To The Moon

$AMC Entertainment(AMC)$

The market continues to slosh around, with defensive sectors remaining bullish, while growth’s “usual suspects” keep being sold. Investing in this kind of environment can make you skittish!

But I’m a bull at heart. I see reasons to be positive. For instance, even among the battered sectors, there is fundamental strength. And positive, recent Big Money action is making me take notice.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, measures Big Money investor activity. That includes institutions, pension funds, big individual investors, and so on. Our research shows Big Money moves markets.

In fact, we created the Big Money Index (BMI), which is a 25-day moving average of Big Money buy and sell activity. It tends to be a leading indicator of market movement. Here is the BMI over the last six months laid over SPY:

It’s been volatile this year. But the BMI is trending up of late. Looking deeper, we can see ample amounts of buying and selling underneath the surface:

Still, defensive sectors are where the bulls continue to run. Energy, utilities, and materials lead the way:

Notice though how there are still strong fundamental scores throughout, even in lowest ranking sectors. In this kind of market, it’s good to spread the love around. You never know which way the choppiness is headed, or in which direction. So, the top five stocks to buy for April 2022 cover different sectors: ULTA (staples), FANG (energy), TSCO (discretionary), LPLA (financials), and CHKP (technology).