No Toying Around, Big Money Likes Mattel

And the iconic toy maker could rise even more due to growing sales and earnings. But another likely reason is Big Money lifting the stock.

Mattel 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 Mattel 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 MAT 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 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.

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

  • 1-year sales growth rate (+18.9%)
  • 3-year EPS growth rate (+334.0%)

Source: FactSet

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

In fact, MAT 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.

MAT has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 57 times since 1990, with its first appearance on 12/30/1991…and gaining 363.0% since. Big Money has been in and out of the shares over time; the blue bars below show when Mattel was a top pick:

Source: www.mapsignals.com

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

Mattel Price Prediction

The Mattel 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 MAT at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Drives O’Reilly Automotive

And the auto parts retailer could rise even more due to strong earnings and sales growth. But another likely reason is Big Money lifting the stock.

O’Reilly Automotive 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 O’Reilly Automotive 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 ORLY has made the last two years.

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 two years, 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.

O’Reilly Automotive 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, O’Reilly Automotive has been growing sales and earnings at double-digit rates. Take a look:

  • 3-year sales growth rate (+11.9%)
  • 3-year EPS growth rate (+24.9%)

Source: FactSet

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

In fact, ORLY 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.

ORLY has a lot of qualities that are attracting Big Money. It’s made this list 29 times since 2010, with its first appearance on 03/22/2010…and gaining 1,568.4% since. The blue bars below show the times that O’Reilly Automotive was a top pick:

Source: www.mapsignals.com

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

O’Reilly Automotive Price Prediction

The O’Reilly Automotive 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 ORLY at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

Big Money Bets on Boyd Gaming

The 10-state casino operator and Las Vegas “locals” favorite could keep climbing due to strong demand. 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 Boyd 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 BYD 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 10 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, Boyd has been growing sales at double-digit rates and is profitable. Take a look:

  • 3-year sales growth rate (+15.6%)
  • Profit margin (+13.8%)

Source: FactSet

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

In fact, BYD 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.

BYD has a lot of qualities that are attracting Big Money. While it’s made this list just three times since 2002, with its first appearance on 09/30/2002, it’s gained 278.4% since. The blue bars below show the times that Boyd was a top pick.

Source: www.mapsignals.com

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

The Bottom Line

The Boyd 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 positions in BYD at the time of publication.

Learn more about the MAPsignals process here.

Contact

https://mapsignals.com/contact/

 

Best Oversold ETFs to Buy Now for March 2022

When looking at Big Money ETF buys and sells below from MAPsignals.com, the deep red bars on the right side of the chart reflect the recent selling. In fact, this is the most ETF selling we’ve seen since the COVID-19 pandemic hit markets hard in March 2020:

Source: www.mapsignals.com

When markets move like this, the hysteria can entrap great assets and cause them to be sold off. To identify those “unfairly hit,” long-term investors need to look for ETFs (and their stocks) with great setups.

Remember: ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,500 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all from strongest to weakest.

Let’s get to the five best oversold ETFs to buy for March 2022.

#1 Consumer Discretionary Select Sector SPDR Fund (XLY)

This ETF has been getting hammered this year. That isn’t surprising given the overall growth slide and other headwinds. XLY has been caught in the flood. But Big Money has been buying XLY in chunks over the last year:

Despite the recent decline, XLY holds several solid stocks. One example is its second-largest holding, Telsa Inc. (GOOGL). Here is the Big Money action on GOOGL since 2017 – look at that rise:

#2 Vanguard Information Technology ETF (VGT)

When there are unusually big sells on otherwise fundamentally strong ETFs, it’s usually a time to buy. That could be the case now with VGT. It holds some of the biggest, most successful tech stocks out there. Their ability to bounce back is appealing, as is the growth of VGT:

One great stock among the VGT top holdings is NVDIA Inc. (NVDA). It’s a long-time Big Money favorite with awesome fundamentals, as the multi-year Top 20 chart below shows:

#3 iShares U.S. Home Construction ETF (ITB)

If you want to ride the U.S. housing wave, ITB is a reliable vehicle. Big Money likes this construction ETF because it holds tremendous housing stocks. Given its quality, I think this could be a great opportunity to get a solid ETF at a discount price:

The largest holding within ITB is D.R. Horton, Inc. (DHI). It’s an outlier stock that has been a Top 20 Big Money buy many times since 2015:

#4 iShares Semiconductor ETF (SOXX)

Semiconductors are in pretty much everything modern humans use daily, and they’re in short supply right now, so demand should be strong for a while. SOXX is full of solid growth companies under selling pressure and could be an opportunity:

One company within this ETF that’s been uneven but could still flourish is Qualcomm Inc. (QCOM). Big Money loves it. The multi-year QCOM chart of Big Money activity says don’t bet against it:

#5 First Trust Cloud Computing ETF (SKYY)

This ETF has been dropping since November 2021, but it still has lots of potential. SKYY holds solid companies focused on a critical business need with big growth potential. So, it may still be an outlier.

One great stock in SKYY is Alphabet Inc. Class A (GOOGL), Google’s parent company. Like many tech stocks, it’s fallen back lately, but it still has a phenomenal long-term trend and is SKYY’s top holding. Looking at the Top 20 buys, it’s clear Big Money has loved GOOGL since it began trading:

Here’s a Big Money recap:

  • When Big Money buying pours in, stocks tend to go up
  • Red selling on great quality can be a tremendous opportunity
  • Repeated buying usually means outsized gains

Fair or not, all these ETFs have been hit hard this year due to their growth-oriented focus. But that doesn’t change the fact they hold great stocks that could rise in the future. That’s why I think these oversold ETFs represent great potential bargains.

The Bottom Line

XLY, VGT, ITB, SOXX, and SKYY are my best oversold ETFs to buy now for March 2022. These picks are poised to do well going forward, in my opinion, largely because they each hold great stocks. They may be experiencing selling pressure, but on quality assets, deep red days often prove to be fire sales over time.

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

Disclosure: at the time of publication, the author holds no positions in XLY, VGT, ITB, SOXX, SKYY, TSLA, NVDA, or DHI, but does have long positions in QCOM and GOOGL in managed or personal accounts.

Investment Research Disclaimer

https://mapsignals.com/contact/

 

Big Money Believes in Tesla

And the electric vehicle maker could rise even more due to massive vehicle deliveries, its cryptocurrency exposure, and strong fundamental performance. 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 Tesla 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 TSLA 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 20 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, Tesla has been growing sales and earnings at a double-digit rate. Take a look:

  • 3-year sales growth rate (+41.8%)
  • 3-year earnings growth rate (+33.3%)

Source: FactSet

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

In fact, TSLA 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.

TSLA has a lot of qualities that are attracting Big Money. It’s made this list six times since 2016, with its first appearance on 1/3/2017…and gaining 2,318.46% since. The blue bars below show the times that Tesla was a top pick:

Source: www.mapsignals.com

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

The Bottom Line

The Tesla 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 positions in TSLA in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

XLY: Profit from Tesla the ETF Way With Less Volatility and Dividends

Given its share price of $1140 after a 500% surge, there are questions as to whether this valuation really reflects the real potential of the company.

https://static.seekingalpha.com/uploads/2022/1/4/49663886-16413573186130817.png

Source: cnbc.com

While Elon Musk’s company has key strength attributes which differentiate it as a leading electric vehicle (EV) manufacturer, the stock’s volatility should persist due to the “high-profile” nature of its CEO, the fact that it is a grown name, as well as exposure to the cryptocurrency world. For this purpose, the EV play’s beta of 1.38 is high. Now, beta is a measure of a stock’s volatility compared with the overall market or the S&P 500 which comes with a value of 1.

For those wishing to profit from Tesla without suffering from the volatility as well as get some dividends along the way, there is the ETF route, but since there are many funds holding the popular company as part of their assets, it is important to choose the right one. For this purpose, etf.com provides a list of ETFs with the most Tesla exposure consisting of the Consumer Discretionary Select Sector SPDR ETF (XLY), Simplify Volt RoboCar Disruption and Tech ETF (VCAR), ProShares Ultra Consumer Goods ETF (UGE), and the Vanguard Consumer Discretionary ETF (VCR). There are others as well, but these are the top four.

