Big Money Shines on Royal Gold

And the precious metals company could rise even more due to strong earnings and rising prices. But another likely reason is Big Money lifting the stock.

Royal Gold 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 Royal Gold has many fundamental qualities that are attractive.

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

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 RGLD has made the last year. Each green bar signals big trading volumes as the stock ramped in price:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted nine Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Royal Gold Fundamental Analysis

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, Royal Gold has been growing sales and earnings well. Take a look:

  • 1-year sales growth rate (+23.5%)
  • 3-year EPS growth rate (+81.9%)

Source: FactSet

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

In fact, RGLD has been a top-rated stock at my research firm, MAPsignals, for 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.

RGLD has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 36 times since 1990, with its first appearance on 01/27/2003…and gaining 405.5% since. Big Money has been a fan for a while. The blue bars below show when Royal Gold was a top pick:

Chart Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if RGLD makes additional appearances in the years to come. Let’s tie this all together.

Royal Gold Price Prediction

The Royal Gold rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend of nearly 1.3%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in RGLD at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Invests in LyondellBasell

And the specialty chemical producer could jump even more due to strong earnings and an impressive dividend. But another likely reason is Big Money lifting the stock.

LyondellBasell 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 LyondellBasell has many fundamental qualities that are attractive.

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

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 LYB 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 Description automatically generated

Source: www.mapsignals.com

This year alone the stock attracted five Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

LyondellBasell Fundamental Analysis

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, LyondellBasell has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+66.3%)
  • 3-year EPS growth rate (+72.9%)

Source: FactSet

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

In fact, LYB recently became a top-rated stock at my research firm, MAPsignals. 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.

LYB has a lot of qualities that are attracting Big Money. In fact, it just made the Top 20 report for the first time on 05/31/2022…and gained 1.9% since. Big Money may have a new gem on its hands. The blue bar below shows when LyondellBasell was a top pick:

Chart Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if LYB makes additional appearances in the years to come. Let’s tie this all together.

LyondellBasell Price Prediction

The LyondellBasell rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a more than 4.2% current dividend, including a special one-time dividend of $5.20 per share. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in LYB at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Strengthens Chemours

And the specialty chemical maker could rise even more due to impressive earnings and a strong dividend. But another likely reason is Big Money lifting the stock.

Chemours 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 Chemours has many fundamental qualities that are attractive.

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

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 CC 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

Description automatically generated

Source: www.mapsignals.com

In the last year, the stock attracted seven Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Chemours Fundamental Analysis

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, Chemours has been growing sales and earnings at double-digit clips. Take a look:

  • 1-year sales growth rate (+27.7%)
  • 3-year EPS growth rate (+35.8%)

Source: FactSet

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

In fact, CC has become a top-rated stock at my research firm, MAPsignals. 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.

CC has a lot of qualities that are attracting Big Money. It’s made the Top 20 report three times this year, with its first appearance on 05/10/2022…and gaining 18.9% since. Big Money may have a new gem on its hands. The blue bars below show when Chemours was a top pick:

Chart, histogram

Description automatically generated

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if CC makes additional appearances in the years to come. Let’s tie this all together.

Chemours Price Prediction

The Chemours rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 2.3% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CC at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Livent Attracts the Big Money

And the lithium compound maker could rise even more due to strong earnings and demand. But another likely reason is Big Money lifting the stock.

Big Money Flocks to Livent

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 Livent has many fundamental qualities that are attractive.

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

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 LTHM 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:

Source: www.mapsignals.com

In the last year, the stock attracted 24 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Livent Fundamental Analysis

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, Livent has been growing sales well and the future earnings outlook looks good too. Take a look:

  • 1-year sales growth rate (+45.9%)
  • 2-year vs. 1-year EPS growth estimate (+22.1%)

Source: FactSet

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

In fact, LTHM has become a top-rated stock at my research firm, MAPsignals. 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.

LTHM has a lot of qualities that are attracting Big Money. It recently made the Top 20 report twice, with its first appearance on 11/10/2020…and gaining 164.3% since. The blue bars below show when Livent was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if LTHM makes additional appearances in the years to come. Let’s tie this all together.

Livent Price Prediction

The Livent 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 diversified portfolio.

Disclosure: the author holds no positions in LTHM at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Louisiana-Pacific Attracts the Big Money

And the high-performance building materials company could rise even more due to strong sales and earnings. But another likely reason is Big Money lifting the stock.

Big Money Likes Louisiana-Pacific

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 Louisiana-Pacific has many fundamental qualities that are attractive.

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

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 LPX 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:

Source: www.mapsignals.com

In the last year, the stock attracted eight Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Louisiana-Pacific Fundamental Analysis

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, Louisiana-Pacific has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+21.9%)
  • 3-year EPS growth rate (+57.2%)

Source: FactSet

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

In fact, LPX has been a top-rated stock at my research firm, MAPsignals, for 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.

LPX has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 15 times since 1990, with its first appearance on 06/10/1991…and gaining 671.0% since. The blue bars below show when Louisiana-Pacific was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if LPX makes additional appearances in the years to come. Let’s tie this all together.

Louisiana-Pacific Price Prediction

The Louisiana-Pacific rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend of nearly 1.3%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in LPX at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Best Stocks to Battle Inflation Fears for May 2022

As such, we’ve seen big selling over the past six months by Big Money investors like institutions and pension funds. Inflation and equity downturns can be a nasty combo punch for investors, and we’re seeing it now.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, tracks the Big Money because we believe that’s what tends to move markets. Right now, there’s huge selling (red bars) and an almost complete lack of buying (blue bars):

But there have been some sectors doing well despite the mass market downfall. Three are energy, materials, and utilities. They’re rising because of inflation and the current geopolitical situation’s effect on supply chains.

Chart, histogram Description automatically generated

But that doesn’t mean the only winners are there, just that those sectors are generally benefiting from current market conditions. See, when it comes to inflation, investors need stocks that can handle storms. Those tend to be strong, big companies with healthy balance sheets as well as pricing power that enables paying dividends. Here are five stocks that can go a long way to help battle inflation: ADM, MOS, CTVA, EOG, and JNJ.

Archer-Daniels-Midland Company (ADM) Analysis

Up first is Archer-Daniels-Midland, the agricultural commodities giant.

Companies with pricing power can do well in inflationary environments. With ADM focused on food staples and suffering from supply chain issues, it is experiencing elevated prices and strong demand at the same time. It’s weathered the storm well and pays a nearly 1.9% current dividend. Stocks like ADM are worthy of attention, especially on pullbacks. Check out Archer-Daniels-Midland:

  • 1-month performance (-10.8%)
  • Year-to-date performance (+25.0%)
  • Recent Big Money buy signals

To show you what our Big Money signals look like on a stock, have a look at all the buys in ADM over the past year:

Looking more broadly, Archer-Daniels-Midland has been a high-quality stock for years. The blue bars in the chart below show when ADM was a high-ranking stock likely being bought by a Big Money player, according to MAPsignals. When you see a lot of blue, like ADM has recently, it can be very bullish:

Source: www.MAPsignals.com

Those blue signals indicate Big Money buying and solid fundamentals. As you can see, Archer-Daniels-Midland’s sales and earnings growth have been strong, making it worthy of attention:

  • 1-year sales growth rate (+32.4%)
  • 3-year EPS growth rate (+19.1%)

The Mosaic Company (MOS) Analysis

Next up is Mosaic, a fertilizer and feed company that pays a nearly 0.8% current dividend.

Check out these technicals for MOS:

  • Year-to-date performance (+51.0%)
  • 1-month performance (-19.6%)
  • Recent Big Money buy signals

As markets have turned from growth to value and geopolitical tensions have risen, stocks in certain sectors, like materials, have benefitted. MOS is definitely one of those, as you can see the Big Money buying that’s been prevalent the last year:

Now let’s look long-term. Below are the top buy signals for Mosaic since 2009. The Big Money has been on it in waves:

Source: www.MAPsignals.com

Now let’s look under the hood. As you can see, Mosaic has had strong recent sales growth and owns a healthy profit margin:

  • 1-year sales growth (+42.3%)
  • Profit margin (+13.2%)

Corteva Inc. (CTVA) Analysis

Another inflation-beating name is Corteva, an agricultural firm focused on solving the world’s biggest food challenges. It currently pays a 1.0% dividend.

Strong inflation-beating stocks almost always have Big Money buying support. Corteva has had that in the past year, and its recent dip may provide an attractive buy opportunity.

  • Year-to-date performance (+13.0%)
  • 1-month performance (-10.3%)
  • Historical Big Money signals

Below are the blue Top 20 Big Money buy signals CTVA has made in the last year. Look at how Big Money drives up prices. That’s the JUICE!

Source: www.MAPsignals.com

Let’s look deeper. Earnings growth for Corteva has been impressive. I expect more of the same in the coming years. Its minimal debt is also encouraging for the future.

  • 3-year EPS growth rate (+121.9%)
  • Debt/equity ratio (+6.2%)

EOG Resources, Inc. (EOG) Analysis

Number four on the list is EOG Resources, which is a low-cost oil and natural gas company. It currently pays a dividend of slightly more than 2.5%.

Here are the technicals important to me:

  • 1-month performance (-2.6%)
  • Year-to-date performance (+36.5%)
  • Historical Big Money signals

With the energy sector on a rise for a while, EOG has seen a lot of Big Money buying:

Given that, it’s not surprising EOG Resources is a Big Money favorite recently. But it’s been like that for some time. Below are the Big Money Top 20 buy signals for EOG since 2004:

Source: www.MAPsignals.com

Let’s look under the hood. EOG Resources sales have jumped quite a bit and its profit margin keeps investors happy:

  • 1-year sales growth rate (+99.1%)
  • Profit margin (+23.6%)

Johnson & Johnson (JNJ) Analysis

Our last inflation beater is Johnson & Johnson, the health care giant. It’s involved in many aspects of health care and pays a nearly 2.6% dividend currently. JNJ has been strong since markets got rocky last fall:

Check out these technicals:

  • 1-month performance (-2.1%)
  • Year-to-date performance (+3.0%)
  • Historical Big Money signals

JNJ is a high-quality stock. It’s made the MAPsignals Top 20 buy report 113 times since 1990. As you can see below, it’s been a Big Money favorite:

Source: www.MAPsignals.com

Now let’s look below the surface a bit. JNJ sales have been growing, it’s highly profitable, and the stock is not too expensive right now:

  • 1-year sales growth rate (+13.5%)
  • Profit margin (+22.3%)
  • Forward price-to-earnings ratio (+17.2x)

Bottom Line

ADM, MOS, CTVA, EOG, and JNJ represent the best stocks to battle inflation for May 2022. This group has been able to handle volatile markets well. They’re strong, fundamentally-sound stocks that pay dividends and are set up for success in inflationary environments.

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

Disclosure: the author holds long positions in EOG in personal and managed accounts.

Contact

https://mapsignals.com/contact/

Steel Dynamics Brings in Big Money

And the steel producer and metal recycler could rise even more due to strong demand and a healthy dividend. But another likely reason is Big Money lifting the stock.

Big Money Likes Steel Dynamics

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 Steel Dynamics has many fundamental qualities that are attractive.

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

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 STLD has made the last year.

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

Source: www.mapsignals.com

In the last year, the stock attracted 16 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Steel Dynamics Fundamental Analysis

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, Steel Dynamics has been growing sales and earnings quite well. Take a look:

  • 3-year sales growth rate (+24.0%)
  • 3-year EPS growth rate (+147.6%)

Source: FactSet

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

In fact, STLD has been a top-rated stock at my research firm, MAPsignals, for 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.

