The Little-Known Driver of the Massive Move in Stocks

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Stocks continue to soar… Since its lows in late March, the S&P 500 has gained roughly 40%. It’s now darn close to hitting new all-time highs.

You might not realize it, but much of this move has been powered by “machine buying.” Specifically, hedge-fund quant and algorithm programs continue to drive market gains. The good news is, these models continue to work in our favor. So we should expect the recent surge in stocks to continue.

Let me explain…

The market has a secret driver – and few investors even realize it exists. It’s the computer-driven buys and sells that come from sophisticated money managers.

Some estimates place industry assets at $1 trillion. One area that I like to focus on is commodity trading advisors (“CTAs”). Wall Street brokerages estimate that this part of the industry has about $250 billion in assets. But those assets can be anywhere from two times to 10 times levered… So $250 billion in assets can have market impact of anywhere from $500 billion to $2.5 trillion.

These quant and algorithmic hedge-fund models operate much differently than those of their competitors. Typically, their investing style is driven by the market hitting key trigger levels on the way up and down.

Let’s look at the S&P 500 Index. When the market is rising, it will typically hit key levels – like the 50-, 100-, or 200-day moving averages (“DMAs”). These are simply momentum measures that smooth out volatility to show the short-, medium- and long-term trend.

The chart below shows these levels…

Read the rest here.

Powerful 5G Prediction from the Man who called NVIDIA’s Rise

Last time Jeff Brown made a prediction like this was three years ago when he predicted NVIDIA would be the number one tech stock that year.

He was right. And anyone who listened to him could have done very well. (He’s still bullish on NVIDIA by the way)

You see, for over two decades Jeff has worked with some of the hottest names in tech in both Silicon Valley and Japan, including NXP Semiconductors and Qualcomm.

And now he’s predicting big things for 5G in 2020.

Prediction #1: There will be a tidal wave of 5G devices in 2020 and sales of 5G phones will far surpass 300 million units.

The current forecast is that there will be about 300 million 5G-enabled handsets sold.

But according to Jeff, that number is far too low. He believes there will be a tidal wave of 5G phones sold in what will be the largest smartphone upgrade cycle in five years.

To start, Apple has been quietly gearing up for the 5G-enabled iPhone launch, which is expected for September. Telling suppliers they now expect to ship more than 100 million 5G-enabled iPhones. That’s up from the company’s previous projection of 80 million 5G iPhones.

Prediction #2: The company at the heart of the 5G race will be the #1 Tech Stock of 2020

As more 5G networks come online, we’ll begin to see things like virtual reality, self-driving taxi fleets, or holographic projection.

Bottom line, investors are going to make a lot of money this year on 5G.

And the company at the heart of it all is Jeff’s pick to be the number one tech stock of 2020.

To watch Jeff’s full presentation about The Number One Tech Stock for 2020, click here.

You’ll get instant access to a recording of Jeff’s presentation. And you’ll also get regular updates from Jeff on technology and investing trends to watch out for.

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