How To Visualize A Market Dip

So that got me thinking. If September is usually negative, is there a way to capture the dip? Well, here’s my way of visualizing a market dip.

I’m all about data…especially Big Money data. My favorite indicator is the Big Money Index. It’s my way to tracking what big institutions are likely doing in stocks.

When it falls, expect red markets. When it rises, get the rally hats out:

Chart, line chart

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Source: www.mapsignals.com

You can see that it’s in an uptrend because summer-selling has been slowing.

Inside of the BMI are the daily buys and sells. Below you can see how buying has been increasing lately. That’s why the BMI is perking higher. I’ve circled the increased buying:

Chart, histogram

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Source: www.mapsignals.com

But since this article is all about a market dip, look how using MAPsignals data can help us visualize a market dip.

Below is the same chart, but I’ve isolated those big red days. Those are days when there’s a lot of selling in stocks. Look:

Chart, histogram

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Source: www.mapsignals.com

Notice how each of those big red sticks marks the low for the market? That’s the S&P 500 (SPY ETF) I’m using as the market gauge.

But more importantly, look at the 2 week forward performance of SPY after those big sell days. It’s mega juice:

Table

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Source: MAPsignals, FactSet

That’s how I visualize a market dip with data. But what’s cool is we can see the same similar patterns in ETFs. Below are the daily Big Money buys and sells of ETFs according to MAPsignals. I’ve outlined big red sell days:

Chart, histogram

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Source: MAPsignals.com

Visually it looks like the stock sells chart. And for good measure, here’s the 2-week return for all of those instances above.

Table

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Source: MAPsignals, FactSet

Talk about a cool way to see a market dip through the eyes of data.

Here’s the bottom line:

Investors and traders like to talk about buying the dip. And it’s a real phenomenon. Recently, we can see that big sell days for stocks and ETFs have been dips to buy. Will that be the case in the future? Only time will tell.

But, one thing should be apparent. Data can be helpful to a solid trading process.

Disclosure: the author holds no position in SPY, QQQ, DIA, or IWM at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

Keysight Stock Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Keysight has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares for years.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals KEYS has made the last year.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram

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Source: www.mapsignals.com

In 2021, the stock has attracted 17 Big Money buy signals and zero sell signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • 1-year outperformance vs. VanEck Semiconductor ETF (+33.83% vs. SMH)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Keysight has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+10.21%)
  • 3-year earnings growth rate (+110.51%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, Keysight has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock saw buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

KEYS has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 1/15/2019, it’s up 162%. The blue bars below show the times that Keysight was a top pick:

Chart, histogram

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Source: www.mapsignals.com

It’s been an all-star stock for years according to the MAPsignals process. I wouldn’t be surprised if KEYS makes additional appearances in the years to come. Let’s tie this all together.

Keysight continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Keysight rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in KEYS at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Best Growth Stocks October 2021

Oftentimes, that can be institutional activity. We’ll go over what that looks like in a bit. But, the 5 stocks we see as long-term candidates are NFLX, PYPL, UPST, ASML, & TSLA.

For MAPsignals, we believe that Big Money trading can alert you to the forward fundamental picture of a stock. We want the odds on our side when looking for the highest quality stocks.

Up first is Netflix, Inc. (NFLX), which is the leader in on-demand video.

Strong growth candidates tend to have strong performance. Check out NFLX:

  • YTD performance (+16.68%)
  • Historical big money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals Netflix has made the past few years.

Blue bars are showing that NFLX was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, Netflix’s revenue numbers have been strong:

  • 3-year sales growth rate (+28.9%)
  • 3-year earnings growth rate (+71.92%)

Next up is PayPal Holdings, Inc. (PYPL), which is a leading digital payments firm.

Check out these technicals for PYPL:

  • YTD performance (+25.2%)
  • Historical big money signals

Let’s look long-term. These are the top buy signals PayPal has made since 2015. Clearly the Big Money has been consistent for years:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Let’s look under the hood. As you can see, PayPal has grown revenues massively:

  • 3-year sales growth rate = +17.96%
  • 3-year earnings growth rate = +36.06%

Another growth name is Upstart, Inc. (UPST), which is a lending platform.

Strong candidates for growth usually have big money buying the shares. Upstart has that. Also, the stock has been a rocket:

  • YTD performance (+544%)
  • Recent Big Money signals

Below are the big money signals Upstart has made since 2019. It’s a newer listing with mega juice!

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Now let’s look under the hood. Upstart’s sales growth is impressive. I expect more growth in the coming years:

  • 3-year sales growth rate = +60.28%
  • 3-year earnings growth rate = +18.32%

Number 4 on the list is ASML Holding NV ADR (ASML), which is a huge semiconductor firm.

