PowerTrends

January 2024

Stocks Are Actually Overbought – But That Doesn’t Mean What You Might Think

TradeSmith Research Team

The BMI is what it sounds like – a measure of what Big Money is doing. It calculates all the Big Money signals picked up by my system in the daily data – all the unusual buying and selling of stocks and ETFs – and plots them on a 25-day moving average. It is a fantastic proxy for unusual money flows – the money flows that move stocks. It’s unique, unavailable anywhere else, and stunningly accurate at pinpointing the market’s pivot points. In the huge rally to finish off 2023, the BMI rose all the way into overbought territory (the red dotted line) on Dec. 14. It’s still overbought exactly five weeks later.

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Here Comes the 2024 Election – And Here’s How to Use It to Make Money

TradeSmith Research Team

Longtime Power Trends readers know I’m a data freak. I don’t trust my emotions, gut feelings, or political viewpoints for that matter when investing. But I do trust data – the right data analyzed the right way. It’s the reason my Quantum Edge system identifies winning investments about 70% of the time, and has been shown in independent back testing that it could have beaten the market 7-to-1. My research firm recently went deep into the data showing how stocks perform in presidential election years. Let me share what we found so you can use the analysis to your advantage.

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How to Make Earnings Season Profitable Instead of Painful

TradeSmith Research Team

I don’t expect earnings “watch parties” to be high on most people’s list of fun things to do, but my calendar is full of them as we head into the next reporting season. I’m more of a profits geek than a data nerd – and that’s where the fun comes in. The bottom line is the bottom line. Quarterly earnings give us the most information we ever get about a company’s business. Those fundamentals – along with technicals and Big Money inflows – are the critical factors in my quantitative analysis system that accurately predicts whether a stock will go up or down.

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The Top 3 Stocks in the Top ETF

TradeSmith Research Team

I’m generally not an ETF guy. There are exceptions, of course, but you have to own all of the stocks in an ETF – including the laggards. It’s better to own just the best stocks. I will say that ETFs are great proxies of what’s going on in the market and certain sectors. That’s why I track a bunch of them closely. ETFs help me identify areas of strength in the market and where Big Money is flowing. They can also be great sources of investing ideas. Drilling down into the strongest ETFs, we can pinpoint the top stocks in the funds – and leave the slackers behind.

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Big Banks Are On the Move – Are They a Buy Ahead of Earnings?

TradeSmith Research Team

Over the next few weeks, thousands of companies will tell us how much money they brought in during the last quarter, how much they made, and what they expect for the future. Tucked inside that stampede of earnings are some major moneymaking opportunities and some money-losing dangers. This week brings us the first big guns to release their results, and they’re all big banks. On Friday alone, JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), and Citigroup (C) will tell us how they did last quarter and what they expect here in the new year.

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Wall Street Loves This Magnificent 7 Stock, but My Data Doesn’t

TradeSmith Research Team

In early 2024 trading, five analysts already named Amazon.com (AMZN) as a top pick, according to CNBC. Of 55 analysts with a rating on AMZN, only one is “hold.” The other 54 are “strong buy” or “buy.” I just don’t see it. Or, more precisely, my data doesn’t see it. And since my Quantum Edge system wins about 70% of the time and has outperformed the broader market by 7-to-1 over three decades of data, I’m more confident in my data than prognostications.

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Big Profits in the Foundation of our Tech-Driven World

TradeSmith Research Team

Demand for semiconductors has skyrocketed as technology has continued to grow, innovate, and seep into every corner of our lives. The chips themselves have also improved – and have become much more specialized. Even the latest, greatest tech craze – artificial intelligence – will never reach its full (and mind-blowing) potential without maximum processing speed. Few things in life are certain, but we know that the world will need more and better semiconductors in the future. And that’s a big opportunity for smart investors.

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December 2023

5 Reasons to Invest Now to Grab Your Share of 2024’s Profits

TradeSmith Research Team

This hasn’t exactly been a smooth year for stocks, but the end result is impressive. The S&P 500 more than doubled historical averages with a 25% pop. All three major indexes hit 52-week highs here in December, with the Dow and Nasdaq even hitting new all-time highs. But the ride to those all-time highs was filled with five sharp moves – up, down, up, down, and up. Fortunately, those last two up moves were monsters.

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The Biggest Investing Story of 2023… And Probably 2024

TradeSmith Research Team

Software has given us quantum leaps in prosperity and efficiency.  Just take Microsoft Excel, which at 38 years old, is ancient in the software realm. One person running an Excel spreadsheet can do the work of a million accountants from days past. AI raises our capabilities to a new level. For example, AI helped doctors analyze more than 20 million oncology studies in just 10 minutes to save a patient’s life. No wonder everyone is racing to incorporate AI, from tech giants to tiny startups.

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