2020年4月6日星期一

This Short-Term Bottom Isn’t an All-Clear Signal Yet

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This Short-Term Bottom Isn’t an All-Clear Signal Yet

By Jason Bodner, editor, Palm Beach Insider

It’s an unfortunate fact: Bad news sells. Good news doesn’t.

People simply tune in more to crazy, shocking stories… tragedies… and scandals.

And with the coronavirus pandemic, there’s plenty to be negative about.

Worldwide, there are over 1.2 million cases and over 70,000 deaths. Global markets have been volatile. And in the U.S., unemployment has hit record-high levels.

But here’s the thing: Negative emotions hamper our decision-making (and our physical health).

So whether it’s hoarding toilet paper or massive selling in the markets… the panic we’re seeing today isn’t rational.

As my wife likes to say, “If you remove the emotion, you’re just left with the facts.”

That’s why, when it comes to the markets, I go strictly by the data and numbers. I have no room for feelings.

So today, I’ll show you the positive news the data is signaling now – even if it’s not popular with the crowds…

Things Are Looking Up

As you know, to look at the numbers, I developed my own “unbeatable” stock-picking system.

I’ve used my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – to make sure it’s highly accurate, comprehensive, and effective.

It scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. It also looks for the buying and selling movements of big-money investors in the broad market.

Normally, we turn to my system to identify the best sector the big money is piling into to follow it to profits. But with the unprecedented volatility and panic in the market, we’ve seen far more selling than buying lately.

So last Monday, we took a look at the big-money selling in the market sectors.

Remember, the Global Industry Classification Standard (GICS) sorts the 11 sectors making up the S&P 500. Each sector is broken down by industry group, industry, and sub-industry.

The table below shows the big-money sell signals my system picked up in the 11 GICS sectors last week compared to today…

Sector

Stocks Seeing Big-Money Selling Last Week

Stocks Seeing Big-Money Selling Today

Utilities

72%

0%

Financials

55%

6%

Communication Services

46%

4%

Consumer Staples

43%

13%

Real Estate

43%

16%

Industrials

40%

6%

Materials

39%

0%

Health Care

31%

2%

Consumer Discretionary

28%

14%

Energy

28%

6%

Information Technology

11%

3%

As you can see, last week, 10 of the 11 sectors were seeing extreme selling (greater than 25%). But today, none of them are seeing extreme selling.

So while selling is still there, it’s dramatically less.

Now, let’s turn to my big-money index (BMI), which tracks the ratio of big-money buying and selling in the markets.

Last week, it hit 9%. And since I’ve started tracking this data in 2012, we’d never been that oversold. Today, however, the BMI level is increasing…

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Again, this means selling is slowing and buying is trickling in. In fact, today, all the major indexes opened between 3% and 4% higher.

All this data implies that the largest-scale selling (through hedge fund liquidations) has passed us. We’ve likely hit the near-term bottom.

And this is exactly the money-making opportunity I’ve been waiting over a decade for…

It’s Time to Prepare for the Great Reset

This is the Great Reset in play. As I told you last Wednesday, the market eventually hits a bottom during every crash.

But the troughs don’t usually last that long. According to my research, the market rebounds an average of 13% within the next year. Some stocks rise even higher from this wreck… like phoenixes.

So the best time to buy is during or just shortly after the market’s deeply oversold period – like where we’re at now.

However, we’re still seeing a lot of volatility. It’s important to buy the dips and not the “face-rippers” we’ll likely see for a little while longer.

Remember, this isn’t an all-clear signal. We could possibly retest the lows. But the numbers are suggesting otherwise.

The market carnage is significantly less compared to just a week ago. And that is positive news in a sea of red – even if it might not be a popular opinion right now. (For instance, just take a look at all the bears in the comment section of this interview I recently did.)

This slowing of selling is giving us a light at the end of the tunnel. So don’t glue yourself to the news. It’s meant to fan the negative flames of fear.

Just hang in there. Take a walk instead. Enjoy your family. Do things that bring you joy. And remember, we’ll get through this – together.

Patience and process!

Jason Bodner
Editor, Palm Beach Insider

P.S. It’s in times of great pessimism – like we’ve been in during this pandemic – in which truly life-changing opportunities present themselves.

That’s why I’m paying close attention to the big-money buying and selling cycles for you in Palm Beach Insider. You see, this bear market phase is the best time to buy high-quality stocks on sale.

So you’ll definitely want to stay tuned to know when we’re in short-term bottoms. Plus, I’ll be using my “unbeatable” stock-picking system to identify the next flock of phoenix stocks that’ll rocket higher during the market’s rebound.

Learn how to join me and my subscribers in making phenomenal gains – potentially an average 2,505% (trough to peak) – right here.


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