Longtime Power Trends readers know about what I call The Great Convergence. It’s the next phase of the massive technology revolution that will lead to unimaginable breakthroughs, and it will be made possible when artificial intelligence joins forces with quantum computing and next-generation networking. It’s a tremendous opportunity for investors, as well as a potential danger. I’m sure we will continue talking about it for years to come. And today, I want to share the insights and analysis of Louis Navellier with you. He is a legendary quant investor who has helped a lot of people make a lot of money through the years.

There’s a lot going on right now! The market is giving us whiplash, quickly moving on from the previously loved mega-cap tech stocks to giving small-caps a boost higher. We’re in the midst of earnings season, which always has its ups and downs. And, well, this crazy election year might also be giving you whiplash.  We’ve talked (or will talk) about all these things in regular Power Trends issues, so today, we decided to keep it simple and focus on stocks.

As a kid, I really wanted X-ray glasses. Once they arrived in the mail, though, it didn’t take long to realize it was all a sham. They never worked as advertised. They were just flimsy plastic with cardboard where the lenses should be and a tiny pinhole covered with transparent material. This supposedly gave the illusion of X-rays. I was so disappointed. I quickly realized it wasn’t about seeing my bones or fighting crime so much as it was wanting an ability others didn’t have. Over the years, I’ve thought about that often. Because in the end, I made my own version of X-ray glasses.

The 50 largest stocks were up 22.5%, easily outpacing the market-cap weighted 15.8% return, and more than four times the equally weighted gain of 5.2%. Another surprising and sobering data point from the last few weeks: Nearly 60% of stocks in the index – or 300 out of the 500 – were below their 50-day moving averages. That’s a widely used technical indicator, and stocks below their 50-day are considered weak. But like those cicadas, something else is emerging. And it can make you a lot of money.

I started my investing career more than two decades ago as a trader, and I was awful. In my first three weeks, I made every mistake in the book. I knew I needed help, or I was going to fail at that assignment, too. So, I turned to computers and designed a quantitative system that did a lot of the work a heck of a lot faster than I ever could.

Something is emerging in the market, and you should be excited. We’re seeing a major shift. Those top 50 stocks in the S&P 500 – the large-caps that have been carrying the index lately – are overweight and the shoe is about to drop.   Those unloved small-caps are about to attract Big Money, and the weight will be shifted in their favor.  In today’s Power Trends+, my fellow TradeSmith analyst and business partner Luke Downey will show you the small-cap study that put us ahead of the rest, along with a couple others to show you where the market is headed.