Here are the technicals important to me:

  • YTD performance (+77.2%)
  • Historical big money signals

Below are the big money signals for ASML since 2015:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Let’s look under the hood. ASML has been growing nicely:

  • 3-year sales growth rate = +16.45%
  • 3-year earnings growth rate = +21.9%

Our last growth candidate is Tesla, Inc. (TSLA), which is the leader in the EV space.

Check out these technicals:

  • YTD performance (+6.7%)
  • Historical big money signals

Tesla is just now starting to crank with strong fundamentals, that’s why there’s few Big Money signals:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Now look at these juicy growth numbers:

  • 3-year sales growth rate = +41.78%
  • 3-year earnings growth rate = +33.26%

The Bottom Line

NFLX, PYPL, UPST, ASML, & TSLA represent top growth stocks for October 2021. Strong fundamentals and big money buy signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in NFLX, PYPL, & TSLA in personal accounts and long positions in NFLX, PYPL, & UPST in managed accounts. He holds no positions in ASML at the time of publication.

Investment Research Disclaimer

Netflix Stock Attracts Big Money

Netflix, Inc. (NFLX) has been gaining steam in 2021, jumping +9%. In two years, shares are up a hefty 104%. And it could be setting up for more highs soon. One likely reason is due to Big Money lifting the stock.

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Netflix has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares for years.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals NFLX has made the last year.

The last few days have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In 2021, the stock has attracted 5 Big Money buy signals. The only sell signal came back in May. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • 3-month outperformance vs. NASDAQ ETF (+4.9% vs. QQQ)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Netflix has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+28.9%)
  • 3-year earnings growth rate (+71.92%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, Netflix has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock saw buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NFLX has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 4/20/2015, it’s up 628%. The blue bars below show the times that Netflix was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

It’s been an all-star stock for years according to the MAPsignals process. I wouldn’t be surprised if NFLX makes additional appearances in the years to come. Let’s tie this all together.

Netflix continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Netflix rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds long positions in NFLX in personal and managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

History Says Stocks Are Ready To Roar

Well, I did a deeper dive over the weekend to see what we can expect going forward. And it’s not bearish. So, put the bear suits away.

Before I share some market history, let’s first check in on my favorite indicator: the Big Money Index. It’s been ramping in a big way the last few weeks.

When it falls, expect markets to fall. When it rises like now, lean long:

Graphical user interface

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Source: www.mapsignals.com

The BMI is nearing 60%. The important data point is how it’s now in an uptrend. And small-caps are helping out. They went from getting sold to getting bought.

Let me show you what I mean. Below are the daily buys and sells of stocks that I look at. These are the days that make up the Big Money Index. Keep in mind, the BMI is created by a 25-day moving average of buys and sells.

But, check out how selling in stocks has slowed dramatically. The red bars have evaporated:

Chart, histogram

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Source: www.mapsignals.com

With the BMI heading north and sellers taking a vacation, that’s quite a bullish setup. But, what does history have to say about now?

Well, you decide. Below are the monthly returns for September – December from 1990 – 2020. September is historically a red month:

Table

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Source: FactSet

Now, look at the final 3 months: October – December. The Santa Claus rally is real:

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Source: FactSet

So the setup is this: Big Money activity is decidedly bullish & history is too. If you’re a bull, smile 😊

Here’s the bottom line:

The Big Money Index is tracking higher as stock buyers step in. The small-cap selloff has slowed dramatically. But maybe even more important is that we are entering the market green zone. The final months of the year are friendly for the bulls. So, put that bear suit away.

Disclosure: the author holds no position in SPY, QQQ, DIA, or IWM at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

https://mapsignals.com/contact/

 

CrowdStrike Stock Through The Lens Of Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And CrowdStrike has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals CRWD has made the last year.

The last few days have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has attracted 11 Big Money buy signals. And just as impressive, there’ve been zero sell signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • YTD outperformance vs. technology ETF (+11.21% vs. XLK)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, CrowdStrike has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+94.9%)
  • 3-year earnings growth rate (+14.07%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, CrowdStrike has been a top-rated stock at my research firm, MAPsignals, earlier this year. That means the stock had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

CRWD has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 12/29/2020, it’s up 37. The blue bar below shows the 1 time that CrowdStrike was a top pick:

Chart, histogram

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Source: www.mapsignals.com

It’s a newcomer to the MAPsignals process. I wouldn’t be surprised if CRWD makes additional appearances in the years to come. Let’s tie this all together.

CrowdStrike continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The CrowdStrike rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in CRWD at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

Big Money Index Is Finally Rising

And there’s reason to believe that’ll be the case in 2021. I’ll show you 2 reasons why I think stocks are setting up for more highs in the coming weeks and months.

