Free eLetters

May 2024

Hard Pass on Two of Your Favorite Stocks

May 2, 2024Michael Salvatore

Note from Michael Salvatore, Editor, TradeSmith Daily: Today I’m sharing a recent video from Lucas Downey featured in Power Trends+, a free newsletter all about the institutional capital driving great stocks higher over time. In this video, Lucas takes four tickers submitted by readers and grades them on fundamental, technical, and balance sheet metrics. Check out Lucas’ breakdown below, and don’t forget to submit your own stock ideas to [email protected] for another round of analysis due out to you next week.

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Is This the Return of the Lost Decade?

May 1, 2024Michael Salvatore

The price action guides the narrative, and vice versa… Why Tesla’s big gain was too much, too fast… Where your tax dollars are going (it’s not good)… The “Lost Decade” thesis is still in play… These two sectors are quietly outperforming stocks… How to stay ahead of stagflation… By Michael Salvatore, Editor, TradeSmith Daily On Wednesday, April 24, we declared “History Says TSLA Is a Buy.” This was after a bout of price action that ranks among the ugliest in the

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April 2024

Power Trends+: Analyzing Four New Stocks Recommended by You

April 30, 2024Lucas Downey

Watch Now… Every time you buy a stock, you’re also rejecting thousands of other stocks. It’s important to analyze both winners and losers to better understand how to find the good and avoid the bad. You continue to help us with that by submitting some interesting companies to analyze. Honestly, we haven’t heard of some of these before you sent them in, but we’ve been impressed! Today, my business partner and fellow TradeSmith analyst Luke Downey is back to share

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A “Meat and Potatoes” Superstar Stock in the Making

April 30, 2024TradeSmith Research Team

By Lucas Downey, Contributing Editor, TradeSmith Daily The hunt for superstar stocks in the making should be the goal of any investor. You know the ones I’m talking about… the Apples (AAPL), ExxonMobils (XOM), and McDonald’s (MCD) of the world. Companies that dominate their industry year after year… decade after decade. The trick, of course, is finding them long BEFORE they become superstars. I’ll admit, there’s no bulletproof way to do this… But there is an easy-to-follow recipe of factors that

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Will This May Day Be a Celebration… or a Distress Signal?

April 29, 2024Lucas Downey

If you invest in the highest quality stocks to begin with – those with the best fundamentals, strong technicals, and Big Money flowing in – you’re likely to do yourself more harm than good by selling and hiding for six months. I dug into FactSet data and compiled the average returns by month for the Dow, S&P 500, Nasdaq Composite, and Russell 2000 small-cap index (RUT). And yes, there’s some seasonal weakness in there, but the most volatile month is clearly September.

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How Biden’s Radical Tax Ideas “Trickle Down”

April 29, 2024Michael Salvatore

Checking in on the U.S. government’s debt problem… Biden’s unrealized capital gains tax and the “trickle down” effect… How it’s inspiring the biggest trend in Big Tech… Use this tool to find the market’s best dividend plays… By Michael Salvatore, Editor, TradeSmith Daily Breaking news: The U.S. government has a debt problem. At the latest reading, public debt was equal to 121% of U.S. GDP. Nominally speaking, it’s over $34 trillion and accelerating. Higher interest rates are making the debt harder

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How I Invest (And Why You Shouldn’t Copy It)

April 28, 2024Michael Salvatore

Note from Michael Salvatore, Editor, TradeSmith Daily: Give a man a fish and he’ll eat for a day. Teach a man to fish and he’ll eat for the rest of his life. Among many other principles, this simple idea stands out as the core of what TradeSmith offers: a way to “learn to fish” for profitable trades in the market, so you never go hungry. We all go about this in our own way, and TradeSmith’s tools give you many paths to walk. But

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This Legacy-Making Trade Is Hiding in Plain Sight

April 27, 2024Michael Salvatore

By Michael Salvatore, Editor, TradeSmith Daily There’s no better word than “anomaly.” It makes no logical sense that a single sector of the market is trading so bullish, is so flush with cash, is so shareholder-friendly… And at the same time, is the single cheapest sector in the stock market by every metric that matters. Whatever the reason for this anomaly, it means big opportunity for you. For investors who can briefly look past the attractive veneer of big tech’s A.I.

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There’s a Whole Lotta Love for Music Streaming. Let’s See If My System Loves It Too.

April 27, 2024Lucas Downey

Music streaming has come a long way since illegal file sharing applications like Napster and LimeWire. Apple introduced its iTunes store and the iPod in 2001, and streaming services like Pandora, Spotify, and YouTube all launched shortly after in the mid-to-late 2000s. Despite not being well-received by the music industry, streaming became the dominant revenue generator for music labels in the mid-2010s. And according to the Recording Industry Association of America (RIAA), music streaming now makes up an incredible 84% of the U.S. music industry revenue – a whopping $43.4 billion in 2022 alone. Global music subscribers surged 26.4% during the pandemic to 523.9 million. The leading platform with the largest number of paid subscribers is Spotify (SPOT), which just reported first-quarter earnings on Tuesday and shot higher as a result.

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The GDP Print Nobody Wanted

April 26, 2024Michael Salvatore

Government data breaks the “soft landing” scenario… Treasury yields soar… The yen crumbles… But there’s still plenty of money to be made… In earnings trades, cheap sectors, and more… By Michael Salvatore, Editor, TradeSmith Daily The warning signs were all there. The flight to gold and utilities, then staples and energy. The slow-but-sure uptrend in Treasury yields. The dip below the 5% “batten down the hatches” risk-off level. Did you follow them? If you didn’t… don’t worry. It’s not an easy thing to do. Stocks

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Is This Finally the Tesla Turnaround? Here’s What the Data Says

April 25, 2024Lucas Downey

“It was the best of times, it was the worst of times…” With apologies to Charles Dickens, his classic opening line from “A Tale of Two Cities” also describes the last five years for Tesla (TSLA) shareholders. The first half was a party as the stock shot 2,500% higher, and the second half has been a long-lasting hangover. Itchy-finger short-term traders may have snagged profits on some of the quick upswings the last two-and-a-half years, but those who bought in late 2022 and have held on are licking their wounds.

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This Buy Signal Is Undefeated Since 2008

April 25, 2024TradeSmith Research Team

By Lucas Downey, Contributing Editor, TradeSmith Daily If your portfolio got slammed last week, you’re not alone. The S&P 500 got steamrolled, dropping 3% and easily slicing through one of the most widely followed technical benchmarks: the 50-day moving average. The reason? Most would point to surging interest rates. The U.S. 10-Year yield broke above 4.65%, a level last reached in November. This has caused the bears to rally together, chanting the popular interest-rate scare mantra: higher for longer. But here’s what

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