Please Tell Me You Listened to Keith

January 24, 2025

Please Tell Me You Listened to Keith

By Michael Salvatore, Editor, TradeSmith Daily

In This Digest:

NFLX screams higher, right on cue…
Big Tech ups the ante with Project Stargate…
Where such a power-hungry project inevitably leads…
How this expert speculator turns small moves into windfall gains…

I hope you bought Netflix (NFLX)…

A couple weeks back, we released the biggest TradeSmith innovation since the founding of TradeStops more than 20 years ago.

That innovation is our Seasonal Edge strategy – a brand-new way to trade the market by buying only the stocks with the best seasonal tendency to move higher at certain times.

Thousands tuned in to our launch presentation. And during that event, our CEO, Keith Kaplan, gave a seasonal recommendation that I’m hoping and praying you didn’t ignore.

That recommendation was for household name entertainment giant Netflix (NFLX). Boy, did it deliver – and quickly, too.

Here’s the seasonality chart of Netflix, with the relevant period highlighted:

Over the last 15 years, NFLX has run higher from Jan. 17 to April 17 14 out of 15 times. Even better, the average return for that span of time is nearly 24%.

NFLX has thus far followed the seasonal trend to a tee. From Jan. 17, shares of NFLX are up 14.4% – propelled higher by a strong earnings report.

This just proves how powerful historical data can be. NFLX has a strong tendency to not just report strong earnings in the first quarter, but for its share price to react accordingly. You can see in this chart just how common it is to see large price moves. And how some past moves were even bigger:

Long story short, listening to Keith’s free recommendation would’ve paid out big-time.

And following our Seasonal Edge strategy promises to do just the same, with performance that doubled the performance of the S&P 500 over a rolling 15-year backtest since 2006.

If you’re one of the many who signed up to Trade Cycles, host to our Seasonal Edge strategy and a whole lot more valuable research, keep tuned to your inbox for guidance on the five other trades Seasonal Edge currently has open.

And if you’re not, we just opened membership back up after closing down our charter offer earlier this month. Details here.

Recommended Link

The #1 Stock for Trump’s Second Term?

Legendary investor Louis Navellier’s stock rating system gave a buy rating to ALL of the top 30 performing stocks in the S&P 500 index of Trump’s first term… ALL of them! His system is now rating these stocks as a “BUY” for Trump’s second term.

Project Stargate sounds like something out of science fiction…

Announced earlier this week, Project Stargate is an initiative out of the new Trump White House to invest $500 billion over the next four years to build out extensive AI infrastructure in the form of “Stargates.”

You can translate “Stargate” to “high-powered datacenter that requires a ton of space, GPUs, energy, and cooling” and get the gist.

In the modern era, $500 billion has started to sound like not a lot of money. But in terms of a government infrastructure initiative, it’s downright massive.

In fact, it’s the biggest project since the Interstate Highway System. The 46,000-plus miles of highway started construction in 1956, and were finally completed in 1992. That was projected to cost $114 billion, or well over $600 billion in 2023 dollars.

That might be the best way to think about Project Stargate. It’s a digital infrastructure buildout for AI that’s on par with the most important continental highway in the world.

Only this time, it’s not just the government footing the bill. The likes of Nvidia, SoftBank, Oracle, MGX, Arm, Microsoft, and naturally OpenAI are all involved.

SoftBank has committed to kicking off the effort with $100 billion to build a new datacenter in Texas.

And at first glance, the market’s loudest response after that announcement Tuesday was to bid up the stock of technology companies like NVDA, which ran more than 4% higher on the day. (Disclosure, I own NVDA and MSFT at time of writing.)

One less obvious but still key play ran even higher…

Nuclear energy stocks.

From Tuesday’s big announcement, the Global X Uranium ETF (URA) has outpaced gains in Nvidia, Microsoft, and the tech and large-cap markets broadly. Oracle (ORCL) was the biggest price beneficiary, with a 13.1% gain:

If you’re surprised by the move in nuclear, you may not be a longtime reader. Exactly one year ago, on Jan. 24, 2024, we told you that nuclear energy is the key energy solution to the AI revolution that nobody is talking about.

That’s not to say it’s been smooth sailing. URA is roughly flat over the past year, even with standout companies like Cameco (CCJ) up 20% and Constellation Energy (CEG) up over 192%.

To be clear, this is a long-run trend. The U.S. is very much behind on nuclear energy, and will be for at least the next several years even if there’s a large degree of support from the new administration. But as we demonstrated a year ago, no other clean energy is suited for the task of powering AI.

Natural gas and coal will likely be the main drivers in the short term, but any continued drive toward nuclear, as President Donald Trump himself and incoming Treasury Secretary Scott Bessent have supported, will be great for holders of nuclear energy stocks. Stay long and strong on this one, and thank yourself as we approach the 2030s.

One master trader has a sharp take on the new Trump admin…

A funny thing happened since Election Day.

On news that Trump would be president yet again, stocks took off.

Then they chopped around a bit… and started to fall as we got closer to Inauguration Day.

As we headed into the inauguration, the S&P 500 was roughly where it was before the next president was decided.

Have you ever heard the idea that markets are “efficient”? That they constantly update prices based on new information?

There was scant new information between Election Day and Inauguration Day about what the new administration could entail. What we have today is largely what we expected.

That’s because information doesn’t drive markets. Traders’ emotions do. And nobody understands traders’ emotions like 40-year trading legend Jeff Clark.

I’ll let you hear it straight from Jeff. Here’s what he wrote to subscribers of his Market Minute newsletter on Wednesday:

We’ve never had a president who was more adept at evoking emotions than the one who took the oath on Monday. Love him or hate him, President Donald Trump stirs up emotions. Those emotions work their way into stock prices and create the sort of volatility that traders can take advantage of.

The S&P 500 had a dramatic 300-point rally following the election results. The index then had a dramatic 300-point decline – leaving buy-and-hold investors in the same spot.

But traders had a chance to profit.

And that is the sort of environment we’re likely to see at least for the next 100 days, and possibly for the next four years.

It will be a frustrating environment for investors. But it will present a fantastic opportunity for traders.

We’re likely to see extreme levels of volatility in almost every sector and asset class. Just since the election, we’ve already seen larger-than-average moves – in both directions – in Treasury bonds, oil, cryptocurrencies, stocks, gold, and commodities.

And it’s just the beginning.

Trump has said he wants to hit the ground running. He wants to make his first 100 days the most proactive of any administration in history. For traders, that means more emotions and volatility… and opportunities to profit.

Jeff doesn’t just work on gut feelings to trade these emotions. He has a proven system for spotting overextensions, both up and down, that have led to tremendous short-term gains for his subscribers.

In 2022, for example, he was able to warn readers that tech stocks were headed for a “sudden and sharp decline” – and provide trades to capitalize on the situation. Same thing in 2008.

To give you an idea of how powerful the strategy can be, it allowed Jeff to deliver 238% gains on Citigroup (C) in two days, 144% gains in six days on Walt Disney (DIS), 186% gains in eight days on the VanEck Gold Miners ETF (GDX), and a 329% gain in 14 days on Beyond (BYON), to name a few over the years.

Jeff’s inviting anyone curious about his methods to check out his newest research right here for free.

Whether you decide to subscribe to his premier trading advisory, Delta Report, or not… The information in this presentation will put you on the path to making Trump’s first 100 days some of the most profitable in your trading career.

To your health and wealth,

Michael Salvatore signature