The Trade that Changed My Life… and Inspired My Stock-Picking Breakthrough

It’s probably true for a lot of us, but it’s definitely true in my case…

One of my early jobs changed my life.

It was 2010, and I was head of a trading desk for Cantor Fitzgerald, one of New York’s famed investment banks. And while I didn’t know it at the time, my experiences set me on a course that led to the development of a quantitative stock-picking system – one that has beaten the market by 7-to-1 over 32 years of data.

I even remember the phone call that started it all. My job was to match big institutional buyers with sellers, and a friend of mine who managed money at another bank was on the line. He wanted to buy shares of a stock (we’ll call it KDQ) for one of his big clients.

I started working the phones – yes, we still did a lot of our work on the phones in the “old days” 13 years ago. Within a few minutes, I found someone who was selling 100,000 KDQ shares – about $2 million worth – and offered those to my friend. He snapped them up immediately.

“Do you have any more?” he asked.

I went back to work, calling friends, acquaintances, and anybody else I could find to inquire about KDQ shares. By the time the trading day closed, I had sold my friend one million shares of KDQ – valued at about $20 million.

That’s Big Money already. But I wasn’t finished.

Not even close.

I sold my friend another million shares the very next day. By that point, all the money flowing into this stock was lifting its price.

The same thing happened the third day … another million shares … and another bump in the price.

By the fourth day, I knew this was big.

I was also watching… and learning.

This “foraging” mission for KDQ shares continued for about a month. By the end of that stretch, I’d hunted down and sold my friend every spare KDQ share I could find – around 20 million in total.

The stock had surged 70% in those four weeks – and people were noticing. It even made the headlines on CNBC.

As this saga played out, I had no idea who the “ultimate buyer” was. I just knew it was my friend’s client. But not long after all was said and done, I discovered that a $20 billion hedge fund had acquired more than 15% of KDQ.

Through me and some of my competitors (who’d been tasked with the same mission), this fund snapped up 50 million shares of this stock.

And the stock price had soared.

What If We Knew?

The “KDQ Affair” showed me the huge gains that were there for the taking – for investors who’d also bought the stock while that hedge fund was buying those 50 million shares.

Anyone who owned KDQ on the day of the first order – or who knew what was happening so they could buy it – would have gained 70% in just four weeks. That’s seven years of average market returns – in just one month.

But how could anyone know?

After all, hedge funds and institutions are super-secretive by nature – and do everything in their power to keep their buying quiet.

Big Money actually moves stocks, so these players work to diminish the “price-increase effect” even as they keep buying shares. They spread their purchases out by buying in chunks – big chunks, but still chunks – over days or weeks.

The fact is that some people do know. These shadowy Wall Street operators are fully aware of these huge trades before they happen. And they profit off that knowledge.

The rest of us? We’re on our own.

At least we were.

I didn’t get rich off that trade, but seeing what happened over those four weeks put me on a mission – one that culminated in my system and my proprietary Quantum Score that evaluates the health and potential of more than 6,000 stocks every day the market is open.every day the market is open.

Some of the algorithms I designed for it let me spot the footprints of Big Money investors on their own KDQ-like missions. Those footprints are invisible to most other investors – but not to me, thanks to that early job.

All these years later, this system gets me – and my readers – into the stocks Big Money is buying.

It’s legal, predictive – and powerful.

Here’s Where Big Money Is Flowing Now

After facilitating that trade, I threw myself into the research. I analyzed every piece of data I could find. I asked the smartest people on Wall Street how they decide which stocks to buy … and how they go about buying them.

If you know what signals to look for, the hedge funds and other operators can’t hide what they’re doing. My system gets you in so you can hitch a ride on the rally.

As I built my Quantum Edge system, I wrote algorithms that were able to pore through the reams of data – and tell me when Big Money is buying unusually large amounts of stock. This algorithm was powerful enough to tell me which markets, sectors, and specific stocks the Big Money is flowing into.

Even in volatile markets, Big Money never really stops flowing. The lineup of popular stocks may change from one stretch to another, and the money flowing into the broad market may ebb at times. But with the vast majority of money managers being “long only” – meaning they don’t make money on down moves – they must be invested in stocks.

They can’t just sit on cash. That’s not what their clients pay them for, and they can’t charge fees on cash positions.  

Knowing where that Big Money is going is a huge advantage. I can tell you that Big Money buying overall has picked up in recent days, and that both the Technology and Discretionary sectors have been the strongest in 2023. There are some enticing opportuities in both sectors.

When we detect Big Money flowing into stocks that are strong fundamentally and technically, we have the stocks that generate that 70% win rate… and allow you to compound your wealth by succeeding over and over again. 

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends

P.S. My system picked up fresh Big Money buy signals on three of our stocks in my new Quantum Edge Trader service.

Those three stocks also jumped more than 10% on average last week.

To learn more about the system and how to benefit from it, you can click here for more information.