STLD has a lot of qualities that attract Big Money. It’s made the Top 20 report 19 times since 2006, with its first appearance on 03/13/2006…and gaining 852.1% since. The blue bars below show when Steel Dynamics was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if STLD makes additional appearances in the years to come. Let’s tie this all together.

Steel Dynamics Price Prediction

The Steel Dynamics rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current 1.7% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in STLD at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Sell High-Beta Stocks. Buy Low-Volatility Stocks. It’s The Business Cycle

Summary

A sound investment strategy takes advantage of the economic environment.

The economic environment drives the relative performance of investments.

The business cycle tells which stocks should be in your portfolio: high-beta vs low volatility.

The main forces driving the business cycle

There are three main types of economic indicators: leading, coincident, and lagging. The lagging indicators are the most important ones for investors because they determine the length of the business cycle and the severity of the economic correction needed to bring them down so the economy can expand again.

Inflation, interest rates, and labor costs are the most important lagging indicators. A rise in inflation reduces consumers’ purchasing power. The rise in interest rates makes purchases of anything less affordable – housing and autos in particular. Rising labor costs hinder profitability. Consumers react to the rise in inflation and interest rates by cutting first the purchase of big-ticket items. This is also the time consumer confidence of the University of Michigan declines sharply.

The slowdown in housing and auto sales are the first developments reflecting the economy is downshifting. Such slowdowns are reflected in equity prices. Coincident indicators such as employment and sales eventually also begin to sputter.

The investment opportunity in equities takes place when the leading indicators – those which were the first to signal the slowdown – are going to rise again.

One of the most important tenets of the business cycle is the slowdown will continue until the causes that created the slowdown are brought under control.

The main causes of the slowdown are the rise in the main lagging indicators: inflation and interest rates. The slowdown will continue as consumers reduce spending until their purchasing power restored again. This happens when inflation and interest rates decline. This is also the time when labor costs decrease, improving business profitability.

As retail sales increase because of rising consumers’ purchasing power, the other coincident indicators also rise: employment, production, and income. These developments will reinforce themselves and the positive loop will continue until the economy overheats.

This is the time when the lagging indicators raise their ugly heads, and the business cycle starts all over again.

Where are we now?

The lagging indicators are rising. Consumer prices keep moving higher – up more than 8%. Interest rates – short-term and long-term – have reached new highs for this business cycle. The two-year Treasury yield soared from 0.2% to 2.6% in the last 12 months. The stock market, an important leading indicator, shows no gains since June 2021 as of this writing. Auto sales and housing have been weakening after several months of rising inflation and interest rates.

Consumers cut spending on big-ticket items first when income after inflation declines as it is happening now (see graphs of buying conditions from University of Michigan survey below). In other words, an increase in the lagging indicators (inflation and interest rates) lead a peak in the leading indicator consumers’ buying conditions (see above chart).

The business cycle is just past Point 7 (see first chart above). The next trends will be slower growth in the coincident indicators. Retail sales and income after inflation are already contracting. Production and employment are still strong. They will have to weaken to reflect cuts in production to reduce inventories.

Inflation and interest rates will decline following more weakness in the coincident indicators (sales, income, production, and employment). In the meantime, growth in business activity will continue to decline until inflation and interest rates drop enough to increase consumers’ purchasing power. It will be a long and drawn-out process.

Economic growth drives sectors’ performance

The environment faced by the financial markets is slower economic growth. This is an important trend because the sectors outperforming the market when the business cycle declines, reflecting slower economic growth, are the non-cyclical sectors (XLP, XLU, XLV, XLRE) ( see chart below, energy being the exception).

The chart shows the percent change over the last 200 days. During a period of stronger growth cyclical stocks (XLI, IYT, XLF, XLE, XLB, XME) outperform the market. The strong performance of the non-cyclical sectors confirms the stock market is past its phase of fast growth.

