To view this email as a web page, go [here.]( [Power Trends] Follow the Money â Hereâs Where Big Money Is Investing
After three agonizing months from August through October, the sharp and swift rally in stocks the last six weeks has been impressive⦠even dramatic.
A lot of investors have missed out on some of these gains because of the record amounts of cash sitting in money market funds. But money is clearly flowing into stocks. And thatâs perhaps the most important investing lesson Iâve learned: Everything comes down to the flow of money. According to Morgan Stanley, institutional investors account for around 90% of the daily trading volume on the Russell 3000 Index, which is the broadest major U.S. stock index. The problem is⦠a lot of this money flow is undetectable. Imagine being unaware of that much money flowing in or out of stocks, and basing your investment decisions on the visible 10% of trading volume? That puts most investors â especially individuals â at a big disadvantage. Institutions and big-time players turn to professionals like me, when I ran a trading desk, to complete their trades as quietly and secretly as possible so they donât impact prices. One of the most effective ways of doing that is using private networks like Dark Pools. A quick reminder: Iâll explain Dark Pools and how we can still track the flow of money in a Special Event this Wednesday, December 13, called The Dark Pool Summit. It gets underway at 8:00 p.m. Eastern time, and itâs completely free to attend. If youâd like to join us for this important informational session, all you need to do is RSVP. You can do that simply by clicking on the following link and youâll be automatically registered for The Dark Pool Summit: [Register me now](. When I left Wall Street, I created a system of my own by reverse engineering what I had pieced together during my time brokering these trades. I identified ways to tap into data that shows the trades placed by the big boys on Wall Street, and I can track nearly every dollar that changes hands on a day-to-day basis throughout our financial ecosystem. Letâs give you back an edge by looking at where Big Money has been going in this latest stock surge. RECOMMENDED LINK [Mark Your Calendar for Wednesday, December 13th](
Because thatâs when former Wall Street insider Jason Bodner is going to reveal decades of research on a market phenomenon called the Dark Pools â including how theyâve helped him spot dozens of stocks that have gone up 100% or more in months.
[Full details, here]( Tracking the Stealthy Big Money
Letâs start with the biggest trend of all, which is that Big Money is doing a lot more buying than selling right now. My proprietary Big Money Index (BMI) stands at 75.4 at the moment, which tells us that 75.4% of all unusual activity â the Big Money kinds of activity â are buys, leaving just 24.6% as sells. This is strikingly evident when you look at the signals themselves. Here is all of 2023, and Iâve circled the recent rally, where you can clearly see a lot more green bars (buy signals) than red bars (sell signals).
MAPsignals.com
That tall green bar in the circle came on Dec. 1, when my system picked up 60 times more buy signals than sell signals (303 to 5). So what kinds of stocks is Big Money flowing into? Look at the following chart and you see a clear answer â small- to midcap stocks.
MAPsignals.com
Since Nov. 1, 84% of all unusual buys my system detected were in stocks with market capitalizations between $500 million and $50 billion. Most of those â 50% of all signals â came in stocks valued between $5 billion and $50 billion. And drilling into the sector, we find another clear winner: technology. The Technology Select Sector SPDR (XLK) has surged nearly 15% in November and December. And once again, we see lots of green (buying) and hardly any red (selling).
MAPsignals.com
In fact, the four strongest sectors in my system right now are Technology, Discretionary, Industrials, and Financials. Money continues flowing into growth areas, which are the seeds of long-term bull markets. From there, I drill down into individual stocks and ETFs to see where the Big Money is flowing. For example, I currently recommend Dynatrace (DT) in my Quantum Edge Pro service. Itâs a software company that provides security for cloud computing, application monitoring, business analytics, automated fixes, and lots of other tech âstuff.â Shares are above our buy-in price, but weâre holding for more gains, in part because Big Money has shown a lot of interest in this stock throughout most of 2023.
MAPsignals.com
Being able to track Big Money and âgo with the flowâ puts you at a tremendous advantage over probably 99% of all other investors out there who, through no fault of their own, donât know what to look for. The data clearly shows that money is flowing into small- to medium-sized companies in the technology sector. We canât âbeat them,â so we might as well âjoin themâ on the ride higher. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodner's Power Trends P.S. Iâve been studying money flows and Dark Pools for decades (I even worked on Wall Street building Dark Pool systems myself), and I developed my system to track these massive money flows. According to a back test, my system would have beaten the market by a whopping 7-to-1 for decades, and its pinpointed dozens of winners that have gone on 100% plus runs in just a few months. This is the power of the Dark Pools. The power of knowing where the money is flowing. On Wednesday, December 13, at 8:00 p.m. Eastern, Iâm hosting that Special Event called The Dark Pool Summit to give you the full details. Itâs free, but you have to sign up in advance. I think youâll find what I have to say helpful and eye-opening. To RSVP, simply [click here and youâll be automatically registered](. Get Instant Access
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