[Power Trends] Smart Tech Allows Us to Scout the Entire Market and Make Money Owning âCinderellasâ and Superstars
Things are pretty exciting around here right now. Whatâs the big deal? Well, I live in the Boca Raton area of Florida, about three miles from Florida Atlantic University (FAU). And the FAU Owls are this yearâs March Madness Cinderella story, advancing to the NCAA basketball Final Four. FAU had a great season. But itâs a lesser-known school (and not exactly a b-ball powerhouse), so nobody expected the Owls to make it this far. Before this year, in fact, FAU played in just one NCAA tournament game in its history â a 2002 loss to heavily favored Alabama. This year, the tournament committee seeded the Owls ninth in the East region â not bad, but far from a high-expectation top seed. If FAU pulls off another upset Saturday night, itâll be the first under-eight-seed team to advance to the NCAA championship game. As most of you know, hockey is my passion (Go Rangers!) â and Iâm not really a big sports nut in general. But I still get swept up in the excitement that March Madness produces year after year after year. Improbable comebacks. Off-the-bench heroics. Long-bomb buckets. Back-and-forth scoring. Buzzer-beating final shots. This tournament never disappoints. Thereâs nothing better than an underdog story, though, and this year FAU is the underdog king. Check this out... According to the NCAAâs March Madness Twitter account, 98.7% of people who filled out brackets picked FAU to be gone before the Final Four.
Makes you wonder: Exactly who was in that 1.3% that did pick the Owls? I think it was mainly alums, family members of students or alums, and supporters of the school in general. You know... root-for-the-home-team emotional picks. Iâm sure a few folks â wanting to separate their brackets from everyone elseâs â picked FAU as a one-in-a-million shot... and they sure hit the jackpot when FAU got to the Final Four. But did anyone pick the Owls because they knew the team, had studied the data, and could accurately predict the team would get this far? I doubt it. Itâs an under-the-radar school to begin with. So the basketball program wonât have a big outside following. And then think of the numbers involved ... think about the probabilities ... In all, 68 teams make the tournament... with 15 players on each team. Thatâs 1,020 players to follow... 68 coaches to get to know ... and each of those in multiple situations. In college basketball, thatâs the epitome of a long-shot scenario. But when it comes to stocks, weâre talking about a much-different scenario. Itâs not an improbable outcome at all. You can sift through those 1,020 players â and pick the 15 best to play for you. And that would give you the best shot of winning it all. Stacking Our Roster
The stock market is a lot like a sports league, and [my stock-picking system]( is based on that super-simple concept â âown the best.â Each team (investor) has a full roster of players (stocks), and those players run the gamut in terms of skills and performance. Youâve got the backups, the role players, and the starters who make up most of the roster. But we want a team full of superstars. Weâre talking about legendary players like Ted Williams, Cal Ripken Jr., Tom Brady, Wayne Gretzky, LeBron James, Michael Jordan, or Joe Montana. These are players who produce eye-popping numbers and, in some cases, change the game altogether. If youâre the general manager of a sports team, youâd want to load your team with those super performers, right? Well, as investors, we want to load our portfolio with [super-performing stocks](. And hereâs where we have an advantage. When you run a sports team, youâre limited by ârightsâ â each player can only be on one team at a time. But when you run a portfolio, you can stack it with all hall-of-famers... no matter who else owns them. âSuperstarâ companies have better business models, better products, and stronger brands than their rivals. They grow their sales faster, have bigger profit margins, bring more money to the bottom line, and have stronger balance sheets than the companies they compete against. And that means their stocks are something special, too. To identify them, we have to follow more than 10,000 publicly traded stocks. Thatâs impossible for a human to do â even an entire team of humans â but itâs not impossible when you utilize [smart technology](. Following Every âPlayerâ to Find the Best
Thatâs why I built my [Quantum Edge system]( to sift through all of those stocks, eliminate the illiquid and riskiest of the bunch, and then âscoutâ the remaining 6,000 to whittle our team down to the best of the best â the stocks with the strongest fundamentals, technicals, and Big Money inflows. These are the qualities our three decades of data clearly show are most predictive of making money, stock after stock after stock. Our Quantum Edge computers go through more than a million data points every night. So with 32 years of data and 252 trading days each year, weâre looking at nearly eight billion data points analyzed by artificial-intelligence-driven algorithms, narrowing the field to our own âFinal Fewâ of elite stocks. Sometimes these are the âfavoritesâ â well-known stocks that everybody seems to own â and sometimes they are the Cinderellas. It doesnât matter, as long as they make you money. There have been plenty companies with high Quantum Scores in my system that I am not familiar with. I have to find out more about them. And thatâs [the beauty of computing power](. I never would have found these âCinderellasâ without it. I remember well back in April 2017 when my smart-tech system, after analyzing more than one million data points for 29 different technical and fundamental variables, gave SolarEdge (SEDG) a Quantum Score of 75.86.
Iâd never even heard of SolarEdge, so I dug in and researched it, saw why it rated so highly, and fully grasped the potential it offered. Then I made one of the boldest moves of my career: I (literally) pounded the table on the stock in a room full of wealthy investors at a conference in Palm Beach, Florida. Those who listened cashed in â big â because SolarEdge soared 2,200% after my public pronouncement.
Not every stock rockets that much, of course. Just as weâve seen with âdream teams,â unforeseen factors can trigger a loss. But play that game over and over and you could end up winning about 70% of the time. Thatâs the success rate of my system with all those data points in it. Iâm rooting for Florida Atlantic as a local and as someone who would love to see a dark horse hoist the national championship trophy. I honestly donât know if the Owls can keep the magic to that final buzzer, but Iâll be watching nevertheless. I know this is pure emotion â the opposite of how my [Quantum Edge system]( operates. With stocks, I donât let emotion get in the way. I rely instead on hard data and proven algorithmic analysis â and the smart technology that can tell us which U.S. stocks can make us champs. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodnerâs Power Trends [866.385.2076](tel:+866-385-2076) | support@tradesmith.com
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