High-beta and low volatility stocks respond to economic forces

High-beta (ETF: SPHB) and low-volatility stocks (ETF: SPLV) perform in different ways depending on the trend of the business cycle as shown on the following chart.

The above chart shows two sets of graphs. The upper panel represents the graph of the ratio SPHB/SPLV. The busines cycle indicator computed in real-time from market data and reviewed in each issue of The Peter Dag Portfolio Strategy and Management is in the lower panel.

High-beta stocks (SPHB) outperform low-volatility stocks (SPLV) (the ratio in the uppere panel rises) when the business cycle rises, reflecting stronger economic growth due to declining or stable inflation and interest rates.

However, low-volatility stocks (SPLV) outperform high-beta stocks (the ratio in the upper panel declines) when the business declines because of rising inflation and interest rates – as it has been happening since late 2021.

Key takeaways

  • The leading indicators will continue to decline reflecting rising inflation and interest rates.
  • During such time low volatility stocks (SPLV) will continue to outperform high-beta stocks (SPHB).
  • The leading indicators, such as stock prices, autos, housing, consumer sentiment of the University of Michigan, will bottom and rise again following a decline in inflation and interest rates.
  • The decline in inflation and interest rates will be preceded by declines in the coincident indicators (sales and income after inflation, production, and employment).
  • This will be the time when high-beta stocks (SPHB) start outperforming low-volatility stocks (SPLV).

Sociedad Quimica Attracts Big Money

Sociedad Quimica y Minera de Chile S.A. (SQM) stock has soared this year, gaining 64.0% so far. And the Chilean producer of plant nutrients, iodine, lithium, and industrial chemicals could rise even more due to its low-cost position and current 2.4% dividend. But another likely reason is Big Money lifting the stock.

Big Money Likes Sociedad Quimica

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 Sociedad Quimica has many fundamental qualities that are attractive.

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

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 SQM 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:

Source: www.mapsignals.com

In the last year, the stock attracted 15 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Sociedad Quimica Fundamental Analysis

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, Sociedad Quimica has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+57.5%)
  • 3-year EPS growth rate (+51.7%)

Source: FactSet

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

In fact, SQM has been a top-rated stock at my research firm, MAPsignals, for 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.

SQM has a lot of qualities that are attracting Big Money. It’s made this list 10 times since 2008, with its first appearance on 03/17/2008…and gaining 509.6% since. The blue bars below show the times that Sociedad Quimica was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if SQM makes additional appearances in the years to come. Let’s tie this all together.

Sociedad Quimica Price Prediction

The Sociedad Quimica rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it currently pays a 2.4% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in SQM at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Feeds, Fuels MP Materials

And the mining company with a focus on critical electric vehicle materials could rise even more due to big demand. But another likely reason is Big Money lifting the stock.

MP Materials 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 MP Materials has many fundamental qualities that are attractive.

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

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 MP has made since June 2020.

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

Source: www.mapsignals.com

In the last year, the stock attracted 11 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

MP Materials Fundamental Analysis

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, MP Materials has been profitable and growing sales at triple-digit rates! Take a look:

  • Profit margin (+40.7%)
  • 3-year sales growth rate (+147.2%)

Source: FactSet

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

In fact, MP has been a top-rated stock at my research firm, MAPsignals. 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.

MP has a lot of qualities that are attracting Big Money. It’s made this list twice since it started trading in 2020, with its first appearance last month on 03/29/2022…and declining 4.0% since. The blue bars below show the times that MP Materials was a top pick. Given the green signals and upward trend in the previous chart, it could definitely rise more and may be a new Big Money gem:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if MP makes additional appearances in the years to come. Let’s tie this all together.

MP Materials Price Prediction

The MP Materials 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 diversified portfolio.

