What Our Four New Powerhouse Analysts Bring to the Table  | BY KEITH KAPLAN
CEO, TRADESMITH |
Earlier today, I announced the details of the biggest-ever expansion to our business… and by extension, the biggest-ever expansion of value to our Platinum members. The rumors are true… We’re bringing four highly credible and accomplished analysts into our fold. They operate in different fields but are all coming together to make TradeSmith an even more valuable source for ideas… - One of them is a master of historical data, who isolates rare special situations as a setup to trade quality stocks…
- Another, a trading veteran and legend who utilizes volatility and momentum to score rapid-fire, often intraday options-trading wins for his subscribers.
- And the last two come in a pair, having founded the premier sentiment analysis company and created a powerful engine for spotting consumer trends early.
Regular, dedicated readers know well who I’m talking about. In that same order, I’m talking about Lucas Downey, Jeff Clark, and Andy and Landon Swan. Starting today, all four of these powerhouses are joining the TradeSmith business to deliver their best ideas to our subscribers. And everything they publish now belongs to our Platinum members. Along with some big upgrades we’re implementing, they represent the biggest enhancement to the Platinum repertoire ever seen. But while I am inviting everyone today to consider joining us as a Platinum partner and enjoying everything these gentlemen have to offer, that’s not the only reason I’m writing you. Today, I’d like to share with you a look behind the curtain to see precisely why their particular expertise will be so beneficial to you as a TradeSmith subscriber. You’ll get a view of the angle each of them takes on the market action, what they think is the best path forward for you, and an actionable idea you can use… Lucas Downey: Forced Selling Begets Forced Buying Lucas has made it crystal clear what he thinks of the recent 10% selloff in the major market benchmarks. It’s a buying opportunity. If you follow along with Lucas’ writing here in TradeSmith Daily, you’ve likely already got that sense from him. And hopefully you’ve acted on his recent recommendations to buy into the bloodshed. But this isn’t the only place you can hear from Lucas. He also runs the TradeSmith’sAlpha Signals newsletter, one of the exclusive perks for our Platinum members, where he issues actionable recommendations based on his signal studies. Here’s a piece of what he recently shared with subscribers, regarding the February-March volatility… We’re in correction territory, right? That means that from peak to trough, we have fallen 10% for the S&P. Check this out. Since 1950, here are the declines, the number of occurrences, the frequency, and the months to recover. 
So where are we at right now? Well, we have a 10% to 20% decline, right? Because we just went through that 10% threshold. These happen every 1.8 years, and if we call it the 5% to 10%, which we could also be in that bucket right now, they happen every 10 months. But check this out. Regardless, 3 to 6 months is going to be your average time of recovery. So that could be as early as the summer or in Q4 of this year. I know that sounds like a long time, but that’s what the historical averages tend to shake out. I think we’re going to be higher before Q4 for sure, and I think there are signs pointing to the market already starting to show signs of healthy support. But a major theme of Lucas’, and part of his thesis for why stocks should rebound, is the presence of forced selling in the markets. More on this here… The Wall Street Journal put out an article talking about some of these pod hedge funds where they were forced to reduce their positions. What that means is the boss comes over and says, “You have to get out of these positions.” You’re talking about millions of shares that have to be liquidated within a day, and that’s what’s happening when you see all these stocks go down in unison. But listen, it is momentary. These types of sell-offs, they don’t last forever. We’re not going into some economic doom. […] I want to highlight this because as the market continues to fall and our older positions have been falling under stress, a great way to play offense is to look for great setups as we head lower. Because listen, you don’t want to be selling as we get closer to oversold. That is a recipe for disaster. You want to be in rocket mode, ready to feel the lift-off when it does come – and rest assured, it will come. Lucas’ model portfolio in Alpha Signals is chock full of high-quality stocks that have been recovering quickly after the selloff. Some are still within buy range. And when the market recovers – as both Lucas and the rest of the crew at TradeSmith overwhelmingly expect – his readers will be ready to make the most of it. Jeff Clark: A Bull Signal from a Risk-On Market Longtime readers of Jeff Clark know that he’s a master of market relationships. When things look bad in one area of the market, he’s quick to show other areas where conditions are holding firm… and signaling that broader selling may be overdone. We can find just one example of this in a recent update to his Market Minute subscribers: High-yield corporate bonds are a leading indicator for the stock market. When “junk” bonds are rallying, it’s a risk-on environment. That tends to be bullish for stock prices. When high-yield bonds are falling, investors are in risk-off mode. That’s bearish. So, it’s useful to note that while the S&P 500 recently traded down 10% from its high – putting it in “correction” mode – the iShares iBoxx High Yield Corporate Bond ETF (HYG) has recovered to within spitting distance of its all-time high. Take a look at this chart… 
