Wall Street Is Piling Into Software Stocks

It was the summer of 2001…

I’d just started my job at an investment bank in London. And the days were grueling.

As the newbie, I had to get everyone’s lunches… make their teas (this was London, after all)… and take all sorts of verbal abuse in the process.

But then, luck struck. Michael P. shouted through the speaker at all 25 traders on my desk:

I’ve had enough of you all thinking you know more than me! I want your most junior trader to cover me. I’ll mold him how I want.

I was that junior trader. And Michael P.? He was the biggest derivatives trader in Europe – and an absolute bear to deal with.

He traded over 2,000 stocks. And he wanted me to find every trade over $5 million… every day… across all of Europe.

Heaven help me if I missed one.

I knew I couldn’t track that many stocks alone. So I coded computer programs to help me. And that’s when I learned the biggest lesson of my life…

To make big money in the markets, you have to follow the big money.

You see, guys like Michael P. can send the price of a stock rocketing higher. When they buy, they buy multimillion-dollar chunks.

But here’s the thing: They don’t want you to know they’re buying until they’re finished. So they try to cover their tracks.

It took me years of studying. But I finally built a system to track them down before anyone else.

And today, I’ll tell you exactly which sector the big money is buying now – and how to ride alongside it for big profits…

My Unbeatable Stock-Picking System

I spent much of my Wall Street career (including time with big firms like Cantor Fitzgerald) working on computer programs to track big-money buying in the markets.

It cost me over $250,000 and years of my life. But it’s the best stock-picking system I know of.

Here’s how it works…

It scans 5,500 stocks every day, using algorithms to rank each one for strength. It also looks for the signs of big-money investors. And when it sees them moving in or out of a stock, it raises a yellow flag.

I put these yellow flags through another filter. If the flag turns red, it means the big money is selling. If it turns green, it means the big money is buying…

It’s that simple: When I see green, the big money is buying. So where is it headed next?

Big Money Is Buying Here

The chart below shows the iShares Expanded Tech-Software ETF (IGV). It holds 94 of the top companies in the space.

The green bars appear when there’s more than 1.5 times the average amount of buying in a stock. In other words, it’s showing us the big-money buying.

And as you can see, each time big money comes in, it’s off to the races…

My system triggered on it most recently on November 7. And it’s not too late to ride this new wave of buying. You see, we went back and crunched the numbers…

We’ve seen this level of big buying seven times since 2016. And the average six-month return after our signal triggered is around 11%. Annualized, that would translate to 22% per year.

So if you want exposure to the software space, consider IGV. If history is a guide, you could make 22% or more over the next year riding alongside the big money.

Follow the Money!

Jason Bodner
Editor, Palm Beach Trader

P.S. Again, finding out where big investors are putting their money can help you spot the best stocks. They drive the markets with their massive, multimillion-dollar trades.

And while they do their best to cover their tracks, my system can identify their buying activity 24 hours to 10 days in advance. Now, you can use it as your “cheat sheet” to predict which stocks are about to skyrocket – several days or weeks in advance.

To gain access to my system, just click here for all the details.