Disclosure: the author holds no positions in MP at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Sector Rotation Strategy Reveals The Outperforming Sectors For Trend Trading

The stock market has experienced tremendous volatility since late November 2021 and the 4 major indices such as S&P 500 (ES), Dow Jones (YM), Nasdaq 100 (NQ) and Russell 2000 (RTY) has corrected more than 10% from the peak to the trough in February 2022. Since then, the rally in March 2022 is considered as a Wyckoff change of character, which changed the short-term market environment from downtrend to uptrend.

Due to the high volatility (both to the downside and to the upside) as shown up in the market, picking the right sectors followed by buying the outperforming stocks are the keys to be profitable in stock trading.

Smart money has rotated out from the previous leaderships and progressively into different sectors as a result of the on-going sector rotation. Let’s start with a top-down approach to determine the outperforming sectors below.

Top 4 Outperforming Sectors – XLE, XLP, XLU, XLV

There are two elements to focus on in order to determine the outperforming sectors when analyzing the sector charts using the ETFs, which are the relative strength and the price structure. Refer to the chart of XLE (Energy), XLP (Consumer Staples), XLU (Utilities) and XLV (Health Care) below:

XLE has been in a clear uptrend with higher high and higher low since January 2022 while the relative strength (below the chart and annotated in orange) trending up. S&P 500 is used as a benchmark in the relative strength indicator. Rising in the relative strength means XLE outperforms S&P 500 since January 2022.

XLP, XLU and XLV shows outperformance in the relative strength index since December 2021 while their price just hit a higher high recently.

These 4 sectors – energy, consumer staples, utilities and health care show strong price action with their prices break the previous high while outperforming S&P 500.

Sectors Comparison – XLB, XLRE, XLI, XLF

Next let’s compare XLB (Materials), XLRE (Real Estate), XLI (Industrial) and XLF (Financial) below.

The top 2 charts, XLB and XLRE showed outperformance in the relative strength pane since November and December 2021 yet their prices still did not break above the previous swing high. These 2 sectors outperform S&P 500 yet they are not the strongest because of the price structure, which might take more time to unfold.

XLI and XLF show similar relative strength comparing to S&P 500 while their price structures form lower low and lower high, which is a sign of weakness.

Lagging Sectors – XLK, XLY, XLC

The last 3 sectors, XLK (Technology), XLY (Consumer Discretionary), XLC (Communication Services) are the lagging sectors, as shown below.

Both their price structures and the relative strength trend down with lower low and lower high. These 3 sectors are clearly not in favored by the smart money since December 2021.

It is essential to focus on the outperforming sectors like XLE (Energy), XLP (Consumer Staples), XLU (Utilities), XLV (Health Care), XLB (Materials) and XLRE (Real Estate) and to dive into the outperforming industry groups within the sectors before picking the stocks showing Wyckoff accumulation pattern for trend trading.

Stock Market Outlook Video Using Wyckoff Method

Let’s find out where the prices of S&P 500, Nasdaq 100, Dow Jones and Russell 2000 likely to go to. Watch the video below to determine how to use Wyckoff method to derive a directional bias with the volume and the price action alone. Visit TradePrecise.com to get more stock market insights in email for free.

Corteva Grows on Big Money

And the agricultural seed and crop protection company could rise even more due to strong growth and innovation. But another likely reason is Big Money lifting the stock.

What is 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 Corteva has many fundamental qualities that are attractive.

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

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.

Big Money Signals for Corteva

To show you what I mean, have a look at all the Big Money signals CTVA 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:

Source: www.mapsignals.com

In the last year, the stock attracted 18 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important for leading stocks.

Corteva Fundamental Analysis

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, Corteva has been growing sales at double-digit rates and earnings at triple-digit rates! Take a look:

  • 1-year sales growth rate (+10.1%)
  • 3-year EPS growth rate (+121.9%)

Source: FactSet

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

In fact, CTVA has been a top-rated stock at my research firm, MAPsignals. 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.