First, we can see that the Big Money Index is starting to rise. As a reminder, the Big Money Index tracks big buying and selling in stocks. When the index rises, markets tend to head higher.

When it falls, more stocks are getting sold compared to those getting bought. Look how it’s started to ramp the last few days:

Graphical user interface, chartDescription automatically generated
Source: www.mapsignals.com

Many small-cap companies were holding the BMI back for well over a month. I discussed this last week, as I told how there’s likely value in the smaller stock space.

Well, many of those sellers have disappeared. And a cool way to see that is in our ETF Buys & Sells Chart. Below, the green bars are the number of ETFs getting bought with Big Money. The red bars are sells.

Look how Friday had a big green bar. This type of action is helping lift the BMI:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

With the BMI ramping and ETFs seeing green action, that’s bullish in the short-term. But remember I said there were 2 reasons that pointed to higher market prices.

And the 2nd data point is history. Below, I pulled September – December returns for the market (SPY ETF) going back 25 years. Yes, it tends to be very bullish:

TableDescription automatically generated with medium confidence
Source: www.mapsignals.com

It’s hard to bet against history and positive signs in the Big Money data.

Here’s the bottom line:

Small-cap stocks were weighing down the Big Money Index. Much of that selling looks to be behind us for now. With the BMI starting to rise, and the historically bullish last four months of the year starting soon, signs point to a bullish setup in the weeks and months ahead.

Disclosure: the author holds no position in SPY, QQQ, DIA, or IWM at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

Best Dividend Stocks September 2021

The hallmark way I go about finding the best dividend stocks…the outliers, is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are LOW, MSFT, RMD, EXR, & ABBV.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Lowe’s Companies Inc. (LOW), which is a large home improvements retailer. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1 month performance (+2.6%)
  • Historical Big Money buy signals

Below are the Big Money signals Lowe’s has made since 2015. Blue bars are showing that LOW was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

ChartDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Lowe’s has a strong dividend history:

  • 3-year dividend growth rate (+13.3%)
  • Current dividend per share = .80
  • Forward yield = 1.57%
  • 3-year earnings growth rate (+34.66%)

Next up is Microsoft Corp. (MSFT), which is a leader in software, cloud computing, and gaming. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at recent performance:

  • 1-month performance (+5.37%)
  • Historical big money signals

Below are the big money signals that Microsoft has made since 2015. I expect more buy signals in the years to come.

Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Microsoft has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+9.9%)
  • Current dividend per share = .56
  • Forward yield = .74%
  • 3-year earnings growth rate (+63.68%)

Next, I’m looking at ResMed, Inc. (RMD), which is a medical device company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, I look for strong recent performance:

  • 1 month performance (+10.18%)
  • Historical Big Money signals

Below are the big money signals that ResMed has made since 2015. It’s been quiet recently:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. ResMed has been slow to raise their dividend, but they did recently:

  • 3-year dividend growth rate (+4.3%)
  • Current dividend per share = .42
  • Forward yield = .59%
  • 3-year earnings growth rate (+18.68%)

Next, I’m looking at Extra Space Storage, Inc. (EXR), which is a leading storage real estate firm. They recently raised their dividend.

When deciding on a strong candidate for long-term dividend growth, recent outperformance is great:

  • 1 month performance (+3.49%)
  • Historical Big Money signals

Below are the Big Money signals that Extra Space Storage has made since 2015.

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, Extra Space Storage has a solid dividend picture.

  • 3-year dividend growth rate (+13.2%)
  • Current dividend per share = 1.25
  • Forward yield = 2.83%
  • 3-year earnings growth rate (+0%)

Lastly, I’m looking at AbbVie, Inc. (ABBV), which is a leading pharmaceutical drug company. They’ve been growing their dividend for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1 month performance (+.99%)
  • Historical Big Money signals

Below are the Big Money signals that ABBV has made since 2015.

Source: MAPsignals.com

The last signal they made was a sell signal, but I don’t put much stock into that since it’s the only one.

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. AbbVie has been a steady grower:

  • 3-year dividend growth rate (+22.6%)
  • Current dividend per share = 1.30
  • Forward yield = 4.35%
  • 3-year earnings growth rate (+2.25%)

The Bottom Line

LOW, MSFT, RMD, EXR, & ABBV represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds long positions in MSFT, RMD, EXR, & ABBV in personal and managed accounts but no position in LOW at the time of filming.

To learn more about the MAPsignals process, click here: www.mapsignals.com

Disclaimer

NVIDIA Stock Through The Lens Of Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And NVIDIA has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals NVDA has made the last year.

