Simple, Powerful, Profitable Truths VIEW IN BROWSER BY JASON BODNER, EDITOR, QUANTUM EDGE PRO Sometimes the simplest truths are also the most powerful… and profitable. Here’s one: The only thing that makes a stock go up is people buying it. A company can have the best balance sheet in the world. It can be trying to cure cancer and end world hunger at the same time. It can even be cheap all at the same time. If nobody’s buying, it’s not going up. That’s why money flows are the bedrock of my approach. Especially Big Money flows. I’m talking about the largest investors in the world who build positions worth millions or even billions of dollars. Here’s another simple, powerful truth: Big Money constitutes 70% to 90% of all daily trading volume. So it’s critical for investors to know: 1) whether Big Money is buying or selling overall and 2) what it’s buying or selling. If you miss that, you miss 80% or more of what’s actually happening in the market. Simple, powerful, profitable, and true. Recommended Link | | You’re invited to beta test a powerful new calendar for today’s tricky market. It shows you when the biggest stock jumps could occur – to the DAY – with 83% backtested accuracy. In 2024 alone, it would’ve pointed to gains of 250% in 38 days on (TTWO)… 101% in 10 days on (WSM)… 353% in 48 days on (AON) and more in studies. Try it yourself – right now – on 5,000 stocks. | | | Since the market’s April 8 bottom, money has poured into stocks. So much so that the flows have been historically lopsided in favor of buying. My Quantum Edge system’s algorithms show that inflows have outnumbered outflows by more than five to one since then. Of the unusual money flow signals we track – that is, the heavy-duty institutional flows – 83.6% are buys. You can see the bullish imbalance on the chart below. Those green bars that get taller and taller represent the number of Big Money inflow signals each trading day:  Source: MoneyFlows.com Those red bars that you can hardly see are the number of unusual outflows. Basically zilch. So, then, if Big Money is buying… what are they buying? More good news: The bulk of the inflows are going into smaller stocks and growth sectors like Technology, Discretionary, and Industrial. This is a “risk-on” investing characteristic of bull markets, not “hunker-down” investing or “wait-to-see-what-happens” investing. Since May 12, when President Trump first delayed tariffs, 83.5% of all inflow signals are in small- to mid-cap stocks – companies valued at $50 billion or less.  Source: MoneyFlows.com We see a similar appetite in the sectors. A whopping 67% of inflows have gone into growth sectors. Specifically: - Technology: 19.4%
- Financials: 18.6%
- Industrials: 14.4%
- Consumer Discretionary: 12.9%
The opposite is also true. We see hardly any buying in defensive sectors that investors run to when they’re afraid or uncertain. Utilities, which saw a lot of inflows earlier this year during the turmoil, had just 1.5% of the recorded buys. This data bodes extremely well for stocks. I expect some seasonal weakness in August and September, so volatility could tick up in the short term, but Big Money is leaning heavily into growth and not hedging for a collapse. To ride those Big Money waves, the strongest opportunities are growth stocks valued under $50 billion. Stocks like Celestica (CLS). It’s not a household name. It’s on the smaller side. And it’s been a killer stock. Celestica makes electronics components and manages supply chains for customers. It’s also recently expanded into high-growth themes like data centers, AI, and automation. I recommended CLS in Quantum Edge Pro last summer when its market cap was $6.4 billion. Share prices have surged 276% in that time, lifting the valuation to $25 billion. But that’s still in the most active buying zone right now. I highlight CLS because it has been a huge winner since the April 8 lows, soaring 194% in less than four months. Big Money started accumulating shares in unusually large fashion on May 14 when my Quantum Edge system picked up the first inflow signal. Nine more have followed, including Monday and Tuesday.  Source: MoneyFlows.com Tuesday was especially notable because the heavy buying – 12 times average daily volume – came on a 16.5% shot higher after Celestica beat earnings and sales expectations and raised full-year guidance – the sought-after “double beat and raise” that often lights a fire under stocks. Shares have long exceeded my initial recommended buy price, so we’re riding the big gains higher. I will say that CLS’s Quantum Score is 75.9, which is still in the optimal zone that gives it a high probability of future upside.  Source: TradeSmith Finance The soaring stock price has bumped the Technical Score up to 85.3, which is not yet overbought but getting close. We may see a fantastic buying opportunity in the coming weeks if CLS pulls back in seasonal weakness or even a natural pause after such a big run. Celestica has all the characteristics I look for that make higher prices likely – strong fundamentals, strong technicals, and those all-important Big Money inflows. I rely on these data points in my own investing and in Quantum Edge Pro, where we focus on smaller stocks with bigger potential. And that’s what’s appealing about Celestica right now. It is where the Big Money is flowing in terms of market capitalization and sectors, providing even more juice for bigger profits in the future. Talk soon, 
Jason Bodner Editor, Quantum Edge Pro P.S. I can’t overstate the value in accurately tracking Big Money inflows and outflows. Wall Street pays good money for your buy and sell order information and uses it to their advantage. Tracking Big Money flows turns this around and levels the playing field. You’ll be hearing more about this shortly from TradeSmith CEO Keith Kaplan – including how you can get in front in front of billions of dollars of institutional money. Stay tuned! |
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