[Power Trends] This Stock Zoomed 23% in a Day â We Got a Signal Five Days Earlier
I donât know if youâve noticed, but weâve seen a bunch of outsized moves in stocks recently. Amazon (AMZN), a $1.4 trillion company, surged 8% last Friday after earnings. Thatâs a $100 billion dollar gain in one day! Arista Networks (ANET), a leader in cloud networking and a stock I recommend in my [Quantum Edge Trader service]( shot up 20% last Tuesday after strong earnings and guidance. And in the other direction, one of the top cybersecurity companies, Fortinet (FTNT), got crushed 25% on lower guidance because of customer deals that got pushed out to future quarter. (I own Fortinet and like the stock a lot for the long term on its strong fundamentals.) And Meta Platforms (META), which some of us still want to call Facebook, jumped 4% on July 27 after earnings. Thatâs not bad for a nearly $1 trillion company, but I admit that it pales compared to its massive move earlier this year. Back on Feb. 2, shares zoomed 23% in a single dayâs trading. I remember it well. Because five days before that, my AI-powered [Quantum Edge trading system]( signaled that a rally was in the offing. The signal was triggered by Big Money buying, which Iâve marked on this META chart below. The orange arrow shows the first signal, and the yellow arrow shows the surge five days later â which also generated its own signal. Just as importantly, notice the light blue shaded area, which is the stockâs price. Hereâs one other point that I want to drive home here... META kept zooming and has more than doubled since that first signal.
MAPsignals.com
The chart is terrific for visualization. But what it doesnât show are the massive amounts of data, computing power, and sophisticated algorithms that get us to this point. This is possible thanks to artificial intelligence â which, as you know, is taking the world by storm right now. At its core, AI leverages advanced computing power to analyze mind-bending amounts of data. The worldâs fastest supercomputer, known as âFrontier,â lives at the Oak Ridge National Laboratory in Tennessee. And it can perform one quintillion calculations each and every second. (Thatâs 1,000,000,000,000,000,000, for you number folks out there.) Even more powerful computers are on the way with quantum computing. I donât have that kind of computing power. But I donât need it. My Quantum Edge computers already process more than one million data points on more than 6,000 stocks every single morning... [And this is a tremendous edge in finding stocks best positioned to move higher](. That kind of analytical firepower wasnât available even just a couple of decades ago. And it reveals that there are fewer of those big-money opportunities than youâd ever think. Iâve mentioned before the epiphany-level research done by Hendrik Bessembinder, an economist and professor at Arizona State University. For the last 100 years, just 4% of stocks delivered 100% of the stock marketâs net gain above U.S. Treasury bonds. Or to put it another way: 96% of all stocks over the last century failed to beat Treasuries. To find those needles in the global stock-market haystack requires screening those millions of data points daily. In fact, it demands that we analyze the right factors, at the right time and in the right way. AI makes that doable. Thanks to artificial intelligence, we can already analyze, sort, and rank more data points, combinations, scenarios, and patterns than any human could in his or her lifetime. And we can do that in seconds. So, letâs open the hood of this powerful [Quantum Edge engine]( and see whatâs underneath. RECOMMENDED LINK [The No. 1 AI-powered stock of the decade](
No, itâs NOT ChatGPT... (Itâs not Microsoft, Google, NVIDIA, or any of the other big players youâve likely heard about either!) Itâs a tiny sub-$5 stock!
[Donât miss this free presentation]( The Data May Not Be Exciting, But the Results Are
As we established, the META chart helps us âseeâ the final product and is great for visualization. But the nuts-and-bolts programming and data arenât nearly as interesting to look at. In fact, the code I wrote to identify this unusual buying is a bunch of 1s and 0s. And the âoutputâ â the daily screens that display the results of algorithmic analysis â are an admittedly pedestrian-looking file of numbers known as a .csv file. But if it helps us make money, who cares what it looks like? More importantly, we get things like that META buy signal showing us that someone out there was loading up on shares â days before CEO Mark Zuckerberg announced a âYear of Efficiencyâ that popped the stock higher. The AI Version of Wall Streetâs Elite
Now, not every stock with Big Money buy signals is a winner. As cool as those are, investing in moneymakers is not that simple. In fact, some stocks with buy signals arenât even great businesses. Surprise, surprise... even Big Money buys junk sometimes. But we donât want the junk. Thatâs why our daily analysis also tells us if a stock being scooped up by Big Money is also a quality business with strong momentum. This is where AI helps us again. In writing the systemâs algorithms, I basically âuploadedâ the minds and methods of the brightest investors out there: the fundamental and technical factors that are most important â because they best predict higher prices. Of the roughly 6,000 stocks our [Quantum Edge system]( analyzes every day, each has about 120 data points... which are boiled down to 29 of the most predictive factors... which are further boiled down to three scores...
- Quantum Score
- Technical Score of 67.7.
- And Fundamental Score of 75.0.
The [Quantum Score]( is the ultimate single number that measures the quality of a stock. Historical data going back to 1990 has shown me that stocks with a Quantum Score of 70 or higher are indeed high quality â and have a much higher likelihood of rising in price than those with lower scores. Those are the stocks with the absolute best fundamentals combined with strong technicals and Big Money inflows. And my historical data shows that those elite stock make money an outstanding 70% of the time. (Our current [Quantum Edge Trader]( stocks are doing even better than that, with 78% of them making money.) Look, like it or loathe it â AI is here to stay. We can cheer it. We can fear it. Or we can use it to our advantage. I vote for the latter, and my guess is you do, too. Talk soon, [Jason Bodner]Jason Bodner
Editor, Jason Bodner's Power Trends [866.385.2076](tel:+866-385-2076) | support@tradesmith.com
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