Next, I extracted data pertaining to the one-year growth and volatility for each ETF from fxempire and MorningStar respectively before adding the expense ratio metric which includes the management fees charged by the fund managers.

Looking at the chart below, XLY, VCAR, and UGE as shown in pale blue have the highest exposure to Tesla at 18.70%, 18.68%, and 18.60% respectively. This is followed by VCR which includes 15.01% of Tesla’s shares in its portfolio. The latter also incurs the least expenses, at a ratio of only 0.10% (shortest red chart), and boasts the highest dividend yield at 0.75%. However, it exhibits a one-year growth of only 23% as shown in the purple chart below, which is less than half of what has been achieved by Tesla during the same period.

https://static.seekingalpha.com/uploads/2022/1/4/49663886-16413573185513768.png

Source: Prepared by author.

Conversely, for those who are anemic to volatility, the most suitable ETF is VCAR with a beta of 0.82 (shortest green chart above). On the other hand, the ETF has the highest expense ratio at 1.08% (tallest red chart) and the worst one-year growth at 18.52%. Pursuing further, UGE, with its superior one-year growth of over 42% but highest volatility (beta of over 2), exceeding even Tesla’s should be avoided, unless you are adept at growth.

Thinking rationally, the ETF offering the best balance between ownership, expense ratio (0.12%) and volatility (with a beta of 1.3 or less than Tesla) is XLY. This SPDR ETF also offers a dividend yield of 0.52% and its 27.16% one-year growth is equivalent to 54% of what was offered by Tesla at 49.76%.

Finally, unless you are a big investor, choosing the ETF option for a stock like Tesla circumvents the need to buy a fractional share or a slice of the stock. This type of trade is not necessarily offered by the mainstream brokers and you may incur more commissions than normal. This said, offering sky-high potential, Tesla’s stock is on a wild ride, but it still deserves a spot in your portfolio, and to this end, choosing XLY does make sense.

D.R. Horton Building Up Big Money Support

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 D.R. Horton 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 all 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 DHI 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 2021, the stock has 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.

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, D.R. Horton has been growing sales at a double-digit rate. Take a look:

  • 3-year sales growth rate (+20.6%)
  • 3-year earnings growth rate (+46.5%)

Source: FactSet

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

In fact, DHI 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.

DHI has a lot of qualities that are attracting Big Money. And since 2015, it’s made this list 31 times, with its first appearance on 4/6/2015… and gaining 281.92% since. The blue bars below show the times that D.R. Horton was a top pick since 2015:

Source: www.mapsignals.com

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

The Bottom Line

The D.R. Horton 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 positions in DHI in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Financial Sector May Rally 11% – 15% Higher Before End Of January 2022

The US Federal Reserve is keeping interest rates low. At the same time, the US consumer continues to drive home purchases and holiday shopping. Strong economic data should drive Q4 results for the financial sector close to levels we saw in Q3:2021. If that happens, we may see a robust rally in the US Financial sector over the next 45 to 60+ days.

The strength of the recent rally in the US major indexes shows just how powerful the bullish trend bias is right now. Some traders focus on the downside risks associated with the US Federal Reserve actions and/or the concerns related to inflation and global markets. I, however, continue to focus on the strength in the US major indexes and various sector trends that show real opportunities for profits.

Comparing Sector Strength

The following two US market sector charts highlight the performance over the last 12 vs. 24 months. I want readers to pay attention to how flat the Financial Sector has stayed since just before the 2020 COVID event and how the Financial Sector has started to trend higher over the past 12 months. This is because the shock of COVID briefly disrupted consumer activity. Yet, consumers are coming back strong, driving retail sales, home sales, and the continued strong US economic data. Therefore, it makes sense that the Financial sector should continue to show firm revenue and earnings growth while the US consumer is active and spending.

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Over the past two years, Discretionary, Technology, and Materials drove market growth compared to other sectors. Remember, the initial COVID virus event disrupted market sector trends over the last 24+ months.

Chart, waterfall chart

Description automatically generated

(Source: StockChart.com)

Taking a look at this 1 Year US Market Sector chart shows how various sectors have rebounded and how the Discretionary and Materials sectors have flattened/weakened.

