A Funeral for the Bears

There’s no reason not to buy… [TradeSmith Daily]( A Funeral for the Bears By Lucas Downey, Contributing Editor, TradeSmith Daily When there’s zero reason for stocks to rise… start buying. That’s one of the most valuable mantras I learned working on Wall Street. As soon as everyone’s thrown in the towel, then and only then can a new uptrend emerge. That’s exactly the setup investors face today. We’ve reached extreme oversold conditions. History points to a massive rally around the corner. This isn’t a “gut feel” thing. I have proof. That proof is the Big Money Index (BMI). It’s a real-time indicator of institutional appetite for stocks. History shows that when institutional money flows into stocks, they rise. When that money exits, stocks collapse. However, there are rare tipping points when selling pressure is so immense, it triggers a violent rally. From what I’m seeing, we’re on the precipice of one of those rallies. Bears have had a great end to the summer, their jowls bloody with prey… But it’s time for them to crawl into their caves and start a long hibernation. I’m as bullish as I’ve been all year long. And today, I’ll show why you should be, too. RECOMMENDED LINK [System Issues Red-Hot A.I. Alert...]( A powerful stock-picking system that a Georgetown study found gives its users an “important economic advantage” has just identified a “second wave” of A.I. stocks ready to pop. [See the time-sensitive details here]( A Big Money Tsunami Below is a 1-year chart of the BMI. The yellow line is a moving average of individual stocks getting bought and sold. Notice how it oscillates moving higher and lower within upper and lower bands (red and green dashed horizontal lines). Red circles indicate overbought conditions. We saw the last “red light” on August 1, near the peak in the S&P 500. Notice how the yellow line has fallen since then, indicating institutional money was racing out of stocks. As this happened, markets came under pressure. But now the selling has gotten too intense, signaling a climax… and a bottom. You know how just before a massive tsunami hits, the tide goes out further and further? This is just like that. The tide of institutional capital has gone far out to sea… but it’s about to come flooding back in spectacular fashion. Best Time to Buy Since October ‘22 It may not feel like a great time to buy stocks right now. But the last time we saw conditions like this was mid-October 2022. Just as everyone gave up, the market began its march higher… to the disbelief of the crowd. I believe the same setup is here today. The BMI is constructed on a 25-day moving average of the total number of buy and sell signals for individual stocks. The green zone, where we are today, represents a buy ratio of 25%. That means over the past five weeks, there’ve been four sell signals for every buy signal. To give you perspective on the magnitude of selling we’re witnessing, here’s a view of buys and sells broken out by market cap since September: That’s a ton of red! Incredibly, companies with market caps below $50B saw 533 buy signals vs. 2,654 sell signals. That’s roughly 8 sells for every buy. Like I said earlier, we only see conditions like this during extreme risk-off periods. I’m talking about events like: - The high-inflation bear market of 2022 - The COVID-19 crash - The 2018 Fed rate hikes If you believe those were not great times to buy stocks on sale, you’d be mistaken. History shows that you want to be scooping up stocks with both hands in times like this. RECOMMENDED LINK [What price will TSLA, NVDA, and APPL be in a month?]( TradeSmith, one of the world’s most cutting-edge financial tech companies, just launched a breakthrough, new A.I. algorithm called An-E... and showed many of its past predictions and just how accurate they were (often precise to within a tenth of a percent). The company also showed what An-E's predictions were for three of the most widely held stocks on the market one-month into the future. [You can see what those predictions are by going here]( On average going back to 1990, one month after we get an oversold signal on the BMI, the S&P 500 gains 3.6%. Six months later, markets rip 9.1%. After a year, stocks cruise 15.1% higher: When you couple this extremely bullish signal with [historically strong Q4 rallies]( bears might need more than a hibernation… They might need a funeral. R.I.P. bears! Look, I’ve been pounding the table for over a month to get ready for a powerful rally. It’s in these fear-driven moments when explosive up moves begin. Don’t buy into the fearful media playbook. Just buy amazing stocks at amazing prices! If you’re wondering which areas of the market are primed to explode higher, [check out Quantum Edge Pro](. Jason Bodner is prepping his buy list now for subscribers. A rally is coming. Don’t miss it! Regards, Lucas Downey Contributing Editor, TradeSmith Daily P.S. You should know today’s the final day to join [Keith Kaplan’s incredible options income strategy]( and secure his two-pronged, ironclad guarantee. If you sign up before midnight tonight, Keith’s guaranteeing that your first trade will be profitable or you’ll get a full cash refund… And that a year from now, the Constant Cash Flow strategy will post a win rate of at least 97% or you’ll get a second full year of the strategy 100% free. As Michael Salvatore pointed out Friday, [right now is a great time to be a put seller](. We’re about to exit a period of extreme oversold conditions. That means put option premiums are ripe for the taking… and a market rebound will increase the odds they pay out. Like I said, Keith’s offer stands until midnight tonight. [Go here before then to get all the details and make your decision.]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [3 Stocks That Could Triple This Year]( [Download now on the Apple Store]( [Get It On Google Play]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com [Request Customer Service](mailto:support@tradesmith.com) ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. 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