The Bull Is Back in Town

By TradeSmith Editorial Staff

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While we entered an “official” bull market near the start of June – a 20% rally for the S&P 500 from its October lows – you wouldn’t know it from recent news headlines:
  • Putin Warns of Positioning Nuclear Weapons in Belarus
  • Deutsche Bank Sees Recession as Inevitable
  • Why Inflation Around the World Just Won’t Go Away
Just going off those headlines above, you would think nothing has changed since last fall.

But Jason Bodner, the inventor of the Quantum Edge investing system, recently told me he isn’t surprised.

“I long ago found that the alleged ‘reality’ portrayed in the headlines almost never reflected the true reality playing out with stock prices,” he said.

And while Jason says he doesn’t want to minimize the potential fallout from any of those headlines above, it’s clear from his data that the market isn’t all that worried.

His Quantum Edge “radar” is picking up substantive buying in all sectors, but the one sector he has continually pounded the table on is tech.

Using the Technology Sector SPDR Fund (XLK) as a barometer, Jason’s system is tracking way more buying than selling in tech since the middle of May:

“Going forward, humanity’s reliance on tech is not going to shrink. It’s going to grow,” Jason told me.

And his system just picked up on some massive buy signals for a tech company that is tapping into the power of artificial intelligence (AI) that will allow companies to save time, cut costs, and boost efficiency.

I’m talking about Adobe Inc. (ADBE).

AI Takes Big Tech to Next Level

Adobe got its start by developing a specialized software called PostScript that became an international standard for computer printing. Adobe then developed an array of software and services and was the creator of the Portable Document Format, an international standard we all refer to by its acronym – “PDF.”

Then there’s the company’s flagship product: Adobe Photoshop.

Reportedly used by over 90% of the world’s creative professionals, the image tool is so ubiquitous that it’s now a synonym for images that look too perfect; we say they look “photoshopped.”

Sometime this year, Adobe Photoshop will get an “AI upgrade” through the launch of the tool Generative Fill, which will allow users to add or remove objects using text prompts.

In an AI demo video, Adobe shows how easy it is to move a deer from the woods:

To the city:

And you can do this in seconds – saving time and money even as you elevate the creativity of all you do.

And Wall Street’s Big Money players see the dollar-sign potential of Adobe’s latest innovation.

Just in the last 30 days alone, 13 buy signals flashed in Jason’s Quantum Edge system:

Here’s how that stacks up against some of the other “hot” AI stocks right now: Nvidia Corp. (NVDA) has had five buy signals over the last 30 days and Advanced Micro Devices Inc. (AMD) has had six.

Bottom line: Despite the doom you may see in the headlines, what’s most important is what people are doing with their money. And what the Big Money is doing – which is filled with some of the smartest and most powerful investors and institutions in the world – is pouring into tech stocks. Like Adobe. That’s the type of information and insight Jason provides in his Quantum Edge services.

Enjoy your Sunday,

Keith Kaplan
Keith Kaplan
CEO, TradeSmith