Pay attention to how the Energy and Real Estate sectors have been over the past 12 months. Also, pay attention to how the Financial sector is strengthening.

I believe that the continued deflation/deleveraging that is taking place throughout most of the world will continue to drive global central banks to stay relatively neutral regarding rising interest rates. This will likely prompt an easy money policy throughout most of 2022 and drive continued revenues/earnings for sectors associated with consumers’ engagement with the economy.

If inflation weakens into 2022 while wage and jobs data stays strong, we may see more moderate strength in the Financial, Healthcare, Discretionary, and Technology sectors over the next 6 to 12+ months.

Read more about Global Deleveraging Here: Delivering Covid Bubble Possible Volatility Risks In Foreign Markets

Chart, waterfall chart

Description automatically generated

(Source: StockChart.com)

Financials May Pop 11% Or More Over The Next 6+ Months

This Weekly IYG, IShares US Financial Service ETF, highlights the recent sideways price trend in the Financial sector and the potential for a 9% to 13% rally that may take place as the markets shift into focus for the Q4:2021 earnings. Yes, inflation is still a concern, but as long as the US consumer continues spending and engaging in the economy, the Financial Services and US Banks should show strong returns.

If the US markets rally into the end of 2021, possibly reaching new all-time highs again, this trend may carry well into 2022 and drive Q4:2021 and Q1:2022 revenues and earnings for the Financial sector even higher.

Graphical user interface, chart

Description automatically generated

This Weekly XLF chart shows a very similar setup to IYG. I firmly believe the recent fear in the markets related to the US Federal Reserve, the new COVID variants, and the global markets deleveraging process is missing one critical component – the strength of the US markets and the strength of the US Dollar.

Chart, histogram

Description automatically generated

As the rest of the world struggles to find support and economic strength, the US markets continue to rebound on the strength of the US consumer, the recovering economy, and the growth of these sectors. As long as the US Federal Reserve does not disrupt this trend, I believe Q1:2022 could be much more robust than many people consider. I also think the deflation/deleveraging process will work to take the pressures away from recent inflation trends.

What could this mean for 2022?

Early 2022 may well work as a “rebalancing” process for the global markets – possibly taking the pressures away from the strength in energy, commodities, and staple products/materials. This means pricing pressures will decrease while consumers are still earning and spending. The Financial sector should benefit from these trends over the next 6+ months.

Watch for the Financials to start to increase throughout the end of 2021 and into early 2022. There are many ways to consider trading this move, but ideally, I think the rally will take place before the end of February 2022.

Q1 is usually relatively strong, so that this trend may last well into April/May 2022. It all depends on what happens that could disrupt the current market sector trends. If nothing happens to disrupt the strength of the US Dollar and the strength of the US markets, then I believe the Financial Sector has a very strong opportunity for at least 10% to 11% growth.

Want to learn more about the potential for a financial sector rally?

Learn how I use specific tools to help me understand price cycles, set-ups, and price target levels. Over the next 12 to 24+ months, I expect very large price swings in the US stock market and other asset classes across the globe. I believe the markets are starting to transition away from the continued central bank support rally phase and may start a revaluation phase as global traders attempt to identify the next big trends. Precious Metals will likely start to act as a proper hedge as caution and concern start to drive traders/investors into Metals.

If you need technically proven trading and investing strategies using ETFs to profit during market rallies and to avoid/profit from market declines, be sure to join me at TEP – Total ETF Portfolio.

Have a great day!

Chris Vermeulen
Chief Market Strategist

 

Best ETFs For December 2021

Some huge sell days took place last month. But as you’ll see in the Big Money ETF Buys and Sells chart below, troughs tend to appear after huge sell days (like we just experienced). In other words, December has a bullish setup.

Going to MAPsignals.com, we can scan Big Money ETF Buys and Sells. Recent big selling (red bars) led markets lower as there was no huge buying (blue bars). We’ve seen a few big sell days this year. Notice what tends to happen after them? Blue bars.

Source: www.mapsignals.com

Long-term investors should look for ETFs (and their stocks), with great setups for the months ahead.

Remember: ETFs are just baskets of stocks, so we need to look at them in detail. MAPsignals specializes in scoring more than 6,500 stocks daily. If I know which stocks compose the ETFs, I can apply stock scores to the ETFs. Then I can rank them all strongest to weakest.

Let’s get to the 5 best ETF opportunities for December.

#1 Consumer Discretionary Select Sector SPDR Fund (XLY)

Consumer discretionary stocks have had a good year overall. Big Money has been buying XLY in chunks this year, especially lately. The fresh buy signals are possibly a play to capitalize on the mega-cap stocks in retail, home improvement, & more:

XLY holds solid stocks; one example is The Home Depot, Inc. (HD). Here are Big Money signals for HD:

#2 iShares MSCI USA Quality Factor ETF (QUAL)

As the name implies, this ETF is all about quality. With stocks, that means profitable, growing companies – the cream of the crop – and that’s what QUAL holds. There was a big washout around October (red bars), but look closely and you’ll see how big dips have preceded big rises:

One great stock QUAL holds is NIKE, Inc. Class B (NKE). It’s a long-time Big Money favorite with awesome fundamentals. As the multi-year chart below shows, when red appears on great stocks, it’s usually an opportunity to get quality on sale:

#3 iShares MSCI USA Momentum Factor ETF (MTUM)

The MTUM is a momentum-based ETF that holds a wide range of high-flying stocks (but they’re also subject to downward pressure). It’s been a solid performer all year, especially early on and then again in the latter part of 2021:

One big winner within MTUM is Tesla, Inc. (TSLA). It’s an outlier stock:

#4 iShares Russell 1000 ETF (IWB)

The first three ETFs were from the stronger part of my ranked list. Now we look for bargains by identifying weaker ETFs holding stocks with strong fundamentals. IWB holds large- and mid-cap U.S. stocks, which have driven markets upward for a while now. After recent highs, IWB has pulled back some, which could be an opportunity:

This ETF holds great stocks. One such winner is Microsoft Corporation (MSFT). Big Money loves it. The multi-year chart says don’t bet against it:

#5 iShares Core S&P Small Cap ETF (IJR)

We have a new MAPsignals author on the team, Alec Young. He brought IJR to our attention as it tracks the S&P 600, a cap-weighted index of U.S. small-cap equities. Such stocks are looking to grow. So, within an ETF like IJR, some new outliers could be flying under the radar. IJR has pulled back recently, but has strong potential over the long-term:

A great stock in IJR is Innovative Industrial Properties Inc (IIPR). It has the potential to be an outlier. Big Money has shown interest in IIPR because of its solid fundamentals, which helps make me a believer that it could thrive (as it has since Big Money dove in):

Here’s a Big Money recap:

  • When Big Money buying pours in, stocks tend to go up
  • Red selling on great quality can be a great opportunity
  • Repeated buying usually means outsized gains

Let’s summarize here:

XLY and QUAL rank high. MTUM, IWB, and IJR, however, rank lower on our list, due to weaker technicals. That’s why I think these weaker ETFs represent great potential bargains.

The Bottom Line

XLY, QUAL, MTUM, IWB, and IJR are my top ETFs for December 2021. November proved to be a dud relative to its usual performance. But 2021 can still end strong. Many ETFs and stocks have pulled back, especially recently, creating potentially attractive opportunities. There’s still a lot to like long-term.

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

Disclosure: the author holds no positions in XLY, QUAL, MTUM, IWB, IJR, TSLA, MSFT, or IIPR, but holds long positions in HD and NKE in personal accounts at the time of publication.

Investment Research Disclaimer

https://mapsignals.com/contact/

 

Big Money Buys Tesla Again and Again

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 Tesla 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 all 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 TSLA 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 2021, the stock has 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:

  • 3-month outperformance vs. Consumer Discretionary Select Sector SPDR Fund (+42.5% vs. XLY)

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, Tesla has been growing sales at a double-digit rate. Take a look:

  • 3-year sales growth rate (+41.8%)
  • 3-year earnings growth rate (+33.3%)

Source: FactSet

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

In fact, TSLA 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.

