An Ominous Development for Nvidia VIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - Is Google the new AI king?
- The top bullish seasonal trades to make right now
- If there’s no “social heat,” don’t buy
- The best AI plays, according to our Quantum Score
- An opportunity to join our most elite membership tier
Stocks continue to bounce after last week’s volatility barrage… After plunging as much as 3% last week, the S&P 500 is now up three days in a row. The tech-heavy Nasdaq is also up three days straight after losing almost 4%. Much of the more positive tone is down to a stock I put on your radar back in September as the best Magnificent Seven stock to own – Google parent Alphabet (GOOGL). Since then, Google is up 37%… adding roughly $1 trillion in market value. And over the past five trading days, it’s up nearly 12% over versus a loss of nearly 4% for AI chipmaker darling Nvidia (NVDA). We’re not the only ones who see a positive future for Google. So do Warren Buffett’s Berkshire Hathaway investment firm and Stanley Druckenmiller’s Duquesne Family Office. These two heavy hitters have taken large stakes recently. This is a huge shakeup in the AI trade, and it’s critical you understand what’s happening. So for more on why Google is streaking ahead, I highly recommend you catch up on yesterday’s Daily here. (Hint: It looks increasingly likely that Google will steal the AI chipmaking crown from Nvidia.) But today, I want to put an important TradeSmith event on your radar… Next week, we’re offering a rare opportunity for Platinum membership access. And for reasons I’ll show you today, you’ll want to consider taking us up on the offer. Platinum is our most elite membership tier… It gives you access to every software tool and research service at TradeSmith… plus everything we’ll release in the future… and early access to the tools we’re building. That includes every big release you’ve seen us talk about this year – from our Seasonal Edge trading strategy, to our macro-scale Mega Melt Up indicator, our AI Super Portfolio, and our T-Line options pricing tool. And all of it lives on the TradeSmith Finance dashboard – our hub for the best of everything we build. And if you’ve enjoyed the data-driven ideas I share with you here at the Daily… or in a TradeSmith service you subscribe to… I encourage you to take advantage of next week’s opportunity to upgrade to Platinum. But I’m not going to just tell you why a Platinum membership is so valuable. I’m going to show you. Let’s scroll down the TradeSmith Finance dashboard so you can see for yourself what Platinum members get access to… and how it can give you a data-driven edge usually reserved for hedge funds and other Wall Street firms. First up, let’s look at our Seasonality tool… It shows you, at a glance, the historical price action for any of the thousands of assets we track in our database. This helps you isolate the specific times of year – down to the day – when these stocks assets have seen their best and worst performances. Here’s what our Seasonality tool looks like when you access it from your TradeSmith Finance dashboard. 
On the left, you get a quick seasonality readout for any ticker you type in. I’ve typed in Quicklogic (QUIK) because it shows one of the best upcoming bullish seasonality signals. The chip designer has been up 13 of the past 15 years between Dec. 16 and Dec. 31, for an average return of 10.5%. To the right in the image above, you can see the top bullish seasonality patterns. Looking out to January, there are six other seasonal trade setups. All have a track record of rising during their bullish windows for a gain of between about 5% and 10%. Another tool Platinum members have access to is our Social Heat Score… It’s the brainchild of brothers Andy and Landon Swan, who head up our MegaTrends and Earnings Season Pass investment research services. It mixes real-time data from social media posts, web searches, app usage, and online brand mentions to produce a score of 0 to 100 – where 0 means virtually no consumer interest and 100 means a brand is breaking out. Understanding how consumers think about brands, as well as how often they’re shopping with them, can give you an edge you won’t find in balance sheets or price charts. Happy customers usually mean a successful business. And there’s no better way to gauge how happy customers are than tracking what they say and do online. Here’s the Social Heat Score module on the Platinum dashboard: 
On the left side is a stock with a perfect 100 Social Heat Score: Shopify (SHOP). It’s the ecommerce engine behind millions of online stores. And on the right are two more companies with perfect scores: rideshare giant Uber (UBER) and hydrogen-fuel player FuelCell Energy (FCEL). When I’m thinking of buying a stock, I always check the Social Heat Score to see what consumers think about its business or brand. If it gets a high score, it increases my conviction about the stock. If it gets a low score, I’ll likely look elsewhere for a better opportunity. Now, let’s check out our Predictive Alpha module… Predictive Alpha is TradeSmith’s proprietary AI-based trading model. And it’s another key tool our Platinum folks can access. By now, you’re probably used to ChatGPT and other Large Language Models (LLMs) such as Google’s Gemini and Elon Musk’s Grok. They’re trained to spot patterns in billions of written words from books, articles, and websites to understand and generate human-like text. And the results are often jaw-dropping. You can use ChatGPT to write cover letters… summarize books… even ace the bar exam. Predictive Alpha is what you might call a Large Numbers Model. Instead of reading text, it reads the market – scanning 120 million data points to identify prime trading moments. And it learns as it goes… You can use it to forecast stock prices up to 21 trading days out. And our Platinum folks have daily access to the top 10 forecasts in our system. 
I sorted the list above by Historical Target Accuracy. This tells you how often a past forecast has led to the stock hitting its target price within the window. Among this group, Roivant Sciences (ROIV), Viridian Therapeutics (VRDN), and Albemarle (ALB) all have Target Accuracy above 90% and strong expected moves between 4% and 9.6% – all qualities you want to see for a great AI-powered trade. To wrap up, let’s look at some great AI stocks to own… Jason Bodner is our in-house expert on institutional money flows and leads our growth-focused research service, Quantum Edge Pro. After more than a decade executing trades for wealthy investors at Cantor Fitzgerald, he developed a strategy that pinpoints high-growth companies seeing unusually large levels of institutional buying activity. Jason turned this experience into a quantitative stock rating system: the Quantum Score. It ranks stocks on a 0-100 scale based on three Power Factors: - Earnings, revenue, and profit margin growth,
- Technical price momentum, and
- Unusually strong buying volumes – those you tend to see from Wall Street institutions.
In a bull market that’s currently hyperfocused on tech and AI, the Quantum Score is indispensable. It helps you separate the contenders from the pretenders. So it should be the first thing you check before you trade any stock. And using the TradeSmith Finance dashboard, you can rank the top 10 AI stocks based on Quantum Score. These stocks are all involved in the AI trade – whether they’re in software, semiconductors, or robotics. Holding at least some of these stocks is a great way to profit from the AI boom. 
These are just my favorite items from the Platinum dashboard… There are over a dozen more. And more coming all the time as the data evolves. Matter of fact, before the end of the year we’re launching one more brand-new strategy for Trade360 subscribers. As always, it will also go straight to our Platinum members. It’s too early for me to share any specific details on this new strategy. All I’ll say is, if you like following along with me here in TradeSmith Daily… And if you like using TradeSmith’s best tools to their full advantage… You’re going to like what’s coming. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily (Disclosure: Michael Salvatore held shares of GOOGL at time of writing.) | 
Post a Comment
Post a Comment