The last few days have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram

Description automatically generated

Source: www.mapsignals.com

In 2021, the stock has attracted 19 Big Money buy signals. And the only sell signals were back in March during a growth scare. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • YTD outperformance vs. technology ETF (+30% vs. XLK)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, NVIDIA has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+22.17%)
  • 3-year earnings growth rate (+18.04%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, NVIDIA has been a top-rated stock at my research firm, MAPsignals, many times before. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

NVDA has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 2/17/2015, it’s up over 3700%! The blue bars below show the 60 times that NVDIA was a top pick:

Chart, histogram

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Source: www.mapsignals.com

Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if NVIDIA makes additional appearances in the years to come. Let’s tie this all together.

NVIDIA continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The NVIDIA rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in NVDA at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

 

Small Cap Stocks See Big Selling

Today we’ll look at the groups that got hit the most last week. While major indexes like the S&P 500, DJIA, and NASDAQ are at or near all-time highs, smaller stocks aren’t keeping up.

I love to look at data. That helps me visualize what’s really going on with stocks. And a great way to see that is by looking at the MAPsignals Big Money Index. It tracks unusual trading in stocks, mapping Big Money buys and sells.

If the index is lifting, stocks are getting bought. If it’s falling, like now, that means more stocks are getting sold. So while the S&P 500 makes new highs, look how there’s destruction under the surface:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

The BMI is being pulled down by small-caps. To show you what I mean, have a look at last week’s buy and sell activity broken down by market cap. As you can see, much of the selling was in companies with market caps between $500mm – $5B:

Chart, waterfall chart

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And off to the right you can see how there was more red than green by a large margin (559 sells vs 172 buys). But let’s dive deeper.

This is last week’s buying and selling data mapped by sector. Shaded in yellow off to the right is what’s important. If a sector saw more than 25% of its universe get bought or sold, it’s flagged.

Have a look at August 16th – 20th’s data:

TableDescription automatically generated with medium confidence
Source: www.mapsignals.com

You can see how big selling was seen in Technology, Communications, Industrials, Healthcare, Materials, Staples, Discretionary, and Energy. And on the flipside, you can see that Utilities saw buy activity.

So, you may be asking yourself what’s next for stocks? Well, I believe there’s value in certain small-cap areas.

Generally speaking, when stocks get sold this hard (like last week) it can signal a strong reversion for stocks. That just means that stocks can get oversold on a short-term basis.

Here’s the bottom line:

Major indexes power higher as small-caps face lots of selling. From a top-down view, I believe there’s value out there in high-quality equities.

If small-caps can stage a sustained rally or bottom, much of the selling will dissipate. And with August nearly in the rear-view mirror, that’s something investors should smile about.

For long-term investors, look for buying opportunities in the weeks ahead.

Disclosure: the author holds no position in SPY, QQQ, DIA, or IWM at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

Upstart Holdings Rockets Higher With Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Upstart has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals UPST has made the last year.

The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has attracted 8 Big Money buy signals. And more importantly, zero sell signals. They recently reported a strong earnings report. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  •  YTD outperformance vs. financials ETF (+366.91% vs. XLF)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Upstart has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+60.28%)
  • 3-year earnings growth rate (+18.32%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, Upstart has been a top-rated stock at my research firm, MAPsignals, 3 times before. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

UPST has a lot of qualities that are attracting Big Money. And since it first appeared on this report back on 3/23/2021, it’s up 71%. The blue bars below are the times that Upstart was a top pick:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if Upstart makes additional appearances in the years to come. Let’s tie this all together.

Upstart Holdings continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Upstart rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in UPST at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

3 Sectors See Outsized Selling

And today we’ll take a look at where markets sit. Under the surface, there’s a lot more going on than meets the eye. So, let’s take it from the top.

While major indexes like the S&P 500, DJIA, and NASDAQ are at or near all-time highs, many stocks aren’t keeping up. And a great way to see that is by looking at the MAPsignals Big Money Index. It tracks unusual trading in stocks, mapping Big Money buys and sells.

If the index is lifting, stocks are getting bought. If it’s falling, like now, that means man stocks are getting sold. Have a look:

ChartDescription automatically generated with low confidence
Source: www.mapsignals.com

Clearly something is going on if the index is falling hard. Looking at last week, 3 sectors saw outsized selling: Technology, Staples, & Healthcare.

A great way to visualize this is to look at the sector table below. This is last week’s buying and selling data mapped by sector. Shaded in yellow off to the right is what’s important. If a sector saw more than 25% of its universe get bought or sold, it’s flagged.

Have a look at August 9th – 13th’s data:

TableDescription automatically generated with medium confidence
Source: www.mapsignals.com

And on the flipside, you can see that Materials saw buy activity.

