For more than three decades, Jim Simons blew away the broad market... In 1978, Simons left his job as a math professor at Stony Brook University to enter the world of finance. He set up shop in a nearby strip mall on Long Island.

The Power of Following the Market's Repeating Patterns By Pete Carmasino, chief market strategist, Chaikin Analytics For more than three decades, Jim Simons blew away the broad market... In 1978, Simons left his job as a math professor at Stony Brook University to enter the world of finance. He set up shop in a nearby strip mall on Long Island. Simons did things differently at his company than most financial firms of that era... In short, he treated the markets like a complex math equation that he could solve. While most other traders watched financial-news TV and read analyst reports, Simons hired mathematicians and physicists. His team ultimately became a "quant" powerhouse. These analysts fed massive amounts of data into their computers. And in turn, their computers would uncover tiny patterns that human eyes could never see... If the price of oil typically dropped on Tuesday, what happened to energy stocks on Wednesday? If gold's value went up one week, how did mining companies react the next? Now, to be clear, the patterns didn't always work out. In fact, Simons and his Renaissance Technologies team were only right about 51% of the time. That's barely better than a coin flip. But a few of their patterns worked consistently. And when you're doing thousands of trades like Simons and his team did, any small edge can add up fast in terms of profits... Recommended Links: By Midnight Tonight, Brace for a Wall Street Reckoning Volatility is spiking... uncertainty is rising... and tech is faltering. But is this the death of the bull market? Fifty-year Wall Street veteran Marc Chaikin has accurately called almost every market twist and turn of the past few years – including the 2020 and 2022 crashes. Days ago, he stepped forward again to explain what's happening – and the ONE move you must make to prepare before Friday, October 3. Click here for Marc's new market update. The Best Case for Gold, Ever Gold has hit all-time highs, breaking $3,700 an ounce – but history shows it could be on the verge of its biggest bull run in more than half a century... triggered by a likely major event, eerily similar to what happened in the 1970s. (It's NOT inflation or anything you're likely expecting.) And Stansberry Research Senior Partner Dr. David Eifrig believes you MUST own shares of his No. 1 gold stock. He says it's likely better than any miner, explorer, or exchange-traded fund on Earth. It's the centerpiece of his full plan for this brutal market, with extraordinary upside potential. Click here for full details on this developing gold story. The Importance of a Disciplined Approach Their approach is now known as "rules-based trading." Rules-based trading involves cobbling together a series of criteria to produce a repeatable approach. And one thing made Simons and his team different from every other trader... They learned to never let their emotions get in the way. That didn't happen overnight, though. Like any human, Simons and his team did allow their emotions to interfere at first. And as a result, their returns initially suffered. But over time, Simons and his team learned to trust their system. They would never override the computer. And they wouldn't give in to fear, greed, or any second-guessing. During the 2008 market crash, most hedge funds lost billions of dollars. Their investment managers panicked. They abandoned their strategies and made desperate moves. Not Simons and his team... Renaissance Technologies' computers kept trading based on their models. The benchmark S&P 500 Index fell as much as 37% during the downturn. Meanwhile, Simons' Medallion Fund gained an incredible 82% in that span. That wasn't luck. It happened because of Simons' disciplined, rules-based trading approach. From 1988 to 2021, the Medallion Fund only had one losing year. Even more remarkable, the fund had just 17 losing months in a 13-year span from 1993 to 2005. Before fees, the Medallion Fund returned an average of 66% per year from 1988 to 2021. Most experts consider Warren Buffett as one of the most successful investors ever. And yet, he only averaged 20% annual gains during his decadeslong career. The numbers are almost too good to believe... If you invested $1,000 with Simons in 1988, you would've had more than $42 million by 2021. That's far better than the $40,000 you'd have if you had invested that $1,000 in the S&P 500. Simons proved that finding patterns in the market was possible. He paved the path for folks like me to use rules-based ways to comb through data to find opportunities. And over the years, Simons' story taught me a critical lesson... Don't try to outsmart the market. Instead, just follow the patterns that keep repeating. When Simons died in May 2024 at age 86, it marked the passing of an investing legend. But he left behind an everlasting impression on me – and I'm sure countless others... Trust systems over emotions. And trust data and math over hunches. Investing models or systems and data crunching have fascinated me for years. You could even call my interest "an obsession with market structure." Heck, that's why I joined Chaikin Analytics in the first place... When it comes to system creation, I'd put Marc Chaikin in the same category as Simons. And longtime subscribers know I use the Power Gauge that Marc created in a unique way... The Power Gauge helps me decide "what" I should look at. Like Simons, I don't care why stocks are going up. I just follow the patterns. When the technical signals align with a favorable rating from the Power Gauge, it's time to invest. The "why" will reveal itself later... It could be a new product launch or an earnings surprise. Perhaps it ties into a big-picture trend that no one saw coming. Or maybe a famous investor is quietly accumulating shares. This approach takes massive discipline. Sometimes, I watch a stock for months before the technicals give me the green light. Put simply, I wait for the data to confirm the pattern. And I use the Power Gauge to help me do that. It's not complicated, just disciplined. Good investing, Pete Carmasino   Editor's note: When it comes to a disciplined approach, that's exactly what Pete just did in the latest iteration of his Chaikin Power Portfolio publication... In short, the Power Portfolio leverages sector rotation to find the best areas of the market to target during a particular quarter. And just this week, Pete released his new batch of recommendations. In a special presentation, Pete and our founder Marc Chaikin discuss all the details of this powerful strategy. And they explain how to gain immediate access to the brand-new iteration of the Power Portfolio. Learn more here before the presentation comes offline. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.11% 10 14 6 S&P 500 +0.34% 139 248 113 Nasdaq +0.48% 33 49 18 Small Caps +0.22% 531 1053 329 Bonds -0.09% Health Care +3.09% 16 32 12 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes remain all bullish. *  *  *  * Sector Tracker Sector movement over the last 5 days Health Care +5.19% Information Technology +2.2% Utilities +2.09% Real Estate +1.35% Industrials +1.02% Consumer Discretionary +0.64% Materials -0.34% Consumer Staples -0.34% Financial -0.41% Communication -0.61% Energy -1.11% *  *  *  * Industry Focus Aerospace & Defense Services 19 15 2 Over the past 6 months, the Aerospace & Defense subsector (XAR) has outperformed the S&P 500 by +26.88%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks DCO Ducommun Incorporate AIR AAR Corp. WWD Woodward, Inc. *  *  *  * Top Movers Gainers AES +16.79% BIIB +10.09% TMO +9.42% SMCI +9.28% CRL +8.96% Losers CTVA -9.11% NWS -6.05% NWSA -5.73% HUM -5.15% IPG -5.02% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close Earnings Surprises RPM RPM International Inc. Q1 $1.88 Met estimate NG NovaGold Resources Inc. Q3 $-0.04 Missed by $-0.01 CALM Cal-Maine Foods, Inc. Q1 $4.00 Missed by $-1.35 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at indra21poetra@gmail.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.