TSLA has a lot of qualities that are attracting Big Money. And since 2015, it’s made this list six times, with its first appearance on 1/3/2017… and gaining 2,520.40% since. The blue bars below show the times that Tesla was a top pick since 2015:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

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

The Bottom Line

The Tesla 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 positions in TSLA in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Lowe’s Builds on 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 Lowe’s 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 all 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 LOW 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 2021, the stock has 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:

  • 1-month outperformance vs. Consumer Discretionary Select Sector SPDR Fund (+2.68% vs. XLY)

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, Lowe’s has been growing sales at a double-digit rate. Take a look:

  • 1-year sales growth rate (+17.7%)
  • 3-year earnings growth rate (+34.7%)

Source: FactSet

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

In fact, LOW 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.

LOW has a lot of qualities that are attracting Big Money. It’s taken in Big Money 33 times since 2000. But there was a pause from 2004-12. Since 2012, it’s made this list 9 times, with its first appearance on 11/27/2012… and gaining 606.06% since. The blue bars below show the times that Lowe’s was a top pick since 2012:

Chart, histogram

Description automatically generated

Source: www.mapsignals.com

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

The Bottom Line

Lowe’s 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 positions in LOW in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

https://mapsignals.com/contact/

 

Ulta Stock Is A Big Money Favorite

Ulta Beauty Inc. (ULTA) stock has climbed steadily in 2021, jumping +24.7%. And it could be just ramping up as the beauty brand plans for more stores, technology investments, and a media network. But another 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 Ulta 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 all 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 ULTA 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 2021, the stock has attracted 12 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:

  • Year-to-date outperformance vs. Consumer Discretionary Select Sector SPDR Fund (+9.52% vs. XLY)

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, Ulta has been growing sales at a double-digit rate. Take a look:

  • 1-year sales growth rate (+19.8%)
  • 1-year earnings growth rate (+9.2%)

Source: FactSet

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

In fact, ULTA 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.

ULTA has a lot of qualities that are attracting Big Money. And since 2015, it’s made this list 23 times, with its first appearance on 3/16/2015… and gaining 147.34% since. The blue bars below show the times that Ulta was a top pick since 2015:

Chart, histogram Description automatically generated

Source: www.mapsignals.com

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

The Bottom Line

The Ulta 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 does not hold ULTA positions in personal or 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.

eBay Stock Is A Big Money Favorite

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 eBay 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 all 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 EBAY 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, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has attracted 13 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:

  • 1-month outperformance vs. Consumer Discretionary Select Sector SPDR Fund (+5.85% vs. XLY)

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, eBay has been growing sales at a healthy rate. Take a look:

  • 3-year sales growth rate (+2.5%)
  • 3-year earnings growth rate (+130.5%)

Source: FactSet

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

In fact, EBAY 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.

EBAY has a lot of qualities that are attracting Big Money. And since 2015, it’s made this list 11 times (7 times this year so far), with its first appearance on 4/18/2017… and gaining 136.89% since. The blue bars below show the times that Etsy was a top pick since 2015:

ChartDescription automatically generated
Source: www.mapsignals.com

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

The Bottom Line

The eBay 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 does not hold EBAY positions in personal or managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer

Etsy Stock Is A Big Money Favorite

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 Etsy 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 all 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 ETSY 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, histogramDescription automatically generated
Source: www.mapsignals.com

In 2021, the stock has 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:

  • 1-month outperformance vs. Consumer Discretionary Select Sector SPDR Fund (+4.3% vs. XLY)

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, Etsy has been growing sales at a double-digit rate. Take a look:

  • 3-year sales growth rate (+61.1%)
  • 3-year earnings growth rate (+92.4%)

Source: FactSet

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

In fact, ETSY 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.

ETSY has a lot of qualities that are attracting Big Money. And since 2015, it’s made this list 12 times, with its first appearance on 10/18/2016… and gaining 1,576.65% since. The blue bars below show the times that Etsy was a top pick since 2015:

ChartDescription automatically generated
Source: www.mapsignals.com

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

The Bottom Line

The Etsy 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 ETSY positions in personal and managed accounts at the time of publication.

Learn more about the MAPsignals process here.

Disclaimer