A Signal for Every Market, Every Trader, Every DayVIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest:
Why our new trading system ignores the news Patterns in the data say these three stocks will pop One last chance to join our Signals by TradeSmith charter offer There’s signal… and there’s noise…The terms come from Claude Shannon, the mathematician who figured out how to send a clear phone call down a crackling wire back in the 1940s. The signal was the voice you wanted to hear. The noise was the static getting in the way. Anyone who’s spent time reading financial research will understand the distinction. Most of it is like the static on the phone. It might be interesting… even entertaining. But it won’t help you make a dime in the markets. Only a tiny fraction helps you figure out where the market is headed. At TradeSmith, we’ve spent the past 21 years isolating market signals from the noise. Not by looking at the news headlines or reading earnings reports like most investors. But by uncovering repeating patterns in data that help us understand what’s coming next. And with the launch of our newest trading service, Signals by TradeSmith, we’ve taken this approach to a new level. Signals doesn’t read a single headline or analyst report. Instead, it uses AI to uncover rare alignments of factors that tend to show up before big moves. It doesn’t predict the future. It uses statistical probabilities to put the edge on your side. To find these setups, our software scans 2,467 stocks every morning, then runs more than 10 million calculations on each one to find the highest-probability trade setups 90 minutes before the market opens. These patterns are difficult to find with the naked eye – so difficult, we were only able to find them ourselves by applying our AI algorithms. Each pattern is backed by up to 10 years of data. You can see what happened each time after a signal occurred in the past – how often it’s worked, how much it’s profited when it does, the risk in each trade, and even an optimized options setup to take advantage. Almost 9,000 people joined our CEO, Keith Kaplan, for the launch event last Wednesday, making it one of the most successful launches in our firm’s 21-year history. The event is definitely worth checking out — especially if you’ve felt rocked by rising volatility this year. There, Keith shows you how we found relationships in the data for thousands of individual stocks – and how some of these patterns show up in bull and bear markets alike. Plus, this is the last day to become a Signals subscriber at our charter offer price. Membership includes the full Signals software platform and alerts system, our new three-stock rotation strategy that outperformed the S&P 500 by 3-to-1 over the last six years, and all the resources you need to get up and running. If you’ve been following along for the past couple weeks and like what you’ve seen, you should go here to get the full story from Keith. And today, let’s look at three recent signals on three very different stocks…
Recommended Link |
|
The headlines are loud right now—oil, volatility, uncertainty. But while attention shifts, something else keeps working quietly in the background. An overlooked investment that’s compounded at an extraordinary rate over time. Most people never even look at it. Learn how it works. |
 |
|
This gas-turbine maker is riding the AI power boom higher…GE Vernova (GEV) spun off from General Electric (GE) in 2024 as a standalone energy company. It builds gas turbines, grid infrastructure, and electrification systems That’s made it a key AI infrastructure play. AI data centers need constant, uninterrupted power at a scale that renewables alone can't reliably deliver. The companies building those datacenters – Microsoft, Google, Amazon, and Meta – are locking in contracts with GE Vernova to make sure their servers never go dark. The fundamental story is strong. But that's not why Signals flagged it. It detected a Sprint signal on this stock – a type of signal that follows price momentum. For investors who like to buy stocks in strong uptrends, Sprint signals are key to follow. In GEV’s case, two factors aligned to trigger this signal. The stock closed above its rising 200-day moving average – a long-term momentum indicator – while trading near its 52-week high. In plain English, the long-term trend is up, and it’s accelerating. In our system, every entry rule has a corresponding exit rule. In this case, you sell after the stock rises 6% or after 21 trading days – whichever comes first. This ensures you don’t stay in a trade too long. And we’ve seen that kind of price move 80.1% of the time when these two conditions have aligned. The average return across all trades – winners and losers – is 4%. The average winning trade gains 6.3%. The average loser loses 5.2%. And the typical hold time is nine calendar days. We can even drill down further before making a trade. Our system also shows that the reward-to-risk ratio on this trade is 4.89-to-1. That means for every dollar of downside risk, the signal has historically delivered nearly $5 of upside. 
