235 Buy Signals and 1 Important Message VIEW IN BROWSER BY JASON BODNER, EDITOR, QUANTUM EDGE PRO Most trading days are just noise. But every now and then, the market speaks loud and clear. August 22, 2025 was one of those days. Federal Reserve Chair Jerome Powell gave his much-anticipated speech at the Jackson Hole Economic Symposium – the annual gathering of central banks. Traders watched with intent, knowing a few carefully chosen words could move trillions across stocks, bonds, currencies, and commodities. And move they did. Powell cracked open the door to a possible September interest rate cut, and markets responded instantly. The S&P 500 and Nasdaq both jumped, but small caps were the big winner with the Russell 2000 surging 3.9%. Even in the middle of hot and slow August trading days, it couldn’t have been clearer that Big Money is positioning for lower interest rates. Investors now assign an 89.3% probability of a quarter-point cut at the September meeting, according to FedWatch. That’s up from just 61.9% a month ago.  The August 22 surge confirmed that rate cuts are the biggest catalyst right now – and we could get them in time for a juicy fourth-quarter rally. Friday was a preview of coming attractions, so let’s learn a little more about the story that’s ahead. We can do that by seeing exactly where the Big Money was flowing on that day. Upwards of 70% of the money flowing in and out of stocks comes from these deep-pocketed investors. This is the money that moves stocks… and you can either swim with this powerful wave or try to fight against it. Our Quantum Edge system tracks these flows every day, giving us a tremendous edge in analyzing the market overall and finding the best stocks to invest in. Recommended Link | | After spotting Nvidia before it soared as high as 3,100%… Super Micro before it jumped 1,300%… and Broadcom before it jumped 2,113%… Wall Street legend Louis Navellier has become something of an AI evangelist. That’s why his recent market alert is so controversial… In a stunning about-face, the man Forbes called “King of the Quants” just went public with a shocking AI warning. It concerns a troubling phenomenon his quant algorithm keeps seeing in AI stocks… One that he’s convinced will blindside millions of unprepared investors in the coming weeks. If you have ANY money in the markets right now, you owe it to yourself to watch his urgent alert. Go here now to see the video. | | | One of the Biggest Buying Days of 2025 Friday marked the second-biggest buying day of the year, according to the inflows detected by my Quantum Edge system. We picked up a hefty 235 Big Money buy signals (the green bar to the far right on the chart below). In other words, 235 stocks were bought in unusual ways that my proprietary algorithms peg as institutions at work.  The biggest buying day of 2025 was on July 2 with 260 signals. And what sparked that? A trade deal with Vietnam certainly helped, but so did increased expectations for a rate cut after a weak ADP jobs report. That shows us once again that interest rates are the big theme driving markets. Let’s drill down into where that money was moving on August 22. Financial stocks generated 19.5% of Friday’s buy signals. Consumer Discretionary stocks were next with 16.8% of inflows. Health Care picked up 12.4%, and Technology nearly hit double digits.  But we can drill down even further to the individual stocks seeing these Big Money flows. And we then run them through the Quantum Edge system to grade these stocks to see if they are likely to make money going forward. We won’t go into all 235 stocks. But we will talk about the best of them based on three clear metrics… Highest Quantum Score: Clear Secure (YOU) Clear Secure (YOU) provides high-tech identity verification services, most notably at airports. Customers can use fingerprint or iris scans to bypass regular ID checks. The company also provides identity verification at stadiums and arenas and for services like car rentals and online platforms. YOU is firmly in the buy zone with a strong Quantum Score of 93.8 and equally powerful fundamental and technical ratings.  YOU’s buy signal on Friday was the fourth in the past 30 days and the ninth in the past two months, confirming Big Money’s interest in the stock.  YOU is a smaller stock with a market capitalization of $3.5 billion. While that does come with higher risk, smaller companies tend to do better with lower interest rates. It’s cheaper to finance future growth. Clear Secure carries debt at 61.1% of equity, so it could refinance and send any savings to the bottom line. Most Buy Signals in the Last Three Months: IREN Limited (IREN) It’s cool to see which companies got bought in Friday’s pivotal trading, but it also helps to look at trends. Going back over the last three months, IREN Limited (IREN) – previously Iris Energy – had the most buy signals of Friday’s winners. IREN is classified as a financial stock, though it is really a data center business. It provides some financial services but primarily owns and runs data centers. Its data centers are powered by renewable energy sources, and its services are designed for power-hungry applications like Bitcoin mining and AI cloud services. Friday’s inflow signal was the 20th since June 9, and another followed on Monday. Shares have soared nearly 125% in that time.  IREN’s Quantum Score is solid at 85.8, though that is toward the low end of where I typically like to buy. Its fundamentals aren’t the best at 75 – a “C” grade – while the technicals are strong.  There are some red flags with IREN. Its profit margin is still negative at -15.5% as the company is just expected to turn profitable this year after losing money for the last three years. Valuation is also rich after the recent run. I also generally don’t buy stocks immediately ahead of earnings reports, and IREN releases its results today after the close. The company has missed expectations three of the last four quarters. Highest Fundamental Rating: D.R. Horton (DHI) and Futu Holdings (FUTU) We have a tie for the highest fundamental rating among Friday’s Big Money buys. One is a financial company, and the other is a homebuilder – both potential beneficiaries of lower rates. D.R. Horton (DHI) is the nation’s largest homebuilder. I’ve recommended it since June 2023 in my stock trading advisory TradeSmith Investment Report, and it’s up 57.9% in the model portfolio. Futu Holdings (FUTU) provides digital brokerage services and operates wealth management platforms. Both are strong fundamentally with 91.4 ratings. FUTU’s current Quantum Score of 90.6 comes in ahead of DHI’s 85.8. Its technicals also rate higher. And FUTU has 15 Big Money buy signals since June 11, four more than DHI. Shares have risen 66% in that time.  Friday confirmed Big Money’s intention to follow the lower interest rate playbook. Small- and mid-cap stocks received the lion’s share of inflows. And rate-sensitive sectors like real estate, homebuilders, and financials typically do well when the Fed cuts. Growth areas like tech, industrials, and consumer spending also heat up. The biggest winners vary each cycle, and that’s where tracking institutional money flows proves invaluable. We see those roughly $500 billion flows that move through the market every day and use quantitative systems to zero in on the best of the best. It’s a powerful advantage all the time, but it will be especially powerful as interest rates fall and the massive pile of cash on the sidelines – $7.3 trillion in money markets alone! – starts flowing into stocks for better returns. You can learn more about the power of the Quantum Edge system here. Find the stocks in which institutions are betting big. Follow the Big Money. And stack the odds in your favor. Talk soon, 
Jason Bodner Editor, Quantum Edge Pro |
0 Response to "235 Buy Signals and 1 Important Message"
Post a Comment