The bad beats keep coming for the bears.
Markets chug higher week after week as money flows surge into growth pockets of the market.
We’re witnessing one of the strongest stock picking environments in years.
Here’s how to find the most powerful winning A.I. stocks like Celestica (CLS).
Today’s message is very simple: The next crop of market leaders is already here. Our unique money flow lens has been spotting breathtaking small-cap opportunities for well over a year now.
As many investors squabble over which direction major indices will take, respectfully I see that as missing the mark.
Sure, focusing on select bellwether Technology stocks has been a winning strategy the past year.
However, the bigger prize has been found in isolating brand-new companies under relentless institutional sponsorship.
When demand for shares is high and the company is growing like a weed, the stock has nowhere to go but UP.
This is where MAPsignals shines again and again.
Today, we’re not only going to review the changing Big Money landscape…we’ll also provide a hard-hitting historical study that suggests double digit gains are coming for markets.
Then, I’ll isolate one of our Top A.I. names that rarely gets media coverage…more importantly, how we found it early and why we had heavy conviction on it.
That memo didn’t disappoint as inflows are fiercely finding stocks right on time.
Our market North Star, the Big Money Index (BMI), has been ripping lately as tons of new capital is being put to work.
As a reminder, the BMI plots a moving average of single stock inflows and outflows. When the yellow line of truth points north, stocks are under heavy accumulation:
This new market life doesn’t come as a surprise given both large- and small-caps jump between now and July.
Since 1998, May 20th – July sees the S&P 500 lift 1.74% and the S&P Small Cap 600 climb 2.52%:
The key point here is stocks are facing 2 bullish tailwinds: a rising BMI and seasonal strength. It’s never a good idea to fight market forces…even if we’re staring at all-time highs for major indices.
But we can’t stop here with our bullish rant. Turns out, one new data point is signaling powerful upside in the months ahead.
Which brings me to another key study about a newly found worry from the bears. Volatility is crashing as the CBOE Volatility Index (VIX) fell below 12 for the first time since 2019.
Some pundits sent out the red flags to investors, professing this as a reason to worry:
When I saw this, I initially felt pressure in my stomach. Surely this lack of market uncertainty spells doom ahead, right?
WRONG.
Turns out, a VIX closing below 12 signals more pain for the bears…a lot more pain.
Since 1990, whenever the VIX closes below 12, not only does the S&P 500 rip 10.1% twelve months later, the tech-heavy NASDAQ 100 (NDX) outperforms with a market-beating 17% rally 12-months post a low volatility reading:
This is more data-driven evidence that you want to keep owning the best stocks out there.
You need to be laser focused on the biggest themes in the market…like how to find the most powerful winning A.I. stocks not on the media’s radar.
This is where having unmatched money flow data comes in handy.
The smartest money managers have access to unbridled research and resources. They catch on to market drivers well in advance of the mainstream media.
When I handled large institutional order flow on Wall Street, I saw the power that institutional buy pressure had on stocks.
Smart Big Money players have a war chest of capital to deploy. When they zero in on a company, they routinely have to break up their mega buy orders into digestible-sized tickets.
This can amount to millions of dollars of capital being spread out over weeks to get the buy order executed.
At MAPsignals, we created our own proprietary money flow signals to try and uncover these hidden inflows. When you’ve handled thousands of institutional trades, you know how to spot these footprints.
But it isn’t just buy pressure that matters for the best stocks. You also need to isolate companies with outstanding fundamental drivers like accelerating earnings growth and operating leverage.
Celestica Inc. (
$CLS) is a tech hardware company that is benefiting from the PC upgrade cycle refreshed for A.I.
Back on July 11th, 2023 we noticed unusual buying in
$CLS alongside a very favorable earnings outlook. At the time, analysts estimated that their 2024 EPS would amount to $2.22.
Analysts were way behind the ball on this one. As of this morning, 2024 EPS estimates stand at $3.63 – that’s 63% higher than professional estimates last July.
This is mission critical because accelerating earnings is what excites big investors. Celestica first came on our radar July 11th, when it made its
first appearance on our Top 20 report at a share price of $15.85.
The stock then saw 7 more rare inflow signals since. The blue bars below highlight when CLS made our rare Top 20 report:
These idiosyncratic situations are exactly why MAPsignals is in business. We focus on tomorrow’s winners, today.
Celestica is not well-known in the mainstream, but it’s a mainstay in our research appearing again and again.
That’s our edge.
The current backdrop for equities is higher. Check.
The current backdrop for the true A.I. winners of tomorrow is only just beginning. Bigger check.
Let’s wrap up.
Here’s the bottom line: Bullish season is here for stocks. Late May kicks off a powerful time for stocks.
And don’t let low volatility sideline your appetite for stocks. Since 1990 when the VIX closes below 12, double digit gains come for equities 12-months later.
That means focus on the biggest money flow tailwinds in the fastest growing areas of the market.
If you want to know how to find the biggest winning A.I. stocks like Celestica (CLS), get access to hedge fund quality research at MAPsignals.
The market giants of tomorrow can be found today.
MAP the best stocks and you’ll find them!
It’s simple:
Money Flows > News Flow
