Our New Top 5 Watchlist Can Spot the Right Stocks at the Right Time
The stock market has gotten a lot more volatile lately… but you wouldn’t know it by looking at the VIX.
In fact, the CBOE Volatility Index (VIX) is hovering at just 16 today, well below its March high in the mid-30s.
The VIX measures expected volatility in the S&P 500 Index overall, which at 16 doesn’t look that risky.
But to get a clearer picture of volatility, you’ve got to dig deeper… down to the individual stock level.
What the VIX Won’t Tell You
For that, you need to watch the CBOE S&P 500 Dispersion Index (DSPX).
“Dispersion” simply measures the difference in volatility between some stocks and others.
When dispersion is high, as it is now, the stock market as measured by VIX might still appear calm on the surface.
But huge stock swings are happening beneath the surface.
Large gaps between the Dispersion Index and VIX eventually close. Typically, that happens when dispersion declines – along with stock prices – as the VIX spikes higher.
And right now, volatility at the single-stock level, measured by dispersion, is hovering above 44.
That’s the highest reading since the pandemic crash in 2020 and the tariff turmoil in 2025.
And you can see the real time evidence by looking at the daily swings of individual stocks and sectors. Take semiconductors for instance.
Over the past three weeks, semiconductor stocks have been on a wild ride, soaring nearly 20% in just two weeks, then falling nearly 8% last week alone!
Volatile moves like the ones we’re seeing today in sectors, and even more so for individual stocks, make it very difficult to predict what’s coming next.
But what if you have a high degree of confidence in a stock’s move, knowing not just which direction it would go, but by how much it could move in the next month?
That’s where our Predictive Alpha AI system is worth its weight in gold.
Predictive Alpha: Your AI Edge for the Next 21 Days
Predictive Alpha is our exclusive artificial intelligence-powered tool that provides daily price projections for more than 2,300 stocks and ETFs over the next 21 trading days or less.
Our algorithms crunch historical pricing and trend data on thousands of securities and broader market trends. Predictive Alpha then produces an individual price projection for every stock we track, based on each stock’s unique historical patterns.
Simply type the symbol for any stock into the Search for Ticker box, then click on the Predictive Alpha tab.
Here’s an example of a Predictive Alpha projection for Micron (MU). At the time of this writing…
- Prime Projection Date: Our most accurate price projection date for MU is July 30, 2026
- Projected Target: The projected target price for MU on that date is $1,312.46
- Expected Move: Projected target gain for MU is +13.7%
- Historical Target Accuracy: Past projections have reached their price target for MU 82.8% of the time
Subscribers can also access the Predictive Alpha system by clicking on the TradeSmith Finance Dashboard page, then scrolling down to Predictive Alpha, as shown below:
Please Note: If you don’t see this on your dashboard – and would like to – simply contact our Customer Care team at 888-623-0858 to learn more.
Depending on your subscription level, you could have access to some or all of these features, including:
- Stock ticker searches, ranging from three per day to unlimited, depending on your subscription level
- Options can show you the trend that a given stock’s options are in (Bullish, Bearish, or Neutral) and show you the best options strategies/trades for it
- Top Bullish and Top Bearish stock lists, daily
- Alerts you can set and view based on price predictions that you follow
- **NEW** Predictive Alpha Top 5 Watchlist – exclusive to the Predictive Alpha and Platinum subscriptions, this watchlist updates daily and lets you build a “set it and forget it” monthly portfolio
Introducing the Top 5 Watchlist
The Top 5 Watchlist is an all-new feature exclusive to Predictive Alpha subscribers and Platinum members only. It’s a monthly rotational portfolio powered by the Predictive Alpha AI.
With it, you can simply buy a set of the top five Predictive Alpha stocks to hold for the next month. The following month, you replace them by rotating your proceeds into the next set of five top stocks to buy.
The Predictive Alpha AI engine uses proprietary, unique algorithms to comb through billions of data points across thousands of stocks, identifying patterns that have historically preceded specific price moves.
Every stock that makes the Top 5 must clear three key filters: trend direction, historical accuracy, and risk. The result is a focused list of stocks offering the best upside potential over the next month.
This is a quick and easy approach to Predictive Alpha, if you want to harness the predictive power of our AI, without watching the market every day.
You just check the Predictive Alpha Top 5 Watchlist once a month (on the same trading day; we like to recommend the first trading day of the month), place a few trades, and you’re done.
Our backtest results show this strategy has the potential to more than double your money every two years.
Keep in mind, there’s no way to know for sure what will happen tomorrow in this volatile market… But Predictive Alpha price projections can give you a higher degree of confidence about which direction a stock will move – and better yet, by how much.
Mike Burnick’s Bottom Line: Successful trading and investing is about getting your timing right, and that’s especially true in today’s volatile markets. Our Predictive Alpha system provides powerful, real-time stock price targets, right down to the penny. While it’s not a crystal ball, Predictive Alpha can guide you to the best stocks at the right time.
Good investing,
Mike Burnick
P.S. Speaking of getting your timing right – my colleague Landon Swan from MegaTrends, along with Joel Litman from our affiliate, Altimetry, believe they’ve found a case where timing couldn’t be more precise.
According to their research, President Trump is about to tackle AI’s biggest bottleneck: energy. As he does, three rare market catalysts are set to converge on July 10 – a combination Landon and Joel believe could ignite a supercycle among a small group of little-known energy stocks that Wall Street’s biggest players are largely unable to touch.
If you missed this morning’s U.S. AI Summit, the replay is still available – including one free stock pick, that Landon and Joel believe is positioned to move first.