Our AI Won’t Kill You – But It Might Make You a Better Trader

By Michael Salvatore

Listen to the audio version of this article (generated by AI).

 

In This Digest: 

  • Our newest AI model is live – here’s how to test drive it for free 
  • The gap where Main Street and Wall Street disagree is a sweet spot for profits 
  • Healthcare stocks continue to soar higher – this one is a standout  

Our new AI forecasting engine called this stock’s price to the penny… 

There’s a lot of fear and uncertainty around AI these days.  

But here at TradeSmith, we’re using it to help folks like you level the playing field with Wall Street. 

Take our new Predictive Alpha AI trading model. 

On June 12, 2026, it recommended shares of popular AI storage stock Western Digital (WDC). 

It suggested WDC could rise 9.3% or more over the next month.  

But it didn’t take long for WDC to see that gain… and then some. 

Just four days later, WDC soared as much as 41%.  

And even though WDC did wind up trading almost exactly where Predictive Alpha forecast it would a month later, this quick move gave subscribers of our AI Super Portfolio trading service the chance to close that trade for a 25.3% gain in just three trading days. 

That trade was one of many in our five-stock model portfolio. It rotates automatically through the highest-odds AI-powered price forecasts across our system.  

It hasn’t always delivered gains this strong. But so far in 2026 this year, this approach beat the market 3-to-1.  

And over a six-year backtest that took place over the COVID pandemic, the 2022 crash, 2025 tariff crash, two different wars, swings in interest rates, and more, it returned 239%. 

If you missed the original enrollment last October, don’t worry. This Tuesday, Sept. 22, we’ll be opening the doors again to new subscribers.  

And we’re opening it alongside a major update to our AI engine, which lets our users see forecasts on thousands of stocks up to 21 trading days out – often with historical accuracy rates of 90%.  

Instead of using just one AI model, we now use an “ensemble approach.” We run two separate models and look for when they converge on the same forecast.  

This has increased the share of projections that reached their target price by 7.5%. We tested more than 1.5 million projections across thousands of stocks – so this is a marked improvement. 

This holds up across many kinds of stocks and market conditions, rather than riding on a handful of winners that flatter the average. 

Attending our launch event on Sept. 22 at 10 a.m. ET costs nothing.  

And from today until the event, you get free, unlimited access to the Predictive Alpha dashboard. Pull up any stock we track to see the latest forecast.  

Register your interest in joining up here, and you’ll learn how to gain access right away. 

Wall Street and Main Street are at war over Tesla… 

Colleagues Andy and Landon Swan – the brothers who head up our MegaTrends advisory – have noticed something strange about Elon Musk’s car company, Tesla (TSLA).  

If you don’t know them already, they’re the creators of our Social Heat Score. It processes millions of consumer signals online – what people are searching for, talking about, visiting online, and ultimately showing intent to buy – before they show up on an earnings call. And it distills them into a score from 1 to 100. 

Earnings tell you what already happened. The Social Heat Score shows shifts in consumer demand before it reaches companies’ financial statements.  

And in particular, the Swans look out for times when consumer behavior shifts are bullish for a company that’s out of favor with investors. 

This points them toward stocks where consumer strength is running ahead of expectations.  

These setups pointed them to early trades in brokerage app Robinhood (HOOD) and small nuclear reactor designer Oklo (OKLO). These trades produced a profit of 556% and 461%, respectively, in the MegaTrends model portfolio.  

And right now, the Swans are seeing a similar setup in Tesla.  

People are posting about riding in a self-driving Tesla for the first time and coming away converted – what the Swans call “posts of revelation.” Folks are also talking about putting their teenage kids or aging parents behind the wheel because these AI-piloted cars provide a new layer of safety.  

According to the Swans’ data engine, Tesla customer satisfaction levels are “through the roof.” And this is happening right as investors are cooling on its stock. Tesla’s share price is down about 26% from the all-time high it set in December 2025. 

And thanks to a major upgrade that went live this week, Andy and Landon’s subscribers can see a Wall Street Score and Main Street Score for the first time. 

The Main Street Score tracks what real people say about a company’s products: Do they buy it, love it, tell their friends about it? The Wall Street Score tracks what traders and headlines say about the stock.  

Most of the time those two move in step. But sometimes they don’t.  

It’s like seeing a line out the door for a store at the mall, then checking the stock price for the company and seeing it’s been left for dead. 

And as you can see from the image below, Tesla’s Main Street Score of 67 is much higher than its Wall Street Score of 58 – a significant divergence. 

And there are much bigger divergences out there. 

Insulet (PODD), maker of the Omnipod insulin pump, scores an 89 Main Street Score against a Wall Street Score of just 12 – a 77-point gap.  

Six Flags Entertainment (FUN), the theme park operator, shows 74 against 9 – a 65-point gap.  

And Mattel (MAT), still selling Barbie and Hot Wheels by the truckload, sits at 86 against 19 – a 67-point gap.  

In every case, it’s the same story. Shoppers are buying, and Wall Street hasn’t noticed yet. 

Add these three stocks to your watchlist. The Swans’ data suggests Wall Street is underpricing all of them. 

And if you’re a paid-up subscriber, pull up the Divergence tab yourself and see where Wall Street and Main Street disagree. 

Finally, high-quality healthcare stocks keep outperforming… 

Back on Aug. 10, we flagged Inspire Medical Systems (INSP) in these pages as a small-cap stock to watch.  

It’s a sleep-apnea device maker that had just stepped into a Short-Term Health Green Zone, carrying a Business Quality Score of 93. And it’s now up more than 25% since we mentioned it to you.  

Healthcare has been an enduring theme in 2026. Although hot sectors such as energy and semiconductors have chopped sideways through the volatility, healthcare stocks with strong underlying fundamentals have ground higher. 

And the theme is still hitting strong on our emerging trends screen, which finds bullish themes by tracking high-quality stocks, according to our Quantum Score that are breaking out to new one-month highs.  

This morning, three healthcare names are sitting at the top of that list.  

INSP, the same stock we shouted out last month, leads with a Fundamental Score of 83.4 and a total Quantum Score of 73.7, dragged by weaker Technicals: 

Waystar (WAY), which runs the payment and billing software hospitals depend on, ties it at 83.4… but with a total Quantum Score of 66.6, also dragged by a lower Technical score: 

And Guardian Pharmacy Services (GRDN), which supplies medication management for long-term care facilities, sits at 66.7 and a total Quantum Score of 85.7 – with the biggest one-month move of the three at nearly 25%. 

If you’re picking one to buy, do a deeper dive on GRDN – it has the highest Technical score confirming the one-month breakout.  

To building wealth beyond measure, 

Michael Salvatore signature

Michael Salvatore 

Editor, TradeSmith Daily