If You Can’t Beat Wall Street, Buy Stocks Like They Do

By TradeSmith Research Team

In my time executing Big Money trades on Wall Street, I not only learned how the flow of money moves stock prices. I also learned that Big Money often buys and sells stocks well in advance of big news stories.

They seem to trade on information the public doesn’t have.

As a result, they’re able to make the huge gains and leave the American people with the table scraps.

Infuriating, isn’t it?

Here’s an example: In July 2021, we saw unusually large amounts of covert buying activity, much of which was in the Dark Pools, of a semiconductor company called Xilinx (XLNX). Over the next several months, the stock jumped 36%.

Then just a few months later, Advanced Micro Devices (AMD), one of the world’s largest semiconductor companies, closed a record deal by buying Xilinx for around $50 billion.

The stock continued its move higher, eventually peaking at a 63% gain.

The “Smart Money” often gets ahead of a major announcement… and makes a huge gain. And then the story hits the press, the American people buy in… and Wall Street makes even bigger profits because they already own the stock.

The average person might make some money out of it, if they’re lucky.

It’s not just corporate takeovers. It’s any big announcement that moves a stock… FDA drug approvals, earnings surprises, stocks getting added to major indices, and more.

Like what happened with Biogen (BIIB). In July 2022, we noticed unusual buying of the drug company by Wall Street. The stock went on a 26% run.

Two months later, data was released that showed one of Biogen’s Alzheimer’s drugs (lecanemab) slowed progress of the disease by an unprecedented 27%. In the world of Alzheimer’s drug trials, that was huge.

The stock jumped again, eventually peaking at a 44% gain in just a few months.

It seems like Wall Street already knows about these big announcements when they hit the news. I saw this all the time during my own time on Wall Street, and I still see it happen today – especially in the Dark Pools.

(I recently gave a full explanation of Dark Pools and how you can level the playing field in a webinar called The Dark Pools Summit. You can watch the full replay here for a short time longer.)

Wall Street’s Power

This is one of the reasons Wall Street uses methods like Dark Pools to keep trades anonymous.

Does that mean the market is rigged?

You could call it that. But if it is, it’s legally rigged.

When you make an investment, you’re competing against every other investor out there who’s eyeing the same investment – your neighbor, your Uber driver, or a huge Wall Street bank.

The first two might not present any big challenges, but imagine being up against a massive bank like BlackRock, State Street, or Vanguard.

All three of these companies combined manage around $22 trillion in assets. Not only that, all three are the largest shareholders of nearly every major public company, and even own parts of each other.

When you have that much consolidated power, you’re not going to have a fair game. These companies are going to be able to influence it in their favor.

This is how Wall Street always wins. How in a year like 2022 – when we had the worst start to the stock market in 50 years Wall Street made record profits. One hedge fund, Citadel, made the most money a hedge fund has ever made that year – $16 billion in profits.

Finding the Wave and Riding It Home

I’d like to say that I can show you how to turn the tables on Wall Street and make everything completely fair.

But I can’t.

We can’t change how the system works. It benefits too many people.

But we can learn the system and use it to our advantage.

That’s what happened with me all those years running trades… and my strategy has been all about that ever since.

Every day, these big institutions send tidal waves of capital across the globe through places like the Dark Pools, causing giant moves both up and down. Once you understand the system and can track the big, hidden money flows insiders don’t want you to know about, you can piggyback on them and join in the big profits.

That’s how, according to a back test of my system, I would’ve been able to beat the markets by 7-to-1 for years.

I find the highest-quality stocks (fundamentals) with strong price action (technicals) and the all-important Big Money flowing in through Dark Pools, trading desks, or anywhere else. We see where the money is flowing, and we ride that wave higher.

I’m talking about stocks like Cadence Design Systems (CDNS), which is up more than 40% for us in my Quantum Edge Pro service. It’s now above my recommended buy limit, but a peak inside my system shows that Big Money has been buying most of 2023…

Source: MAPsignals.com

That’s 21 Big Money buy signals so far this year, with the most recent less than a week ago. Money flow – much of it in Dark Pools – is the fuel that moves prices up or down… and it’s the fuel Wall Street tries to keep quiet.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends

P.S. I can’t overemphasize the importance of understanding and tracking Dark Pools and Big Money flows.

Wall Street may know some things before the rest of us, but if we can see where the money is going, we can hop on for the ride.

In fact, my two newest recommendations in Quantum Edge Pro both just saw Big Money buy signals again on Friday.

I explain all of this and how to use it to your advantage in The Dark Pools Summit. You can watch the replay here, but you should check it out soon as I’m told it will be coming down possibly tomorrow.

Learn more here.