Editor’s Note: The markets are closed today for the Juneteenth holiday. With a break in the trading action, it’s a good day to bring you Part II of my interview with TradeSmith CEO Keith Kaplan on what’s going on right now and what we can expect.
In Part 1, we talked about my expectation for continued churning in the summer before things really start to heat up heading into the end of the year.
Here in Part 2 of our talk, we talk more specifically about how to invest in this market, and I shared five high-ranking stocks to put on your radar.
Keith Kaplan (KK): You gave us the macro narrative last time and outlined your projections for stocks.
How should individual investors best take advantage of your predicted outcomes? What strategy should they use? What types of companies – and what types of businesses – should investors key in on?
Jason Bodner (JB): The way my system works is to identify when big professional investors are moving unusual amounts of money into stocks.
When Big Money buys the best-ranked stocks, we hop on board. The beauty of this method is that it doesn’t matter what the company does or what sector it operates in.
What does matter is the company’s health: Does it make a profit? Are sales and earnings growing? Does it have low debt levels? Is there Big Money moving into it?
When we think in terms of those criteria, it doesn’t matter if the company makes microchips or cars, or mines for gold.
The easiest thing to remember is to focus on the best and leave the rest.
KK: How does your “Quantum Score” – and broader Quantum Edge System – contribute to this? Maybe mention a win or two you’ve generated for your followers.
JB: I spent decades and hundreds of thousands of dollars developing the system. In short – running a trading desk gave me access to the most successful professional investors out there.
What I did was to ask these pros what they looked for in a stock. I took in hundreds of qualifiers and ultimately whittled them down to 29 factors.
It is quite literally an artificially intelligent compilation of the best and brightest minds within investing.
These factors all roll up into one powerfully simple “grade” called the Quantum Score.
All you really need to know is this: If it’s between 70 and 90, it has got major upward potential. Seeing a Big Money buy signal on a stock ranked 70-90 is how target massive potential winners.
A company called Trade Desk (TTD) was one in my prior investing service where my subscribers enjoyed an 11x gain.
In my Quantum Edge Pro service, we’ve enjoyed a move of more than 50% on Arch Capital Group (ACGL) in just a few months.
There are many others, but those are just two quick examples.
KK: Any types of companies – specific sectors – appeal to you right now?
JB: The Big Money flows have been moving into tech. That’s why, in both of my services, we have a high concentration there. Chipmakers, semiconductors, and cloud stocks have been really hot this year, and our biggest gains in 2023 are coming from chipmakers and software stocks.
Oddly enough, Arch Capital is an insurance company, and as we said, we’ve had a big win there.
And the great news recently is that my system is picking up more buying – and, just as importantly, less selling – in the sectors that have struggled this year. That increasing breadth is another good sign of some potentially really good months ahead.
But like I said before, it doesn’t really matter what the companies do. It only matters that they have the right scores and setup.
KK: Share a couple of names – a couple of stocks – that are on your watch list right now. What’s appealing about them?
JB: For me, it’s all about the company’s Quantum Score – and whether the shares are being bought in an unusual way.
So, if it scores well – and the stock is being accumulated – that’s what I care about.
For that reason, my watch list might stay the same in a trending market, or switch around in a volatile one.
Some names that grabbed my attention recently with high scores are:
- Advanced Micro Devices Inc. (AMD): 89.7
- Arista Networks Inc. (ANET): 89.7
- Axcelis Technologies Inc. (ACLS): 89.7
- Dynatrace (DT): 89.7
- Copart Inc. (CPRT): 87.9
I actually already recommended three of those five stocks in my services, and they are up an average of 30%.
You’ll also notice those are mostly tech stocks – aside from CPRT, which does online car auctions. Again, whatever cream rises to the top is what I care about.
KK: This is great stuff. Thanks, Jason.
JB: Thanks for asking me. It’s an exciting time, and I really think there will be a lot of money to be made as we move further into 2023.
Editor’s Note: As a reminder, you can access Part 1 of my interview with Keith here. To learn more about my Quantum Edge stock-picking system and how to put the power of artificially intelligent systems to work for you, you can click here.