Six Stocks that Big Money Has Been Buying (Over and Over)
“Investors hate this bull market,” declared Financial Times reporters this week.
“Bull market or fool’s market? Investors say it’s likely the latter,” agreed CNN Business.
Why? It all has to do with the new hot topic on financial TV and podcasts: the “Magnificent Seven.” Yes: we’ve finally gotten away from the “FAANG” thing Jim Cramer came up with 10 years ago – and expanded it out… a little.
As the FT journalist noted, the Magnificent Seven stocks include “Apple, Microsoft, Alphabet, Amazon, Tesla, Meta, and to stage right, Nvidia, come from nowhere to be a trillion-dollar company.”
I agree that Nvidia (NVDA) joining the $1 Trillion Club was big news … although, I gotta say, it’s a bit of a stretch to say Nvidia “came from nowhere.” If you’ve been following the company – which has long been a highly rated stock for me and many of my colleagues at TradeSmith and InvestorPlace – then you already knew NVDA is a heavyweight champion in tech.
Either way, the financial media has a bone to pick with Big Tech, which is that the stocks are leaving all the others behind. This Magnificent Seven is hoarding all the investment dollars…
So, yes, it looks like we’re in a bull market. But is it all a mirage?
At least, that’s the question the bears want us to be asking. But, as we’ll see here in today’s Power Trends, things appear to be changing on Wall Street.
It’s certainly true that technology stocks, especially semiconductor stocks, and other growth companies have led the market’s big rally since last fall.
But my Quantum Edge sector rankings show that, while tech remains “The King,” all other sectors are rising, too – and their Quantum Scores are surging into that same tech territory.
In fact, Technology and Discretionary stocks, which have been leading the pack for a little while now, are starting to give up some ground. Compared to their scores from June 12, those two leaders have seen their scores ease back a tad, while most other sectors have seen their average scores climb.
Bottom line: Our Quantum Edge “radar” is picking up substantive buying in all sectors.
I’ve got some interesting examples for you today. And that’s a very encouraging sign that this bull market is, in fact, “real.”
What is Big Money Buying Lately? All Sorts of Stocks, It Turns Out
Did you hear that Adobe (ADBE) plans to acquire Figma, a newer, popular graphic design app? And that it’s joining the AI party?
Wall Street has. As you’ll see in the below chart from my Quantum Edge system – which I specifically designed to track the footprints of Big Money – institutions generated 13 Big Money buy signals (green bars) on ADBE in the past month, starting on May 25.
On June 15, we learned in Adobe’s quarterly report that the legacy software company topped earnings expectations for the sixth quarter in a row and raised its 2023 outlook to $15.65–$15.75 earnings per share (up from $15.30–$15.60). Revenue results and management’s outlook came in above analyst projections, too.
So, good call, Wall Street.
Meanwhile, among the homebuilder stocks, KB Home (KBH) has seen seven Big Money buys in the past month.
Similarly, Lennar Corp. (LEN) has seen six Big Money buys.
That may be surprising with mortgage rates still so high, as I’ve discussed here in Power Trends before, but investors were starting to get the message that the Federal Reserve is about finished with its aggressive interest-rate policy.
And apparently institutional investors, like the rest of us, love a comeback story.
Speaking of a comeback… Netflix (NFLX) has picked itself up off the floor and soared from $170 to nearly $450 in the past year.
Along the way, NFLX has enjoyed plenty of Big Money buys – nine in the past month.
Seems like the company’s “quit sharing your Netflix password” crackdown has been a success. That began on May 23, after which Netflix saw a huge spike in signups: nearly 100,000 for a couple of days there. That’s even higher than the “Tiger King” craze during COVID lockdowns.
Another (very different) stock that’s getting plenty of interest is S&P Global (SPGI). The market-index and credit-rating firm has seen seven Big Money buys this past month.
And we can’t forget one of the most popular stocks in the world. Tesla (TSLA) is really racking up the Big Money buys with 11 since June 1 alone:
It’s been a long time since TSLA has gotten that level of inflows. Not since 2021, to be exact. So, it’s worth highlighting for you here.
I’d also like to note that many of these buy signals seem to indicate Big Money accumulating the stocks ahead of an earnings report. Apparently, the armies of analysts at these firms liked the intelligence they were picking up about the companies.
Well, my team and I are some of the guys out there providing data to institutions, hedge funds, etc. I highlight the Big Money buy signals to my clients, as well as to readers like you and in my Quantum Edge research services.
Earlier in my career, I facilitated these Big Money trades, so I learned how to spot them, what they mean, and how to take advantage.
There’s a ton of other predictive factors, too, that I honed in on by talking to multi-billion-dollar fund managers, merger and arbitrage acquisition traders, private wealth managers – any successful professional that I could connect with in my 12 years at Cantor Fitzgerald.
I combined the collective wisdom of these pros with my own research to create a checklist for gauging the health of a company and the momentum of its stuck – and for accurately predicting future price movement. Those factors that held up to extensive back-testing and analysis were included in my Quantum Score.
To this day, those signals are helping me find all kinds of compelling stocks… in corners of the market that other investors might not think to look. Be sure to check out the latest buy alerts in my Quantum Edge services, which you can learn more about here.
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends
Disclosure: On the date of publication, Jason Bodner held a position in Tesla, Inc. (TSLA), mentioned in this article.