Use this Profit-Boosting Strategy Now Before Stocks Get Choppier

By TradeSmith Research Team

A pullback is coming. My data is clear on that.

The questions are when… and how big.

And most importantly, what can you do now?

We just took partial profits in several big winners in my Quantum Edge Pro service – including 250% in a partial position today – and I recommend consider doing the same.

Deciding when to sell a stock is perhaps the most difficult investing decision there is. Selling some of your shares can help, but it’s still hard.

If you own stocks that have made you a lot of money, you want to protect your profits… but also not leave money on the table by selling too soon.

Or, if a stock has gone against you, you want to cut it loose… but also not sell right before it bounces.

I designed my quantitative system precisely to avoid that emotional whiplash, so let’s make it simpler by looking at what the data tells us.

Get Ready for More Volatility

My proprietary Big Money Index (BMI) is the most accurate market indicator I’ve ever seen. I share it with my Quantum Edge Pro readers every Monday, and I talk about it in alerts, videos, and more.

Right now, the BMI clearly points to higher volatility on the horizon. I don’t know whether it will hit tomorrow, next week, or a month from now. But I do know that when the BMI falls out of “overbought” status – as it did 10 days ago – it has an unbelievable record over more than 30 years of data in forecasting market choppiness.

The BMI (amber line below) tracks unusually large money flows – or the Big Money that moves stocks and markets. When it rises above 80, buying is unsustainably strong.

The index rose into this “overbought” zone back on Dec. 14, and it fell out of overbought on Feb. 5 – ending an unusually long stretch of seven weeks with unusually high buying.


And it was great. I hope you made some good money in that time.

The BMI bottomed on Oct. 30, and the S&P 500 (shaded blue area) has rallied 21% since then. Many stocks moved even higher – my current Quantum Edge Pro recommendations soared a phenomenal 45% on average, more than doubling the market.

So we had a blazing rally… and we have reliable data indicating a pullback is likely.

That makes now a great time to consider banking at least partial profits.

Doubling Up the Profits

Remember, selling doesn’t have to be all-or-nothing. You can sell some shares just as easily as you can sell all shares.

You can lock in profits, reduce risk, and stay in a great stock all at the same time. A triple winner.

Should the pullback be mild, you still own some or possibly most of the shares you once did in stocks making you money. And if it’s a steeper drop, you have cash to redeploy in great stocks that have pulled back to lower prices. You may even get to buy back shares you just sold at lower prices, boosting your long-term returns in the stock.

Selling partial positions in winners is a form of rebalancing. That’s why we sold one-third of our shares in four Quantum Edge Pro winners that had gained nearly 75% on average. We also cut one loser (a modest, in comparison, 18% loss) to further reduce risk and free up more cash for better opportunities.

And guess what? One of the stocks we sold a third of for 149.1% gains kept going through the roof. So, we sold another third just today in Super Micro Computer (SMCI) for 258% gains.

We’ve now locked in a double on the entire investment… while still holding one-third of our shares. Which, by the way, are now worth more than what we paid for all of our shares initially.

We’ve booked fantastic profits and now have the flexibility to keep riding the stock higher or to take advantage of a pullback to buy some or all of those shares back. After such a tremendous run, the data shows its due for a healthy pause.

SMCI is still a great company with great potential. Its Quantum Score is 86.2, which combined with the Technical Score of 91.2 is overheated. (And that Technical Score will likely be higher tomorrow after another big move today.)

Source: TradeSmith Finance and

(By the way, members of my Quantum Edge Pro service can now type in a name or symbol and find the Quantum Score for any stock they wish. Click here to learn how you can access it as well.)

We’ll be using our cash generated from these big profits to grab new opportunities. While I expect some volatility in the coming weeks, 2024 still looks to be a highly profitable year with inflation trending down, rate cuts sure to happen at some point, companies continuing to grow, and a record amount of cash on the sidelines that will need to flood back into stocks to keep up.

The key was, is, and always will be owning the best stocks that Big Money is buying. That’s how we got the profits we just locked in, and it’s how we’re ready for any coming volatility and the buying opportunities that will accompany it.

I hope you’re sitting on some nice gains as well. If so, think about doing the same.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends