Note from Michael Salvatore, Editor, TradeSmith Daily: Markets are closed today for the Thanksgiving holiday. And most traders will sit out tomorrow’s half-session and spend the day shopping instead. Nothing wrong with that… but according to options flow expert Jonathan Rose, there’s a big trade setting up that you should be aware of. And it’s only running through tomorrow’s session. Jonathan recently detailed the trade in his One-Day Winners summit. There he explained how a trade setup tomorrow morning could play out before the session closes… and why a little-understood options trading innovation is key to turning small market moves into big short-term winners. Those quick wins are Jonathan’s bread and butter. But we’ve been serving up some great longer-term ideas in TradeSmith Daily this year. Read on for more… |
Five More Reasons to Be Thankful for TradeSmith Daily By Lucas Downey, Contributing Editor, TradeSmith Daily Thanksgiving is a reminder that we all have things to be thankful for. If you’ve got a healthy family and food on the table, you’re winning in life. And if your portfolio is shining too (as it should be), even better! Last year I cooked up a five-course write-up on why I’m thankful for TradeSmith Daily. It was an opportunity to showcase some of my favorite calls over the year. This year, we’re doing the same. We won’t claim we got everything right in 2023. But I can confidently say that I’m thankful for the research we produced. Here are my favorite write-ups in 2024. Five More Reasons I’m Thankful for TradeSmith Daily Let’s go around the table and kick off my research highlights beginning in February. People who know me best understand my passion for dividend growth stocks. When an outstanding company initiates a dividend, that’s one of the strongest messages from management you’ll find. My first thankful study showed a powerful tendency for big gains after a company initiates a dividend. Two high-quality new dividend initiators, Booking Holdings (BKNG) and Meta Platforms (META), issued their first quarterly dividend in Q1 of 2024. (Disclosure: I own both BKNG and META.) I’ve updated the returns chart, and so far this historical study held true, with META and BKNG gaining 14.5% and 7.8%, respectively, six months later: 
(Disclosure: I own MSFT, HD, WMT, SBUX, MA, COST, NKE, META, and BKNG.) What a way to kick things off! But let’s keep going… My second thankful study revolved around an issue affecting nearly every American: rising health care costs. One way to cure the never-ending health cost spiral is to invest alongside the health insurers themselves. The company profiled as the best way to play this theme is UnitedHealth Group (UNH). From the article, the annual dividend growth rate has easily outpaced the annual total U.S. health expenditures growth rate. Thankfully, since March 28, when we published this article, UNH (black line) has gained 22.5% vs. 15% for the S&P 500 (pink line): 
Now for my third thankful helping… My colleague Michael Salvatore dove into reasons why Tesla (TSLA) shares were a buy. You may not remember, but Tesla shares were down over 40% year-to-date at one point in 2024! The setup we saw from an evidence-rich perspective said it was a screaming buy. By utilizing TradeSmith’s data tools, we saw a massive potential opportunity after Tesla shares traded down a rare seven days consecutively. Here’s the proof point from the piece. Tesla shares average a 31% gain two months after such an event: 
How did it do? Two months after this piece dropped on April 22, TSLA shares rallied 28%… Not bad if you ask me. That’s chump change if you kept holding. From April 22 through today, TSLA has surged an incredible 141%. (Disclosure: I’m long TSLA.) 
Being armed with data can send your portfolio into overdrive! My No. 4 reason to be thankful for TradeSmith Daily is my favorite call of the year that a great equalizer trade was here. You’d have to be a lunatic to even mutter that small caps were a great bet back in the summer. The crowd hated smaller companies and were extremely overweight popular mega-cap tech stocks. But we saw an easy bet. Inflation ground to a halt, paving the way for the Federal Reserve to cut interest rates. I yelled to anyone who would listen to start buying small caps. Since the great rotation on July 11, the Russell 2000 ETF (IWM) has jumped a staggering 18.3% compared to only a 1.3% crawl for the Nasdaq 100 ETF (QQQ): 
The crowd still continues to be stunned by the sheer dominance of small caps. I believe we’re in the early innings of this rebirth. And now for the final study worthy of this year’s table talk. My No. 5 reason to be thankful for TradeSmith Daily is the fact that a record $7 trillion is hiding in money markets. Just two months ago, I wrote how wealthy households shipped over $1 trillion into high-yielding money market funds. With rates on the downswing, those once-juicy yields are melting away. That means money will eventually pivot to income alternatives, including dividend stocks. It’s only a matter of time. This is why I’m still so thankful to own stocks with so much dry powder on the sidelines. I’m looking forward to next year… and you should be too! Looking back, TradeSmith Daily offered plenty of evidence to keep buying great companies even as the mainstream media said to do otherwise. Here’s your call to action this holiday season. If you don’t yet have access to Jason Bodner’s elite stockpicking advisory Quantum Edge Pro, you should consider changing that for 2025. Jason’s system consistently spots the big winners months ahead of the mainstream. One shining example is GPS company Garmin (GRMN), which is up more than 100% since he recommended it in May of last year. More than doubling your money in one year on a mid-cap stock isn’t a common thing. But Jason’s Quantum Edge system spots these opportunities constantly. Like Celestica (CLS), which he recommended in June and is already up more than 50%. These are the under-the-radar stocks you want to own in bull markets. Their superior fundamentals and technical setups beat the market handily. Learn more here. Now secondly, and just as importantly… Send us your feedback on any TradeSmith Daily success stories. We’d love to hear them! Write us at feedback@TradeSmithDaily.com. Enjoy Thanksgiving! Regards, Lucas Downey
Contributing Editor, TradeSmith Daily | 
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