This Chart Says: Game Over

Briton Ryle

Written By Briton Ryle

Posted July 16, 2024

I use a nifty AI program to forecast market direction and also individual stocks to target for trading. This program offers probability scores for rallies and sell-offs. It also calculates expected gains for any stock, over any time frame. 

Over the last month, I’ve used this “Trading Agent” program to nail down a 72% winner on Amazon, a 98% winner on Apple, a 36% winner on Micron, a 46% winner on Rivian, and a crushing 359% winner on AMD. 

I’m going to take you through a couple of these trade setups, to show you how accurate it is, and what a powerful tool this AI Trading Agent can be for your bottom.

But more importantly, I’m going to give you a little sneak peek preview at what the Trading Agent is predicting for the market in general…

Because what’s about to happen in the stock market is going to take a lot of traders and investors by surprise. And it’s this next major move for stocks that could also take a lot of money away from investors who are on the wrong side. 

This is what we do at Outsider Club. We’re always looking ahead and helping our readers get an early jump on what’s coming down the pike. We may not always get it 100% right but:

 

 

 

 

 

I could go on, but you get the point. 

The Easy Secret to Winning Trades

Back in late May/early June, investors and traders alike were a little nervous. The most recent inflation had come in worse than expected and Fed Chair Powell was pushing back on the idea that the Fed should be cutting interest rates. The markets sold off steadily during the last week of May. It looked like the selling would continue and the rally was in trouble…

But I knew something most investors didn’t…

SPX June

My Trading Agent said that the S&P 500 would rally from early June to mid-July. Note the 100% Reliability Score I circled…

Knowing this rally was coming made the next part easy. Which stocks would benefit the most from a surprise rally?

Well, there was Amazon:

AMZN June

That was worth 72%…

Then there was Apple a couple of weeks later: 

AAPL June

Apple also had a 100% reliability, which makes it pretty easy to be confident in an upside trade. This one was worth 98% in about a week.

Next up was the big one, AMD:

AMD June

Yeah, the 77.78% reliability score isn’t as good, but look at that expected gain – 14.61%! Catch this one, and it should be a huge winner. It was – 359% using call options to max it out!

It was more of the same for Micron and Rivian. But I’m going to skip the details on those two winning trades because what really matters for us today is what’s dead ahead…

Game Over, Man!

If it feels to you like the S&P 500 rallies every single day, well, you’re not wrong. The index has been higher 11 of the last 12 days. It’s been the kind of run that tricks people into thinking it will never end. 

After all, the AI story is getting stronger… inflation data has been so weak that the Fed has a clear path to cut interest rates as many as three times this year… earnings are already coming in great… and the race for who will be the next president seems all but over (and the market likes that kind of certainty). 

I expect it’s tempting for investors to stay the course and continue to plow money into the stock market. My trading agent says that would be a mistake.

Here’s the picture from today through October 1:


SPX today

As you can clearly see, there may be a few more days of upside. But that’s it. After that the S&P 500 will be flat to lower for the next two months. 

And in fact, if I ask the Trading Agent for the outlook from the peak, there is a 70% chance of a sell-off: 

SPX Peak

That forecast peak is July 29 – 9 trading days away. But I’ll tell you something: I’m not the only person with access to this data. And with a major top coming in just a few days, do not be surprised if the big institutions start selling stocks before the forecast date. 

In fact, have you noticed that many of the hottest big tech stocks like Nvidia and AMD are down today and haven’t been close to their all-time highs in weeks? 

Yes, the rally is just about done. 

Now, the thing about this Trading Agent is, it also works in reverse. Yes, it can target stocks that will rally with a high degree of certainty…but it can target stocks that will fall just as reliably.

Christian DeHaemer and I pride ourselves on helping Outsider Club readers profit from stocks when the time is right. We are also very serious about our responsibility to help you preserve your money when the market gets dicey. 

This is one of those times. 

We will (almost) never advise you to take everything off the table. But lightening up and taking some gains off the table is the right thing to do.

And if you’d like to learn how to use my Trading Agent to make some loot when stocks really start falling, you can find out more HERE.

Godspeed,

Briton Ryle
Chief Investment Strategist
Outsider Club

X/Twitter: https://twitter.com/BritonRyle

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