So, you may be asking yourself why am I telling you this? Well, I’ve learned that it’s important to get a whole picture of the market. What the major indexes do is only part of the story.

Taking a deeper dive can help investors pinpoint opportunity. Right now, signs point to volatility rising for stocks as the Big Money Index flashes a warning. And as you can see above, certain sectors are under pressure more than others.

I think a lot of this mixed action is due to low liquidity often found in summer. I’m waiting for the BMI to start rising…that will suggest that many of these pain points are firming.

But that isn’t today.

Here’s the bottom line: Under the surface of the market is a clear picture. Many stocks are pulling back. That can signal weakness ahead for markets. Technology, Staples, and Healthcare stocks saw outsized selling last week.

Keep those areas on your radar. Eventually the buyers will step back in…but, for now, signs point to near-term weakness ahead.

For long-term investors, look for buying opportunities in the weeks ahead.

Disclosure: the author holds no position in SPY, QQQ, DIA, or IWM at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

Best Growth Stocks September 2021

Oftentimes, that can be institutional activity. We’ll go over what that looks like in a bit. But, the 5 stocks we see as long-term candidates are ALGN, SEDG, ILMN, VEEV, & FB.

For MAPsignals, we believe that Big Money trading can alert you to the forward fundamental picture of a stock. We want the odds on our side when looking for the highest quality stocks.

Up first is Align Technology, Inc. (ALGN), which is the leader in invisible braces.

Strong growth candidates tend to have strong performance. Check out ALGN:

  • 1-year performance (+126%)
  • 1-year outperformance vs. healthcare ETF (+89.33% vs. XLV)
  • Historical big money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals Align Technology has made the past few years.

Blue bars are showing that ALGN was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

But, what about fundamentals? As you can see, Align’s revenue numbers have been strong:

  • 3-year sales growth rate (+19.52%)
  • 3-year earnings growth rate (+129.65%)

Next up is SolarEdge Technologies, Inc. (SEDG), which is a solar semiconductor firm.

Check out these technicals for SEDG:

  • 1-year performance (+39%)
  • 1-year performance vs. technology ETF (+2.12% vs. XLK)
  • Historical big money signals

Let’s look long-term. These are the top buy signals SolarEdge has made since 2015. Clearly the Big Money has been consistent for years:

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

Let’s look under the hood. As you can see, SolarEdge has grown revenues massively:

  • 3-year sales growth rate = +36.28%
  • 3-year earnings growth rate = +13.85%

Another growth name is Illumina, Inc. (ILMN), which is a sequencing and genomic analysis company.

Strong candidates for growth usually have big money buying the shares. Illumina has that. Also, the stock has been a rocket:

  • 1-year performance (+43%)
  • 1-year outperformance vs. healthcare ETF (+15.44% vs. XLV)

Below are the big money signals Illumina has made since 2015. That’s juice!

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

Now let’s look under the hood. Illumina’s sales growth is impressive. I expect more growth in the coming years:

  • 3-year sales growth rate = +6.27%
  • 3-year earnings growth rate = 0%

Number 4 on the list is Veeva Systems, Inc. (VEEV), which is a cloud-based software firm for the life sciences industry.

Here are the technicals important to me:

  • 1-year performance (+29.17%)
  • 1-year outperformance vs. healthcare ETF (+1.37% vs. XLV)
  • Historical big money signals

Below are the big money signals for VEEV since 2015:

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

Let’s look under the hood. Veeva Systems has been growing nicely:

  • 3-year sales growth rate = +28.83%
  • 3-year earnings growth rate = +36.47%

Our last growth candidate is Facebook, Inc. (FB), which is a social media giant.

Check out these technicals:

  • 1-year performance (+37.49%)
  • 1-year outperformance vs. technology sector (+.16% vs. XLK)
  • Historical big money signals

Facebook is a Big Money favorite…we call that an outlier:

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

Now look at these juicy growth numbers:

  • 3-year sales growth rate = +28.52%
  • 3-year earnings growth rate = +27.3%

The Bottom Line

ALGN, SEDG, ILMN, VEEV, & FB represent top growth stocks for September 2021. Strong fundamentals and big money buy signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in ILMN in personal accounts. He holds no positions in ALGN, SEDG, VEEV & FB at the time of publication.

Investment Research Disclaimer

Monster Beverage Stock Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Monster Beverage has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals MNST has made the last year.

