Artificial Intelligence Raises a Real 'Bullish' Flag

Do you want to invest in innovative and disruptive companies? What if you could do that with an exchange-traded fund ("ETF") using artificial intelligence ("AI")? [Chaikin PowerFeed]( Artificial Intelligence Raises a Real 'Bullish' Flag By Pete Carmasino, chief market strategist, Chaikin Analytics Do you want to invest in innovative and disruptive companies? What if you could do that with an exchange-traded fund ("ETF") using artificial intelligence ("AI")? You would probably want to know all about it. I know I sure would. But now, imagine that the language used to describe the investment makes understanding it a little challenging, to say the least. It's full of enough jargon to make your head spin. Would you still be interested? In today's essay, I'll share a real-life investment that fits this scenario. Importantly, you'll see why you want the Power Gauge on your side when fancy buzzwords lead the charge... Recommended Links: [Huge Recession Loophole (See These Charts)]( Amid today's market turmoil, THIS is one of the biggest and most bullish opportunities today: A red-hot sector with almost unlimited pricing power and a history of outperforming in recessions. It's also the sector where our good friend Dr. David Eifrig spent half his professional life. Meaning he's extremely qualified to spot world-class opportunities today. [Take a look at the evidence here](. [Is this 'America's Nightmare Winter'?]( Wealthy 73-year-old U.S. entrepreneur retreats to one of his three European properties to issue serious warning (and four recommendations) for Americans. "It falls on someone like me to warn you clearly. I'm too rich to care about money—and too old to care what anyone thinks." [Click here for details](. I'm talking about the SPDR S&P Kensho New Economies Composite Fund (KOMP). However, parsing through KOMP's purpose can be confusing. Here's what the ETF's website says about the benchmark index it tracks... The [S&P Kensho New Economies Composite] Index is designed to capture companies whose products and services are driving innovation and transforming the global economy through the use of existing and emerging technologies, and rapid developments in robotics, automation, artificial intelligence, connectedness and processing power ("New Economies companies"). That's a lot of jargon! In short, the ETF buys high-tech stocks. So how does it do that? Let's go back to KOMP's website... Kensho identifies companies in its New Economy Subsectors using its propriety Natural Language Processing, which leverages their artificial intelligence capabilities to screen regulatory forms for key words and phrases in the appropriate context relevant to the respective new economy sector to find companies for inclusion. Gee whiz. Is your head spinning yet? The index operators use AI and language-processing software to look for the "disruptive" words that leading-edge companies include on their quarterly and annual filings with the U.S. Securities and Exchange Commission. Now, KOMP isn't a household name. You've probably never heard of it before. And I admit I hadn't noticed it either before the Power Gauge brought it to my attention... But that's exactly why we use the Power Gauge. The Power Gauge helps us uncover hidden, unique, and intriguing opportunities just like this one. It allows us to cut through all the jargon and confusing language. And today, it's "very bullish" on KOMP. First, let's look at the ratio of "bullish" to "bearish" stocks in KOMP. The ETF currently owns shares of roughly 550 companies with Power Gauge rankings. As you can see in the Prognosis section of the ETF's Health Check report below, 30% of these stocks are rated as "bullish" or better today. Take a look... [Chaikin PowerFeed] That's a solid result, given today's tough market environment. So let's keep digging. Next, we'll analyze the ETF's overall chart. Take a look... [Chaikin PowerFeed] I recommend reading the chart from the bottom up, in this order... - Notice that KOMP recently turned "very bullish" based on the bottom green band. - Its relative strength is just starting to improve. That change might seem miniscule. But it's noteworthy considering the ETF underperformed the S&P 500 Index for the past year. - Lastly, notice the strong buildup in the Chaikin Money Flow indicator. That tells us the "smart money" is getting behind this investment. Folks, for the first time in at least a year, KOMP is setting up well on multiple signals. KOMP holds a broad basket of mostly U.S.-based "new economy" stocks. And like other innovation-focused ETFs, it's showing signs of life for the first time in a while. (My colleague Marc Gerstein [detailed this trend change last Wednesday]( That's intriguing. I've added KOMP to my watch list. I'm glad the Power Gauge helped me spot it. And if you're looking for a "new economy" investment, you should consider it as well. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.46% 8 19 3 S&P 500 +0.41% 161 270 64 Nasdaq +0.81% 35 48 17 Small Caps +0.35% 552 992 302 Bonds -0.09% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed. * * * * Top Movers Gainers [rating] EMBC +16.53% [rating] ILMN +8.77% [rating] GILD +5.16% [rating] VRTX +3.74% [rating] TTWO +3.45% Losers [rating] WBD -4.09% [rating] SLB -3.72% [rating] HAL -3.66% [rating] FCX -3.54% [rating] FANG -3.36% * * * * Earnings Report Reporting Today Rating Before Open After Close A HD, WMT JKHY No earnings reporting today. Earnings Surprises [rating] FXLV F45 Training Holdings Inc. Q2 $-0.14 Missed by $-0.20 [rating] SHLS Shoals Technologies Group, Inc. Q2 $0.05 Missed by $-0.02 [rating] ZIP ZipRecruiter, Inc. Q2 $0.25 Beat by $0.04 * * * * Sector Tracker Sector movement over the last 5 days Financial +5.58% Energy +4.74% Materials +4.55% Industrials +4.15% Communication +4.09% Utilities +4.06% Information Technology +3.97% Real Estate +3.88% Discretionary +3.65% Staples +2.23% Health Care +1.92% * * * * Industry Focus Aerospace & Defense Services 15 13 5 Over the past 6 months, the Aerospace & Defense subsector (XAR) has outperformed the S&P 500 by +5.57%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #7 of 21 subsectors. Top Stocks [rating] HII Huntington Ingalls I [rating] VVX V2X, Inc. [rating] MOG.A Moog Inc. * * * * You have received this e-mail as part of your subscription to PowerFeed. 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