There isn’t anything bearish on this chart. HYG is trading above all of its various moving average lines. And, the moving averages are in a bullish configuration – with the 9- and 20-day EMAs above the 50-day MA. If the broad stock market was setting up for a crash, then the chart of HYG would be leading the way lower. But, that’s not happening… yet. But you should understand, this is a pretty long-term take for Jeff. Most investors deal with months and weeks, and most traders in days, but Jeff typically operates in the realm of hours and minutes. Take this, for example – his Delta Direct morning blog post from Tuesday, March 25: It’s not often we see the S&P 500 rally 100 points in a day. But, that is what can happen when conditions get as oversold as they were last week. The problem now is the market used up a lot of fuel to power yesterday’s move. While I still think there’s a chance for the S&P to get back up to its 50-day MA near 5945-ish, anything more than that is wishful thinking. That means… this bounce will likely form a “lower high” on the daily chart, and if we roll over from there, then the S&P will likely take out the recent 5500 low in the weeks ahead. Let’s stay aware of that potential for the intermediate term. In the short term, the bulls have the ball. S&P 500 futures are up five points this morning. The bulls will try to tack on to yesterday’s gains. But, the push higher in the final hour yesterday did create negative divergence on the 15-minute charts of the major indexes. So, I expect whatever gains we see on the opening bell will reverse and we’ll finish the session lower. That sort of action would actually help build up some fuel for a continued rally into the end of the quarter. And, I’ll be willing to buy into a pullback towards the 5700 level – in anticipation for a bounce up towards 5945. On the other hand, if we just power higher from here then I’ll be looking for short-selling setups as soon as we get into overbought territory. Later that same day, Jeff recommended what he called an “aggressive” short trade not on the S&P 500, but on another risk-on sector that’s actually been an outperformer since the 2022 bear market bottom: gold. I’ll leave the details for Jeff Clark Trader subscribers. But what I can say is that with the trade Jeff constructed, a certain area of the gold market only needs to fall about 5-10% anytime over the next few weeks to rake in a tidy 100% profit. That’s the kind of quick-hit, lower-risk trading you can expect as one of Jeff’s subscribers or a TradeSmith Platinum Partner. Andy and Landon Swan: The Final Earnings Scorecard of Q4 2024 One of the most valuable pieces of research Andy and Landon Swan put out is the Earnings Scorecard. This weekly report shows the top earnings trading opportunities as determined by each stock’s fundamentals, earnings track record, and most importantly by the Swans’ LikeFolio analytics engine. You see, Andy and Landon Swan don’t rely solely on traditional data sources to fuel their strategy. They’re pioneers in the realm of consumer sentiment data, crawling through social media and other web metrics to check against investor expectations and lead them to otherwise unseen opportunities. Here’s a snippet from their most recent weekly Earnings Season Pass, highlighting Lululemon (LULU) out of five other tracked stocks: 
And here’s what Andy and Landon had to say about LULU in their options trade recommendation: LULU has been riding the tailwinds of the luxury retail trend and surged nearly 20% on its last earnings report after raising its full-year sales and earnings guidance. The stock has pulled back nicely since then, setting LULU up for another move higher on a positive report. Despite recent warnings of a cautious consumer, high-end spending has proven resilient, and LULU’s affluent customer base is driving interest in its spring lineup – searches for Lululemon are up 17% over the last month: 
Source: Google Trends New product showcases are receiving positive reviews as LULU shifts to core athletic styles and diversifies its fabrics. Andy and Landon recommended what they call a Coin Flip Bullish options trade, which involves trading two different options simultaneously in order to limit your downside at the expense of some upside. I’ll leave the details of that trade for subscribers. Though I’d recommend you watch LULU’s earnings report tomorrow morning to see how their thesis plays out. Speaking of subscribers - I was floored by the number of TradeSmith customers that wrote in to share moving stories about the impact that our tools and services have had on their financial lives. From Barbara helping two of her children with down payments on their homes… To Yvon earning what he considers a $250,000 annual “salary” from trading options with the help of Options360… I’m in awe of how ordinary folks are using TradeSmith to reach – and often exceed – their financial goals. And while we can’t guarantee that each subscriber will have the same results, I couldn’t be prouder that this is the impact we’ve been able to have over the past 20 years. I made sure they put up a replay of my Big Reveal right away: my favorite event we’ve ever put on. Make sure you watch now to see what coming next week. All the best, 
Keith Kaplan
CEO, TradeSmith P.S. I recently started posting on X, @KeithTradeSmith, and I’d love for you to follow along and join the conversation. I’ll be sharing some stock ideas, new screens and strategies we’re testing out, and some of my own principles for investing that I’ve developed over the years. It’s completely free for you to access and always will be! Look forward to seeing you there. | 
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