The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price. Red signals are showing big selling in the shares:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has gained a modest 4%. But, MNST just made one of these rare green signals. It came after a solid earnings report. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • 1Y outperformance vs. staples ETF (+4.19% vs. XLP)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Monster Beverage has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+10.94%)
  • 3-year earnings growth rate (+22.6%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, Monster Beverage has been a top-rated stock at my research firm, MAPsignals, dozens of times the last few years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

MNST has been a Big Money favorite since 2015. And since it first appeared on this report back on 1/13/2015, it’s up 157%. The blue bars below are the times that Monster Beverage was a top pick:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

Looking at that chart above, that’s what I call the stairway to heaven! I wouldn’t be surprised if Monster Beverage makes additional appearances in the years to come. Let’s tie this all together.

Monster Beverage continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Monster Beverage rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in MNST at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

Big Money Index Falls To 18-Month Lowv

In fact, many stocks aren’t participating in the rally. Let me show you what I mean and why it’s important.

At my research firm MAPsignals, we track thousands of stocks looking for unusual trading activity. We call it Big Money activity. To boil it down for simplicity, when a stock blasts higher on big volumes, it’s likely getting bought. And when a stock falls on outsized volumes, it’s likely being sold.

And what’s cool about doing this type of study, we can see patterns emerge at the market level and even the sector level. Let’s take a look at the market level first.

Below is the Big Money Index. It tracks what we believe to be buys and sells of stocks. We smooth those signals out over 25-days…it helps to spot trends.

When the BMI ramps, stocks are getting bought and that’s generally bullish. But, when it falls like the last month, it means there’s weakness under the surface of the market. Have a look:

Chart, histogramDescription automatically generated
Source: www.MAPsignals.com

I’ve circled what sticks out to me: the BMI has reached levels not seen since April 2020! The market rally over the past year has been strong to say the least. But, from a data standpoint it’s beginning to stall.

So, you might be asking, what kinds of stocks are getting bought and sold? Great question! Each week we dive into sectors, looking for where the green and red is.

Last week you can see a clear divergence. In the following diagram, we break out buys and sells by sector, ranked by score (think fundamental & technical scores). The higher the sector scores, the stronger it is.

Off to the right you can see some areas highlighted in yellow. Those showcase which sectors saw a lot of trading activity. Yellow means a sector saw 25% or more of its universe get bought or sold.

We can see that buyers were seen in Technology, Utilities, & Healthcare, while sellers were seen in Communications, Energy, & Staples.

Many of the stocks getting sold are small-cap stocks, which can be more sensitive to a reopening economy.

As the coronavirus rapidly spreads, we’ve seen a rotation into Technology and Healthcare stocks. And on the flipside, we’ve seen outsized selling in Energy & Staples.

And 2021 has been full of rotations. We’ve seen growth and value flipflop multiple times. But, this latest rotation looks a bit different from prior rotations…namely due to the rapid decline in the Big Money Index.

Now, we do know that the month of August tends to be quite volatile and it’s typically a low-liquidity environment. So, keep that in mind over the coming weeks.

Any further deterioration in our data could signal a healthy pullback is on the horizon. For the long-term minded investor, pullbacks offer opportunity.

Here’s the bottom line: Markets are near all-time highs. But, under the surface, there’s a tug of war going on. Growth is getting bought as small-cap and Energy stocks get sold.

The Big Money Index has fallen to an 18-month low. If it keeps declining, it could signal near-term trouble ahead for stocks. But always remember, over the long-term markets go one direction: UP. So, look for opportunity!

Disclosure: the author holds no position in SPY, QQQ, DIA, at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

 

SolarEdge Stock Is A Big Money Magnet

So, what’s Big Money? That’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And SolarEdge has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals SEDG has made the last year.

The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price. Red signals are showing big selling in the shares:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In 2021, the stock has dropped 6%. But, SEDG just made one of these rare green signals. It came after a big selloff earlier this year when growth stocks were under pressure. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • 1Y outperformance vs. technology ETF (+35.55% vs. XLK)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, SolarEdge has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+36.28%)
  • 3-year earnings growth rate (+13.85%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, SolarEdge has been a top-rated stock at my research firm, MAPsignals, dozens of times the last few years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

SEDG has been a Big Money favorite since 2016. And since it first appeared on this report back on 1/5/2016, it’s up 916%. The blue bars below are the times that SolarEdge was a top pick:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

I wouldn’t be surprised if SolarEdge makes additional appearances in the years to come. Let’s tie this all together.

SolarEdge continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The SolarEdge rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in SEDG at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

Selling Mastercard Too Early Cost Me $700,000

I’ll tell you with a personal story:

I found the band Phish in 1992. For me, they had it all: soaring guitar solos, classical-like passages, acoustic piano, crushing drums, thumping bass, and all sprinkled with jazz.

I saw them in May of 1993. They sold out 2,800 seats.

I expected perfection. But only caring about music, the hippy environment didn’t appeal, and some songs were too country. Silly stage antics dumbed-down monster musicianship.

