after a 9-day string of losses, the Dow has never been lower since 1942:
One look at the chart shows how that drawdown appears to have been a buyable dip:
This is one part of the bullish Big Money Index narrative happening today. The bigger signal came last week, when we pounded the table to buy stocks because the BMI was plummeting.
Catching a falling knife is never advised, unless there’s powerful evidence to do so. A BMI below 37% tends to be a great time to load up on high-quality stocks.
Below is a reminder from that piece of how small- and mid-caps tend to rally soon after this setup:
Hopefully a few of you are riding equities higher with this signal. Below shows how the BMI has now put in a low and is marching higher.
One major reason our data has a change of character is simple: Money is chasing high-quality tech stocks.
Below shows this beautifully. Dozens of Technology stocks are seeing powerful inflows, which has sent the group flying.
Notice how the Technology Select Sector SPDR Fund (XLK) ramped as capital is being put to work:
Let’s recap where things stand:
- The Dow Jones Industrial Average is poised to keep climbing
- Our BMI has now bottomed
- And we can easily spot the money chasing high-quality tech stocks
All that’s left to do is outline 2 top-ranked stocks that institutions love! These are names found on our weekly all-star Top 20 list.
Money is Chasing High-Quality Tech Stocks
The big money is made betting on outlier stocks. In our last PRO update on January 15th, our 2 A.I. stocks outlined are flying.