Someone Always Knows Something – The Importance of Tracking Big Money I’m going to get in trouble for this. My next statement will assuredly make me “unpopular” in my old Wall Street circles, but I was never much for popularity anyway. So here goes… The market is “rigged.” Rigged to favor those in the know. Rigged to benefit a select few. And ultimately rigged against the masses. I’m not saying it’s illegally rigged, but it’s still rigged. This is an inflammatory topic that recently came up in a meeting with my editors, so today, I want to show you a few examples of just how the market is rigged… and introduce you to “the man” behind it. Stocks Move Before Big Events At our meeting earlier this week, we were talking about my Quantum Edge stock-picking system. It has a win rate of roughly 70%, with wins bigger than losses and market outperformance for over 30 years. In fact, one model strategy has beaten the S&P 500 7-1. During that meeting, my managing editor said: “The system is phenomenal. In fact, I’m going over earnings now, and a bunch of stocks saw big money inflows before they reported earnings!” Here’s one example of a stock he was talking about. (I’ve blurred the ticker in fairness to paying subscribers who hold it in their portfolios). Source: MAPsignals.com Those green lines represent our unique X-ray vision. We can “see” below the surface to unusually large money flows moving into stocks. I marked the three Big Money buy signals before earnings, and then the 14% pop after earnings. I couldn’t begin to count the number of times I’ve seen Big Money buy signals ahead a major announcement. So, I replied to my editor’s comment above and said… Doesn’t money moving in before earnings strike you as unusual? Like someone knew something? That sounds sinister, I know, but it’s really not. It’s just how things work in life and the stock market. Say I’m the CEO of a public company. My best friend runs a hedge fund, and we meet to play pickleball. He may want to know certain things I can’t legally tell him, and I may want to tell him certain things I’m not allowed to. But with a wink, a nod, or voice inflection, we may find a way to communicate without communicating. Wink. Wink. This is the nameless, faceless concept of “The Man” … or “Mr. Market” if you prefer. The Man always knows something. He knows when stocks are about to explode, and he knows when stocks are about to tank. And he buys stocks that are about to soar, and dumps stocks about to burn. That’s why you need to ride The Man’s coattails to increase your odds of succeeding and your profit potential. Tracking In-the-Know Money Let’s go back about six years to a little-known pharmaceutical company called Bioverativ, which traded under the symbol BIVV. The graphics in my system looked different then, but it’s still easy to see what’s going on in the chart below. BIVV was a somewhat sleepy stock, until it showed up one day in my Quantum Edge system with unusually large buying signals. You can see the two early signals (green bars) below. Someone knew something, and someone was loading up on shares. Sure enough, just days later the huge French drugmaker Sanofi (SNY) announced it was buying BIVV – at almost double what shares were trading for. “The Man” is those two smaller green bars ahead of the big jump on the announcement. Yes, it could have been a coincidence that an unusual amount of money poured into the stock just before it got acquired. But I’ve seen this happen enough times through the years to bet that wasn’t the case. One of the most ghoulish and sad cases was that of airline stocks prior to the 9/11 terrorist attacks. Unusual trading ahead in the days leading up to the attacks is well documented, as large volumes of puts were being bought on airline stocks. That included American Airlines (AAL) and United Airlines (UAL), whose planes were hijacked by the terrorists. When investors buy put options, they expect share prices to fall. Prices of course plummeted after the attacks, and at least a few nameless, faceless investors made a lot of money. I don’t know who, and I’m not interested in conspiracy theories, but I will say speculation was rampant that even Osama Bin Laden profited off the very attacks he planned. There are countless other instances where The Man knows things. Taken across nearly 10,000 publicly traded stocks, it probably happens to some degree every single day. I see it a lot during earnings reporting seasons like we’re in right now. Here’s another example: Stocks get added and removed from indexes all the time. Yet somehow, someone always knows beforehand and “magically” buys the stocks being added and shorts the stocks getting dropped. I could go on and on, but you get the point: The public is always the last to know. Individuals are always behind The Man. But they don’t have to be. I took my experience facilitating “The Man’s” trades and turned it into my life’s mission to identify when he is on the move, even has he tries to be secretive about it. I used my unique vantage point to script algorithms that key in on when stocks starting to trade unusually. You can’t see these money flows with the naked eye, but you can get an X-ray of what’s going on under the surface when you know the anatomy of the market. Having reliable information on when the biggest money managers in the world make their moves is a tremendously powerful advantage. I honestly don’t know of any other system that can do what mine does. Everyone thinks stocks go up and down based on earnings, news, or events. Those are important, but as we saw above, what really matters is where the money is flowing. It may flow before anything officially happens. There’s no way we’ll have access to the same kind of information as The Man, but we can sure as heck find out where he’s putting his money and make big profits of our own. Talk soon, Jason Bodner Editor, Jason Bodnerâs Power Trends P.S. My research shows that institutions move more than $400 billion through the stock markets every single day, and Big Money’s algorithms determine where the vast bulk of that money goes. That’s why I designed my Quantum Edge system… to track these massive amounts of money right down to the ticker symbol. You can get more details in a special video briefing, in which I also tell you about an AI stock (including its ticker symbol) that is instrumental in powering the whole U.S. economy. Click here now for all of the details and to gain access to my complete strategy and learn more about this exciting stock. |