That’s what I love so much about using this system. It tunes out everything that doesn’t matter when it comes to making money in stocks… and focuses only on what matters. It allows you to tell the news to take a hike… and let the math, probabilities, and pattern recognition do the heavy lifting. Since we launched Signals last Wednesday, nearly 1,900 new subscribers have joined us. They now have access to signals like this firing across the market every morning before the opening bell. And there’s still time to join them. Just be aware that our charter offers expires tonight. Watch the replay here. This pivot signal has a 93% historical accuracy rate…Another big plus of signals trading is it surfaces opportunities you'd never find on your own. Ferrovial (FER) is a Spanish multinational that builds and operates toll roads, airports, and energy infrastructure across more than 20 countries. It runs major highway systems in Texas… it built a section of the Sydney Metro in Australia… and it recently joined the Nasdaq 100. It's a $40 billion company – but most American investors have never heard of it. Signals flagged FER with a Pivot signal. Unlike the Sprint signal on GEV, which trades momentum, a Pivot signal looks for patterns in stocks that show they’re about to change direction. If you’re more contrarian and like the idea of buying stocks after a dip, this is a strong signal to follow. The entry condition on this one sounds counterintuitive: Ferrovial closed down on 13 of the last 21 trading days. That means the stock has fallen during more than 60% of the time over the past month. Most traders would look at that and walk away. But our Pivot signal shows why that’s a mistake. 
As you can see, this signal on FER has made money 93 out of every 100 times it’s appeared. The average return – counting winners and losers – is 6.1%. And the average loss is just 0.5%. The typical hold time is 27 calendar days. That means this signal has historically delivered a 6.1% average gain in under a month – by buying a stock that looked like it was in trouble. That's the power of a Pivot signal. It's designed to spot the exact moment when persistent selling pressure is about to reverse. A human trader sees a stock that's been falling for weeks and avoids it. The system sees a pattern that has historically preceded a sharp move higher. Volatility is contracting on this key chipmaking stock – and that’s a signal to buy…ASML (ASML) is the only company on the planet that makes the extreme ultraviolet lithography machines used to manufacture the most advanced semiconductors. Without ASML's machines, the chips that power AI don't get made. Period. And we just saw a Volatility Contraction signal fire on this AI supply chain linchpin. The entry rule measures something called the Average True Range (ATR) over the past six trading days. It’s a measure of how much a stock's price swings each day. When the six-day ATR crosses below its nine-day moving average, it means the stock's daily price swings are getting smaller. Volatility is contracting. Think of it like a coiled spring. When a stock's price movements narrow after a period of big swings, the market is consolidating before the next move. And in ASML’s case, that move has usually been to the upside. That’s a great setup for short-term traders who want to take advantage of quick price moves. Check out the full stats for this signal on ASML: 
This signal has been profitable 82% of the time for an average return of 2.8%. The average winner gains 4.9%. The typical hold time is 12 calendar days. And the maximum winning trade gained is 14.5%. Now, 2.8% in 12 days might not sound like much on its own. But with lots of similar short-term trades throughout a year, you'd be looking at a roughly 58% gain across the entire year – more than four times the S&P 500's long-run average. And when the historical accuracy rate is above 80%, you're stacking those gains with high consistency – trade after trade. Congratulations if you’re one of the new Signals charter members. You now have access to the most advanced trading system we’ve built at TradeSmith. And you no longer need to pay attention to the noise in the financial press or on social media. You can just wake up each day and find fresh signals about what’s coming next from decades of past market data. And if you missed Keith’s launch event on Wednesday, you still have plenty of time today to watch the replay and decide if you want to join as a charter member. Here’s the link again to find out more. Watch the replay here. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily |
No comments:
Post a Comment