Make Money with the Mainstream Media ‘Lie Detector’

By TradeSmith Research Team

Listen to this post
While not a perfect science, a polygraph (lie detector) test is supposed to serve as a time-saver to get down to the truth — Is someone lying or being honest?

In the investing world, there’s a version of a “lie detector” to use that is not only a time-saver… but a moneymaker as well.

It’s LikeFolio’s data.

When Wall Street and the media perpetuate a certain narrative, LikeFolio founders Andy and Landon Swan are able to “hook up” that narrative to their “lie detector” of proprietary data and see if the media narrative matches what consumers are really saying and doing.

Sometimes, Andy and Landon are even able to disprove the most prestigious Wall Street analysts, as you’ll see — by tracking things like:

  • Purchase Intent Mentions — how many people have talked about buying a product or service or have considered doing so.
  • Happiness Levels — the satisfaction people have with a product or service.
  • Website traffic — how many people are visiting a website, which indicates demand for a product or service.
The first part of LikeFolio’s system is important, because the data can tell you which narratives to believe. And the next step is to turn that information into making money.

The AutoZone and Moneymaking Case Study

Back in April 2022, AutoZone Inc. (AZO) was struggling and Bank of America Corp. (BAC) even said it was a stock to short. The narrative being pushed was that demand for the “do it yourself” auto maintenance sector was slowing:

That pessimism took a toll:

With the negative news and what seemed like a self-fulfilling prophecy starting to take shape, investors weren’t expecting much from AutoZone before its earnings report approached.

During all this time, the narrative never passed LikeFolio’s lie detector.

LikeFolio’s system produced a bullish signal on AutoZone before its second quarter 2022 earnings were announced.

And Andy and Landon found that tons of people were posting about shopping at AutoZone, which indicated that its upcoming earnings announcement was going to catch analysts by surprise.

When AutoZone reported official numbers, this was the new headline from MarketWatch….

Wall Street may have been surprised by AutoZone’s strong earnings… but the folks at LikeFolio weren’t.

But if you were tapped into LikeFolio, you knew AutoZone’s earnings were going to be good. The opportunity was out there to pocket a 127% gain in just five days.

Another example of LikeFolio’s lie detector being put to work was through online retailer

Forbes reported extremely pessimistic news with just days left in the fourth quarter of 2021:

Its shares had plunged 41% in just three weeks… and things were bleak as the quarter was coming to a close.

Plus, MarketBeat reported that Wall Street’s consensus had Overstock shares continuing to fall sharply into its February 2022 earnings announcement.

But once again, social-media data and research told LikeFolio a different story.

They received a bullish signal that Overstock’s earnings would be much better than expected for that quarter.

Basically, they could tell the mainstream financial narrative was wrong once again.

Overstock’s shares beat earnings estimates by a whopping 24%… and its shares soared on the good news.

Wall Street wasn’t expecting that… but LikeFolio was.

And the opportunity was there to pocket a 326% gain in just five days.

Professional traders are referring to the coming 40 days of earnings season as possibly the most profitable period of the year.

And the good news is: You don’t have to just hope a company does better than expected — you can also set up trades to profit even if a company misses expectations, giving you more opportunities to make money.