To view this email as a web page, go [here.]( [Power Trends] We Just got an Ultra Rare Signal â Youâre Going to Like What It Means
I donât blame you if youâre concerned about the stock market. Today was a little better, but itâs been a painful two weeks for a lot of folks. All three major indexes were down six days in a row through Friday, with the Nasdaq losing 5.5% in that time. Nvidia (NVDA), the artificial intelligence stock that traded like it would never go down for much of the last two years, sank 10% on Friday alone. It was the stockâs biggest down day ever, and brought its valuation under $2 trillion. Super Micro Computer (SMCI), the other red hot artificial intelligence stock, got hit even harder. It fell 23% on Friday⦠for the awful sin of scheduling its earnings report. Thatâs a bit of an oversimplification, but not much of one. SMCI has preannounced positive results seven of the last eight quarters, so in a skittish environment, investors got nervous that no preannouncement might mean no blowout report â which amid the hype looks like the only acceptable result. Itâs crazy, of course, but Iâll let you in on a couple of data secrets about SMCI. First, even with that 23% drop on Friday, my [Quantum Edge system]( did not detect a Big Money sell signal. In fact, SMCIâs last unusual selling signal was way back in October of 2018. The last 12 months have nothing but buying (green bars) â and lots of it.
MAPsignals.com
Multiple factors determine what constitutes a sell signal, but the absence of one on Friday tells us something. As one of the hottest stocks of 2024, a lot of individual investors piled into SMCI, and it looks as if they are the ones who bailed. Super Micro remains a great company with a lot of potential as its high-performance, high-efficiency servers are designed for artificial intelligence applications. In my [Quantum Edge Pro]( service, weâve already locked in a double, and we still have one-third of our shares. At this point, the bigger question for me is not when to sell the rest of our shares but when to buy again. Iâm watching the data closely and will let my subscribers know when the time is right. But Iâm looking to buy more than just SMCI. This healthy and much-needed pullback is a good time to shop for quality stocks at a discount. These are the stocks with the Quantum Edge trifecta of superior fundamentals, strong technicals, and Big Money flowing in. Pullbacks are the best time to buy these best-of-the-best stocks anyway, but after an extremely rare data signal that just triggered, now looks like an especially opportune time to get ready for whatâs coming. RECOMMENDED LINK [Jeff Bezosâs Plan Exposed](
Located 30 miles from Baltimore â Jeff Bezos has been quietly investing in one tiny company thatâs ground zero of a technology revolution thatâs going to change everything. Bank of America said the technology would be, âBigger than fire and bigger than all the revolutions that humanity has seen.â [And for investors who get in now profits could be massive â click here for full story](. Ultra-Rare Signal Indicates Big Opportunities Ahead
I am exceptionally bullish about stocks over the long term, but even I was surprised at what I found analyzing recent data. I created my Big Money Index (BMI) as part of my [Quantum Edge system]( and through years of live data and back testing, it is the most reliable market indicator I know of. Itâs also a fantastic proxy for unusual money flows â the money that moves stocks. Itâs unique and stunningly accurate at pinpointing the marketâs pivot points. Hereâs the rare signal I spotted: The BMI and SPDR S&P 500 ETF Trust (SPY) recently fell in tandem for five consecutive days. That doesnât sound like that big of a deal. You would think it happens fairly often, but itâs the complete opposite. My data goes back to 1990 â nearly 33.5 years or 8,614 trading days. I dug deep into the numbers and found only 39 instances when went the SPY and BMI fell together for five straight days or more. Thatâs a super-rare 0.5% of the time. Or, flip it around: It does not happen 99.5% of the time. Now the good part: After these almost unheard of occurrences, stocks tend to rise. The results are awesome. Looking ahead one month, three months, six months, nine months, and one and two years later, the S&P 500 is significantly higher â 11.3% after one year and 24.3% after two years. Stocks moved higher a stunning 80% of the time on average.
The data says to ride through this overdue volatility. Donât sell great stocks you already own, and even more importantly, be on the lookout for high-quality stocks going on forced sale. Thatâs what Iâm doing for my readers, and [I can do it for you, too](. Capitulation may be near, or it may take a while longer to play out. Either way, this super-rare signal says we should look to buy when others are willing to sell us great stocks at discounted prices. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodnerâs Power Trends Get Instant Access
Click to read these free reports and automatically sign up for research throughout the week. [The Infinite Income Manifesto]( [3 Stocks to Build Your Wealth in 2024]( [5 Unapologetically Profitable Stocks for 2024]( [Download now on the Apple Store](
[Get It On Google Play]( [866.385.2076](tel:+866-385-2076) | support@tradesmith.com
©2024 TradeSmith, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of TradeSmith, LLC. This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as researchers and writers. Our work may contain errors and should not be considered personalized investment advice. TradeSmith, LLC does not issue securities recommendations, and no discussion of a particular stock(s) should be interpreted as such. Past, simulated, and/or hypothetical performance of any strategy published by TradeSmith, LLC should not be interpreted as representational of future returns. You shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. TradeSmith P.O. Box 340087 Tampa, FL 33694 [Terms of Use]( [Privacy Policy]( To unsubscribe or change your email preferences, please [click here](. [tradesmith logo] This email was sent to: {EMAIL} This email was sent by: TradeSmith
PO Box 3039, Spring Hill, FL, 34611, US We respect your right to privacy - [view our policy](