Real Estate & Energy Stocks Are Getting Scooped Up

Looking at the market head-on doesn’t give you the full story. That’s why I like to look under the hood for insights.

A great way to do that is to look at the MAPsignals Big Money Index. It measures the rate of Big Money buying and selling in stocks. If the index moves up, expect the market to ramp. If the BMI falls, that means sellers are increasing. That’s usually bearish for stocks.

Unsurprisingly, it’s recent action is very similar to the market’s return… .i.e. it’s been quiet too:

But, under the surface of the Big Money Index are individual stock and sector movements. And 2 sectors are benefiting from outsized buying…which is positive for the groups.

Energy And Real Estate Stocks See Big Buying

Each week at my research firm, MAPsignals, we isolate the prior week’s buying and selling by sector. Anything that’s meaningful, we highlight in yellow. It marks that the sector saw 25%+ of its universe saw outsized buying or selling.

This just points to increasing momentum for the groups. And to show how these sectors have been steadily getting Big Money buy signals, the below sector charts track’s the groups’ momentum.

The Real Estate Big Money Buy Index chart plots a 5-week moving average of buys in the group relative to its sector size. This is a great way to measure the velocity of buying.

If the green line is increasing, buying is ramping:

Now, let’s check out Energy:

Clearly, both groups are attracting capital.

The bottom line is this: The market appears to be range-bound, but taking a deeper dive we can see certain areas booming.

Keep Real Estate and Energy stocks on your radar. Chances are they have more upside in the coming weeks.

Disclosure: the author holds no position in SPY, IYR, XLE or the S&P 500 at the time of publication.

Learn more about the MAPsignals process here: www.mapsignals.com

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