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JPMorgan Gains New AI Trading Edge — Here's How to Level the Playing Field Everyone is expecting the Federal Reserve to raise interest rates today. That's essentially a given. But it's what comes next that matters. And some very smart folks are putting artificial intelligence (AI) to work —scrutinizing what the Fed says — to find that moneymaking edge. JPMorgan Chase & Co. (JPM) has created an AI language model called the Hawk-Dove Score to decipher and rate the tone of policy signals. The banking giant found that when the model detected an increase in hawkish tones from Fed speakers between FOMC meetings, the next monetary policy statement was also hawkish, with yields on one-year Treasury bills going up. The takeaway: This AI model can “read” Fed sentiment, analyze it, and start executing trades based on how dovish or hawkish those statements are. And it can do this in mere seconds. But JPMorgan isn't the only company using AI to gain an investing edge. TradeSmith has spent 15 years as a data-driven company at the forefront of investing and AI. That means our advanced trading tools, machine-learning systems, and algorithms did not just pop up overnight. We have a staff of 36 data scientists, software engineers, and investment analysts developing our market algorithms. Our team literally has hundreds of years of collective experience in the fields of software development and data science. And what's even more important is that we designed our services so that anyone can assess an investment at a glance; you don't have to create your own codes or algorithms, or stare at screens all day. Essentially, all you need to do is type in a stock's ticker, and you'll know immediately what to make of an investment opportunity. And I'm excited to share a little bit more about our advancement in AI that soon could become our flagship technology. Ahead of the Fed's decision today, I want to share a few of our tools to show how, no matter what happens, our algorithms are constantly deciphering new information and data to bring you investable opportunities. The four tools listed below are just a sample of what we have to offer, but again, I want to give you a taste of how easy they are to integrate into your decision-making process. Note: The information shared below reflects the most recent data at the time of writing. Some data and figures may have changed since. RECOMMENDED LINK AI is creating a new wealth gap NOW [Here's what you need to do today] Thanks to AI, economists from MIT, Harvard, and Boston College believe that we are about to witness the explosion of the biggest wealth gap we've ever seen before in history. And with what AI can do, who can disagree with them? But fortunately for retirees, there is a way to profit from all of it. Click here Health Indicator and Entry Signals The Health Indicator is designed to give you a quick measure of the current performance trend for a given position. Based on this indicator, you may decide whether to buy (Green Zone), hold (Yellow Zone), or sell (Red Zone) a particular stock. In our Red Light, Green Light series, we share stocks that recently were stopped out or triggered an Entry Signal, giving you a list of companies to consider avoiding or investing in. As an example, we're seeing more gold, silver, and natural resource stocks enter the Green Zone as gold prices have gone up roughly 10% over the last year and have crested the $2,000-an-ounce level. Endeavour Mining (EDVMF), a gold mine operator in West Africa, triggered an Entry Signal on April 25. Through stock buybacks and dividend payouts in 2022, Endeavour has shown it's a company that makes shareholder-friendly moves: EDVMF is up over 18% so far in 2023 and is expected to report earnings on May 4. Money Movers There are a lot of reasons to sell a stock, but there's only one real reason to buy: You think it will go up in price. And our Money Movers tool, which tracks the buying and selling of insider investors, is a great way to gauge the sentiment surrounding a stock. One company it recently highlighted is Bassett Furniture Industries Inc. (BSET), a furniture retailer and manufacturer. Over the last few years, Bassett has faced a backlog of orders and high raw material costs as a result of pandemic-related pressures. The BSET stock price has been beat down over the last year, dropping 15%. But the company said in a March 30 press release that “the turmoil caused by pandemic supply chain upheaval is now behind us.” If money is any indication — and it is — insiders have felt BSET has been a strong buy over the last few years. The early buying activity in the second quarter shows that those statements about leaving pandemic problems in the past aren't just lip service: The statements the company has made, paired with this buying activity, make it a stock worth adding to a watchlist. Volatility Quotient This tool tells you the risk levels associated with any given investment. And when you know your personal risk tolerance, using the VQ can help you feel more comfortable with your investment decisions because you can limit investing in anything that exceeds your tolerance. Let's say you wanted to start investing in AI stocks. Two that our system has flagged as strong investments are Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Each is in our Green Zone, each has a great Business Quality Score, and each is in an uptrend. But using our VQ, we can see which AI stock is a better option for a risk-averse investor. Microsoft is considered a medium-risk investment, with a VQ of 23.23%. (The lower the VQ, the lower the associated risk.) Nvidia is considered a high-risk investment, with a VQ of 42.25%. Again, our tools highlight both companies as strong investments at the moment, but MSFT poses less risk and would be a better fit for a risk-averse investor. Meanwhile, NVDA would be suitable for an investor who is comfortable taking on more risk in pursuit of larger returns. RECOMMENDED LINK My #1 way to make money right now If you're worried about your portfolio... Drop everything and watch this demo immediately. It reveals how just ONE trade could make you $1,000 (or more) every month, even as stocks, cryptocurrencies, and the economy keep crashing. It's my #1 way of making money right now. In fact, it's the ONLY strategy I'm using while the markets remain this crazy. Because no matter what's going on, it consistently pays me, and it has an 89.47% win rate. And in this quick video I'll show you how to get started. Click here now to watch the demo Predictive Alpha Predictive Alpha Prime is the new development I mentioned earlier that soon could become our flagship technology. Powered by our AI and machine-learning program called An-E, it was designed to provide price forecasts for virtually any stock on the S&P 500, as well as many other popular ETFs and funds. One example I want to highlight is Avita Medical Corp. (RCEL), a biotech company with an innovative product that harnesses the regenerative properties of a patient's own skin. You can think of it like “spray-on-skin” for the treatment of burns. On April 28, RCEL closed at $15.52 per share. And as you can see in the image below, An-E found that this was a stock to get bullish on in the weeks ahead: It projected that by May 29, RCEL would trade for $16.34 per share. But it didn't stop there… The beauty of An-E is that it is always learning to provide the most accurate predictions possible. When RCEL closed on May 1 at $15.66 per share, An-E upped its price prediction to $16.55 for May 30. Bottom line: AI is just the latest iteration of the advantage that huge trading firms, investment banks, and hedge funds have always had. All of our tools, especially Predictive Alpha Prime, are designed to correct that power imbalance and empower your personal investing approach. Enjoy your Wednesday, Keith Kaplan CEO, TradeSmith More Investable Information at Your Fingertips TradeSmith's 2023 Guide to Beating Inflation Bitcoin Is Far from Dead (Here's Proof) This Could Be the Amazon of Gene-Editing Stocks Electric Vehicles Passed This 5% Tipping Point – Here Are 2 Investments to Make Customer Support: 866.385.2076 |  support@tradesmith.com Mailbag Questions ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results. TradeSmith P.O. Box 340087 Tampa, FL 33694 Terms of Use Privacy Policy To unsubscribe or change your email preferences, please click here.