My love grew conflicted.

Then I didn’t like their new albums. They were boring compared to live greatness. Growing impatient, I dropped being a “Phan”, returning every few years, only to drop them again.

During that, venues became huge. I saw a sold-out 2013 show at MSG with capacity of 20,789: 10x larger than my first show. They even played venues of 80,000+ people. They also grew a monster business.

Privately held details are murky, but get this: After 2019, Phish earned more at MSG than most Knicks players ever have: $50+ million. Career ticket sales exceed 11.4 million and $500 million. They have a streaming service selling subscriptions, content, and merchandise. I believe they eclipsed (or soon will) $1 billion of total revenue.

During lockdown, I’d take long bike rides, again rediscovering Phish as the perfect soundtrack. On July 31st, my son and I saw them in Atlanta. It was a great show, and the scene was crunchy as ever.

Love or hate it, Phish is an outlier. I wish I had stuck with them from the outset, warts and all. My fickleness made me miss their peak years.

It sounds like regretting stocks I sold too early: I’m picky, but too picky can be costly.

My Costly Trade With Mastercard

In October 2007, I took a quick 150% profit in Mastercard (MA). Seeing big money buying, I bought November $150 calls for $11.50.

Below is a chart of my favorite indicator for stocks: Big Money activity. Green bars show outsized trading activity for Mastercard (likely buying). Red is selling. I’ve circled the buy signal that had me near-term bullish on the stock back in 2007:

Source: ww.MAPsignals.com, FactSet

It was a good bet… Mastercard reported earnings on Halloween, shattering expectations; growing sales, earnings, their footprint, and guiding higher. MA gapped higher blowing through the $150 strike price of my calls, closing at $178.10, +25.5% higher than when I bought the options 6 days earlier. My calls surged more than +150% in a week! I couldn’t resist taking the profit… I pocketed my winnings and walked away. I got what I wanted.

Here’s the rub: Mastercard went on to become one of the all-time great outlier stocks. Since I exited that trade the stock is up +2300%.

Nobody goes broke taking a profit, but you don’t get rich leaving 2300% on the table either. In other terms: If I bought 2 calls, I would have made about $3,000 – awesome for a one-week trade.

But had I held 2 calls exercising my right to buy 200 shares of MA at $150, I would have spent $30,000 on the stock. It split 10-for-1 in January of 2014. 200 shares would have become 2,000 shares. Had I held it until today, it would be worth over $724,000.

I literally left a $721,000 profit on the table.

Here’s what I learned: a longer-term investment perspective makes it easier to ignore fluctuations along the way. It brings calm and reduces stress when stocks invariably face pressure.

Here’s the icing on the cake: when COVI-19 rocked markets last year, Mastercard dropped from $347 to $210. A disastrous fall of -40%.

But since the March 2020 low, Mastercard rallied to new highs: a 70+% gain!

Here is the MAPsignals summary of its outlier status. Those blue bars are the times Mastercard stock ranked well on fundamentals and saw Big Money buying in the shares.

Typically, the more the better. Here’s the long-term climb for the stock:

Life, like investing, isn’t perfect but chasing it can cause premature exits, missing the big wins. Phish ticked most boxes but wasn’t perfect. The Mastercard trade seemed perfect for the short-term but I missed the monster move.

The moral of the story is: when life gives you an outlier, have the long view.

Disclosure: the author holds no position in MA at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer

https://mapsignals.com/contact/

For a look at all of today’s economic events, check out our economic calendar.

Best Dividend Stocks August 2021

The hallmark way I go about finding the best dividend stocks…the outliers is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are MA, SHW, WSM, EBAY, & ORCL.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Mastercard Inc. (MA), which is a large credit card company. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1-month performance (+7.08%)
  • Historical Big Money buy signals

Below are the Big Money signals Mastercard has made since 2015. Blue bars are showing that MA was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Mastercard has a strong dividend history:

  • 3-year dividend growth rate (+45.7%)
  • Current dividend per share = .44
  • Forward yield = .45%
  • 3-year earnings growth rate (+25.12%)

Next up is Sherwin-Williams Co. (SHW), which is a leading seller of paint materials. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at the recent performance:

  • 1-month performance (+4.95%)
  • Historical big money signals

Below are the big money signals that Sherwin-Williams has made since 2015. I expect more buy signals in the years to come.

