Stock Market: Lots Of Outflows. Need A Washout

Money's flowing out of the stock market (NYSEARCA: SPY).

Almost $50B exited equity markets in the last few weeks according to Lipper.

Tech's been a leader. So when you have negative announcements and negative reactions this could feed on itself.

Tech's been the support for markets helping it move higher, leading it higher. When that turns investors need to turn somewhere.

What's interesting is the outflows predicted the negative reactions.Or, because of the outflows the market didn't have the buying support to scoop up down stocks. We think it's the latter.

While the market acted like a champ through all the tweets and tariff calls, outflows could be signaling a lack of support.

We'd like a washout, frankly to make it a little easier to pick up great stories on the cheap.

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside.