Note from Michael Salvatore, Editor, TradeSmith Daily: On Friday, you heard from Keith Kaplan about the most common biases and blunders we all fall prey to as human beings... and how to protect our portfolios from ourselves .
Now that the human condition is accounted for, let's talk about how to gain an edge in the market... with Tom Gentile, one of America's foremost pattern traders.
Tom describes his approach as "rules-based, calculated trading," and it's one of the best I've seen for navigating this AI-driven market.
It's not that Tom has never fallen for the hype around a stock... taken shortcuts... or lost money. It's that he did all those things early on... learned from them... and spent over 35 years refining his strategy, as you'll hear from Tom today.
Tom will show you how he uses seasonal patterns to steer away from AI stocks that are unlikely to go much further in the next 30 days... and spot the ones set to jump double-digits, instead.
Read on to hear how Tom spots red flags – and opportunities – like the ones he sees with AI stocks now. You can also catch his free presentation on the Final Phase of AI and how to trade it at this link. |
How to Avoid Catastrophic Loss in AI's Final Phase By Tom Gentile, America's Pattern Trader It was the worst thing that ever happened to me as a trader...
This was back in 1987. And I was a naïve rookie in my twenties.
I was watching TV. And one of the analysts was talking up a stock.
I got so excited about all the money I was going to make on this hot tip, I jumped in without doing my own research.
Then Black Monday hit.
On Monday, Oct. 19, the Dow crashed 22.6%... in a day.
That's the worst one-day crash in history.
And it wiped me out – and then some.
You see, I was trading on margin. That's when you borrow money from a broker to trade with.
This is great when your trades are winners because it amplifies your gains. But it also amplifies your losses...
So I got what's known as a "margin call," and I spent the next year trying to pay back thousands of dollars.
That's when I became a rules-based trader. Instead of trading based on opinions and feelings, I shifted my approach. I started trading only when I had a statistical edge.
And to help me sort through all the data and find only the best trades in the market, I began building software.
With the help of data analysts, programmers, and actual rocket scientists from NASA and Raytheon, I built tools that would put the odds in my favor by discovering hidden patterns in the market...
Patterns that often repeat year after year 90% of the time.
After my margin call, I was never going to be at the mercy of my emotions again.
That's how I went from owing thousands... to becoming a millionaire many times over in the next 20 years.
And one of the most powerful tools I developed that got me there is the Money Calendar.
As I'll show you today, the Money Calendar can not only help you spot winning trades, but it can also help spot shifts in the market... like the one that's coming for Nvidia (NVDA) and other top AI stocks.
The reason I'm coming to you today is because this powerful tool is issuing a major warning right now. And I don't want you to make the same mistakes I did as a rookie.
So if you have any money in the markets, I urge you to read below to learn how you can prepare for what's coming. Schedule Profits With the Money Calendar The Money Calendar is one of the first tools I developed to spot hidden patterns in the stock market.
And it's one of the most powerful market-timing tools I have in my arsenal.
Let me show you what I mean...
When I was learning how to trade, I noticed how a handful of stocks had their own seasonal patterns.
These hidden patterns occur regularly in the best 370 U.S. stocks... every day the markets are open.
The Money Calendar uses 10 years of historical data to spot specific windows – usually 35 days or less – when certain stocks tend to move up or down.
What I'm looking for is a bullish or bearish pattern that repeats over the same windows 90% of the time (nine out of the last 10 years).
By constructing a trade around these patterns, my readers have had a significant edge in their trading. In fact, the Money Calendar has given them 182 chances to double their money in the past few years.
And the gains aren't the only thing that makes Money Calendar special...
These trades also dramatically lower your risk – by eliminating those long periods when stocks go sideways or down.
A JPMorgan study showed that the majority of a stock's gains are made in about 30 days every year.
The stock market is open 252 days a year. So that means your stocks are making money only about 12% of the time you're holding them.
And 88% of the time you own a stock, it's either trading sideways or costing you money by going lower.
That's terribly inefficient.
But the Money Calendar solves this problem... Consistent Pattern For example, let's look at AI chip company Taiwan Semiconductor Manufacturing Company (TSM).
Had you bought shares all the way back in 2021 and held them, you'd have made no money. 
But had you followed the pattern based on dates the Money Calendar flagged... You could have pocketed more than 30% in a little over a month earlier this year.
The green and red bars on the chart below show the percentage returns each year during a specific window (usually around 30 days): 
When the bar is green, it means TSM rallied during this window. So, that's where we look for bullish trades.
Here's another chipmaker, Intel (INTC).
Had you bought shares in 2017, you'd still be underwater almost seven years later. 
But with the Money Calendar, it was a different story...
It turns out that for the past decade, Intel went up every single year between March 10 and April 19. 
That's a 100% success rate. Patterns don't get more consistent than that.
And this year was no different. So, instead of watching Intel go nowhere for a decade, you could have made a quick 15% in a little more than a month.
But perhaps the most powerful aspect of the Money Calendar is how it helps me spot market shifts ahead of time... Final Phase of the AI Boom In early 2019, the Money Calendar flagged a small group of stocks forming bullish patterns – fast.
I discovered these stocks were involved with artificial intelligence (AI) – either through software or building advanced chips.
Anyone who listened to me at the time had the chance book gains of: - Almost 250% on a bullish trade on Meta Platforms (META)...
- 326% on a bullish trade on Microsoft (MSFT)...
- And more than 3,150% on a bullish trade on Nvidia (NVDA).
And I urge you to listen to me now.
Because the pattern I'm seeing is showing something else entirely.
I'm calling it the Final Phase of the AI boom.
My research shows the biggest AI names are headed for a crash in the same way the trendiest internet stocks did more than two decades ago.
And if you don't know how to play the last phase of this AI boom, you could end up losing ALL your profits in the blink of an eye.
It will happen so quickly that you won't be able to sell until it's too late.
And you could spend years – even decades – trying to catch up. Luckily, there's a way to capture the gains... and avoid the devastating losses.
As I mentioned, I've dedicated my life to spotting hidden patterns in the stock market. It's my job to use them to predict future events with a high degree of certainty.
And one of my systems is designed to tell me precisely when the Final Phase will hit.
I reveal everything you need to know about how it works and how you can use it to navigate this Final Phase in this free presentation.
I tell you more about what's coming... how to protect your money over the long term... and how to use my trading tool to profit over the short term.
While this briefing is free, it is also time-sensitive – so it's coming down after tomorrow. So, don't miss it: Make sure you're prepared to trade the situation by watching this. Good trading, Tom Gentile
America's Pattern Trader | 
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