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Sherwin-Williams has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+16%)
  • Current dividend per share = .55
  • Forward yield = .77%
  • 3-year earnings growth rate (+11.87%)

Next, I’m looking at Williams-Sonoma, Inc. (WSM), which is a leading home retailer company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, recent underperformance is not a bad thing:

  • 1-month performance (-1.15%)
  • Historical Big Money signals

Below are the big money signals that Williams-Sonoma has made since 2015. It’s recently showed a Big Money buy signal:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, WSM has a strong dividend history:

  • 3-year dividend growth rate (+9%)
  • Current dividend per share = .59
  • Forward yield = 1.5%
  • 3-year earnings growth rate (+46.58%)

Next, I’m looking at eBay, Inc. (EBAY), which is a leading online auction marketplace. They recently added a dividend.

When deciding on a strong candidate for long-term dividend growth, recent outperformance is great:

  • 1-month performance (+6.86%)
  • Recent Big Money signals

Below are the Big Money signals that eBay has made since 2015.

Chart, histogram

Description automatically generated

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, eBay has recently started paying a dividend.

  • 1-2 year dividend growth rate (+14%)
  • Current dividend per share = .18
  • Forward yield = .98%
  • 3-year earnings growth rate (+130.48%)

Lastly, I’m looking at Oracle Corp. (ORCL), which is a leading enterprise technology company. They’ve been growing their dividend for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1-month performance (+12.11%)
  • Recent Big Money signals

Below are the Big Money signals that ORCL has made since 2015.

ChartDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. Oracle has been a steady grower:

  • 3-year dividend growth rate (+11%)
  • Current dividend per share = .32
  • Forward yield = 1.46%
  • 3-year earnings growth rate (+93.1%)

The Bottom Line

MA, SHW, WSM, EBAY, & ORCL represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds no positions in MA, SHW, WSM, EBAY, & ORCL at the time of filming.

To learn more about the MAPsignals process, click here: www.mapsignals.com

Disclaimer

Facebook Stock Is A Big Money Magnet

So, what’s Big Money? That’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Facebook has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the stock is trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares the last year.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the big money signals FB has made the last year.

The last few days has seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price. Red signals are showing big selling in the shares:

ChartDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has steadily gained. Year to date, FB made 11 of these rare green signals. These came after a big selloff earlier this year when growth stocks were under pressure. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

  • YTD outperformance vs. technology ETF (+16% vs. XLK)

Outperformance is huge for leading stocks.

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Facebook has been growing revenues and earnings rapidly. Take a look:

  • 3-year sales growth rate (+28.52%)
  • 3-year earnings growth rate (+27.3%)

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, Facebook has been a top-rated stock at my research firm, MAPsignals, dozens of times the last few years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

FB has been a Big Money favorite since 2013 (live and backtested data). And since it last appeared on this report back on 8/27/2013, it’s up 832%. The blue bars below are the times that Facebook was a top pick:

Chart, histogramDescription automatically generated
Source: www.mapsignals.com

I wouldn’t be surprised if Facebook makes additional appearances in the years to come. Let’s tie this all together.

Facebook continues to fire on all cylinders technically alongside growing sales and earnings. I like the long-term story of the stock.

The Bottom Line

The Facebook rally could have further to go. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no position in FB at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

Monday’s Selloff Was Extreme, What To Expect Going Forward

By now I’m sure you’ve heard how Monday July 19th was the single largest day of stock selling since the pandemic low. Based on my data, that is true.

So, today I’m going to show you what extreme selling looks like in terms of Big Money. Then, and more importantly, I’ll tell you what it means for stocks going forward. Well, I’ll tell you what history says we should expect.

So, first, let’s take a look at the daily Big Money Buys and Sells chart. These are the daily tally of buys and sells. Green bars are total buys on the day. Red sticks are sells.

Below I’ve circled what’s important. Monday was the largest day of selling since the pandemic:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

Now, that should raise some hairs on investors’ backs. But look how those big red days tend to line up with local lows in the market.

Well, I also looked back to see how the S&P 500 (SPY ETF) performed after each of those red days. Because to the naked eye it looks like big red days are actually bullish…at least near-term.

So, here’s the 1-week performance of the S&P 500 (SPY ETF) after each of those big red days. Notice anything?

Table

Description automatically generated with low confidence

You should notice how markets tend to bounce after nasty sell days. And that makes sense. When everyone’s selling, it’s probably not the best time to be getting bearish. We’ll see if this latest bout of selling leads to a rip-roaring market. Odds say they will.

So let’s wrap this all up.

The bottom line is this: This time last week, the markets looked vulnerable. The Big Money was indicating that sellers were quickly gaining. The climax of selling came last Monday. Based on history, it says to expect a near-term rally.

As I said last week, use pullbacks as opportunities to shop for amazing stocks on sale. Summers are notorious for low liquidity environments and increased volatility. Those can be opportunities for the patient.

Disclosure: the author holds no position in SPY or the S&P 500 at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

Disclaimer