One of the areas that we at the hot stocks alerts team place special emphasis on is smart money movements
This is the big money that usually quietly takes positions
Big money without much noise
You know this from news about insider buying - CEOs, board members, politicians, and more.
But recently we started tracking additional, larger money flows - ones that can even influence market movement.
As part of the channel team's monitoring program, we track pension fund rebalancing - or buying and selling by global hedge funds
You can see an example of this here when we published in advance about expected pension fund buying, which again led to one of the best days of the year
But the icing on the cake are systematic funds (CTAs)
We diligently follow the reports of major banks, especially Goldman Sachs, Morgan Stanley, and Bank of America, who publish weekly forecasts on the positioning of these funds
You can see an example of this here when we published that algo funds had calmed down and were expected to be buyers in a rising market; we included this data in our considerations where we predicted a temporary bottom in the markets, which indeed proved to be an accurate forecast in retrospect
And now let's go back to the table above
According to Goldman Sachs, algo funds are expected to be on the buying side in the coming week in any scenario
Yes, you read that correctly
No matter if the market goes up or down, they are expected to buy
And the truth is broader
These funds are expected to be on the buying side in S&P 500 stocks in any scenario throughout the coming month
While these are not aggressive purchases, it is certainly a positive signal and definitely noteworthy
While we don't know when the market will rise or fall, we will continue to monitor and update on smart money movements