CTVA has a lot of qualities that are attracting Big Money. It’s made this list four times since it began trading in 2019 (all this year), with its first appearance on 02/15/2022…and gaining 17.8% since. The blue bars below show the times that Corteva was a top pick – Big Money may have a new gem:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if CTVA makes additional appearances in the years to come. Let’s tie this all together.

Corteva Price Prediction

The Corteva rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus CTVA pays a nearly 1.0% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CTVA at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Big Money Backs Nucor Once Again

And the steel manufacturer could rise even more due to strong demand and rising interest rates. But another likely reason is 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 Nucor has many fundamental qualities that are attractive.

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

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 NUE 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:

Source: www.mapsignals.com

In the last year, the stock attracted 23 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important 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, Nucor has been growing sales at double-digit rates and earnings by triple digits! Take a look:

  • 3-year sales growth rate (+20.1%)
  • 3-year EPS growth rate (+265.0%)

Source: FactSet

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

In fact, NUE has been a top-rated stock at my research firm, MAPsignals, for 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.

NUE has a lot of qualities that are attracting Big Money. It’s made this list 32 times since 1990, with its first appearance on 01/11/1993…and gaining 2,715.6% since. The blue bars below show the times that Nucor was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if NUE makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Nucor rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus NUE pays a 1.4% current dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in NUE at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

CF Industries Attracts Big Money

And the nitrogen fertilizer manufacturer could keep climbing due to strong demand amid geopolitical tensions. But another likely reason is 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 CF Industries has many fundamental qualities that are attractive.

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

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 CF 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:

Source: www.mapsignals.com

In the last year, the stock attracted 27 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important 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, CF Industries has been growing sales and earnings at double-digit rates. Take a look:

  • 1-year sales growth rate (+58.5%)
  • 3-year EPS growth rate (+78.2%)

Source: FactSet

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

In fact, CF has been a top-rated stock at my research firm, MAPsignals, for 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.

CF has a lot of qualities that are attracting Big Money. It’s made this list 21 times since 2009, with its first appearance on 03/02/2009…and gaining 1,039.6% since. The blue bars below show the times that CF Industries was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if CF makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The CF Industries rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus CF pays a current 1.18% dividend. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in CF at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Westlake, Big Money Bond is Strong

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 Westlake has many fundamental qualities that are attractive.

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

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 WLK 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:

Source: www.mapsignals.com

In the last year, the stock attracted 17 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important 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, Westlake has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+14.5%)
  • 3-year EPS growth rate (+143.4%)

Source: FactSet

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

In fact, WLK has been a top-rated stock at my research firm, MAPsignals, for 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.

WLK has a lot of qualities that are attracting Big Money. It’s made this list 20 times since 2010, with its first appearance on 09/11/2012…and gaining 311.9% since. The blue bars below show the times that Westlake was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if WLK makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The Westlake 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 diversified portfolio.

Disclosure: the author holds no positions in WLK at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

SSR Mining Becoming a Big Money Gem

And the precious metals miner could keep climbing due to geopolitical tensions causing investors to seek safety. But another likely reason is 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 SSR Mining has many fundamental qualities that are attractive.

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

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 SSRM 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:

Source: www.mapsignals.com

In the last year, the stock attracted 19 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

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

Outperformance is important 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, SSR Mining has been growing sales and earnings at big rates. Take a look:

  • 3-year sales growth rate (+52.5%)
  • 3-year EPS growth rate (+322.3%)

Source: FactSet

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

In fact, SSRM has recently become a top-rated stock at my research firm, MAPsignals. 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.

SSRM has a lot of qualities that are attracting Big Money. It just made this list for the first time on 03/15/2022. The blue bar below shows when SSR Mining was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if SSRM makes additional appearances in the years to come. Let’s tie this all together.

The Bottom Line

The SSR Mining rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a nearly 1.3% dividend currently Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in SSRM at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/