Act by July 10
Now, Adam, you might think a 100-year-old postage stamp is valuable. But most of them aren’t. This one was different, though. ADAM: How so? KEITH: For a stamp to be considered valuable, 3 factors have to align. First, it has to be scarce... AND, it needs to be in good condition... AND, it needs a unique feature. Line up all 3 factors and the stamp is considered an “anomaly.”
KEITH: Because without an edge – without some kind of anomaly to exploit – you’re on the same playing field as everyone else. In the case of Robinhood... We’re not looking for established patterns, Adam. We’re looking for “Inverted Jennys.” ADAM: What do you mean by that? KEITH: That postage stamp I just mentioned? It aligned all 3 factors... making it a true anomaly. It was scarce... in good condition... and contained a unique feature. The stamp showed an airplane used during World War One, known as the “Jenny.” But it was printed upside-down. This “thumbprint” distinctly pointed to a printing error that occurred in just 100 of those stamps back in 1918. An anomaly so rare, one of these stamps recently sold for $2 million! So, too, a stock’s perfect trade has a specific thumbprint or “anomaly” in price action that we detect through AI and our algorithms... sorting through the noise that distracts everyone else. Robinhood’s anomaly is that every time the stock is considered “oversold”... AND, that condition occurs for 5 days in a row... AND, at least 3 million shares of Apple traded that day... Then the stock is due for a massive jump. Like this 9.2% gain we completely new and even radical way of thinking about the market, I know... But that’s what makes it so lucrative if you have the right computing power, as we do, to identify these anomalies. And as I’ll cover in our big prediction, today’s market has opened ideal conditions for doing this. In our case, Adam... we have a secret. ADAM: Well – that’s certainly no surprise considering the work you and your team have already done at TradeSmith. nailed in 4 days on our beta recommendation in 2026. This way of looking at stocks on a “micro” level where anomalies are the ONLY driving force is a
Most stamps aren’t worth more than face value... because they can’t align all 3 factors.
So, too, most companies aren’t worth more than the value assigned by the market... because they can’t align the unique factors needed to set up a big jump in our AI system. Take Robinhood, for example. The brokerage firm. This company has its own unique characteristics, right? Product offerings... revenue growth... profit margins... and so on. But 99% of the time, there’s nothing out of the ordinary in this data. It’s like every other brokerage firm. ADAM: OK, I follow that... KEITH: And yet... a company like Robinhood will respond to a recession a lot differently than Macy’s, right? That’s because each company reacts to economic news differently. As a result... stocks develop their own unique trading patterns over time. That is, predictable movements in the price action. ADAM: Sure, and that’s how most traders make money, right? For example, if Robinhood plummets during a bear market... but its user growth is strong... then the stock is likely due for a jump. KEITH: Adam, that kind of thinking is why studies have shown only 3% of traders are consistently profitable. You see, most people make the same classic mistake... They trade patterns the market has already discovered. ADAM: Why is that a mistake?
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