What to Do When the “Mega Melt-Up” Becomes a Meltdown  | BY KEITH KAPLAN
CEO, TRADESMITH |
I recently discovered something in the TradeSmith Research Lab that blew my mind. See, a couple months back, I had a funny feeling about the market we’re in. We just saw back-to-back returns of more than 20% for the S&P 500 and Nasdaq. This brought us out of the first prolonged bear market in more than 12 years. The world’s biggest tech firms were banking on this recovery due to AI, a breakthrough new technology on par with the internet. It’s never been easier for regular investors to take part in this boom. And now, with interest rates slowly coming down, we have even easier conditions for capital markets. I asked my research team to look back in history and find other times that we saw conditions like this. As it turns out, there haven’t been many. In fact, there’s only been two. We found that that only 1925 and 1996 saw conditions quite like these. And if you know your market history, you know both of these times were incredible times to own stocks. What’s coming could be even bigger. And it will create outsized returns for investors who know how to play it. But like with all melt-ups, this one will have a hidden danger lurking that will devastate folks who aren’t prepared. In fact, it could devastate millions of American retirement accounts by the time this pattern fully plays out. That’s why earlier this week, I hosted an urgent online briefing where I gave everyone watching a blueprint for navigating the melt-up… and the meltdown that will inevitably follow. I’ll give you more details about what I covered in a moment… and tell you why it’s critical to watch the whole thing. First, it’s important you know why I’m so confident about the ability of TradeSmith to alert me to what’s coming. | Recommended Link | | | | One man is saying: FORGET most stocks. Because his strategy ignores 99% of stocks out there… And focuses on one — just one — to deliver gains of 85% in 14 days, 120% in under 3 months, and even 222% in just 8 days. In this video, he’ll tell you the name and ticker symbol, completely FREE. Click here to watch right now. |  | | “I Sold Almost All My Stocks on Friday” It was one of the most difficult moments of my professional life… But it saved my portfolio. This was in February 2020, just before the COVID-19 pandemic hit. I had flown to Florida to meet with a group of 50 of my colleagues in the newsletter industry. We were there to pitch our best and biggest investment ideas. One after another, they gave their pitches – each about a different sector or theme they believed would soar. When it was my turn, I stood up and told them, “I sold almost all my stocks on Friday.” As you might imagine, that didn’t make me the most popular person in the room. I urged my colleagues to protect their portfolios. I also urged them to warn their subscribers that a devastating bear market is on its way – fast. I even showed them proof of how I knew we were headed toward the fastest bear market in history – one that would catch everyone by surprise and destroy years of wealth building. I showed them the alerts I received from the TradeSmith portfolio protection system. And I showed them how accurate these alerts had been over the past 20 years. They laughed at me and told me not to panic. Not a single person in the room wanted to hear what I had to say. And I understand why. At the time, the CNN Fear and Greed Index was nearing extreme greed levels. Why would they want to hear a bearish alarm? Then the pandemic struck… All hell broke loose… And the S&P 500 plunged as much as 34% in just over a month. But folks who acted on my system’s advice saved their portfolio… and then made outsized returns after it signaled it was time to get back into stocks again. The Alert That Saved My Portfolio I remember it like it was yesterday. On a Friday, Feb. 27, 2020 – about a week after the S&P 500 peaked – I got this bearish alert from the TradeSmith system. 
Those are some of the biggest stock market indexes in the world. And they had ALL tripped a bearish signal on the same day. At the time, I knew almost nothing about COVID-19. I didn’t know how markets would react to what was coming. But I trusted our system. So, the next day, I sold nearly all my stocks. Over the weekend, a quick stop into Target with my family gave us an early glimpse into the world of panic buying and hoarding we can all remember. We noticed a woman with a cart full of Clorox wipes. Clearly, there was panic in the air, and we were just starting to see and feel it for the first time. But I knew I didn’t have to panic about my portfolio. The TradeSmith alerts are based on proprietary algorithms my team and I created years ago and have routinely tested and updated since then. And they’re eerily accurate. Here are the five most recent plunges for the stock market after a bearish alert like the one I got in 2020… 
And as I mentioned, TradeSmith doesn’t just tell you when to get out of stocks. It also tells you when to get back in. Why I Started Gobbling Up Stocks in March 2020 In 2020, my portfolio was saved a huge loss thanks to the indicators I got. And, just a month later, I got this bullish alert from TradeSmith. 
By this time, COVID-19 was all over the news. And the CNN Fear and Greed Index had plummeted to extreme fear. But again, I trusted the math and these signals. As you can see below, it’s been right nearly all of the time going back over 40 years of use and testing. 
So, I started gobbling up stocks that had experienced big pullbacks and were noted “healthy” in our system by their green designation. And boy, was that the right decision… From the buy alert I received on March 27, 2020, to the next sell on May 19, 2022, the S&P 500 rallied nearly 60%. And if the TradeSmith “mega melt-up” signal we received recently is correct, that’s a small change compared to the gains on their way now. Emergency Meeting Unless you’ve been living under a rock, you’ll know that AI stocks have been soaring… But you may not have tuned into some of the crazy gains we’ve been seeing… - Rigetti Computing (RGTI) – a computing company that could play a role in the next iteration of AI – climbed 1,347% in a recent six-month span
- AppLovin (APP) – a software firm that leverages AI – climbed 929% over a recent 12-month span
- BigBear.ai (BBAI) – an AI data analytics firm – recently soared 473% in just six months
- Palantir Technologies (PLTR) – an AI-powered defense contractor – soared 379% in an eight-month span
- Cerence (CRNC) – an automotive AI firm – soared 326% during a four-month span
- Palladyne AI (PDYN) – an AI robotics firm – climbed 598% in a recent six-month span
And these are just a few examples of the massive gains we’ve seen so far. So, it’s not surprising that the term “melt-up” has started to appear in the headlines… and in Wall Street analysts’ reports. And that’s not only an opportunity. It’s also a worry. Because – by definition – all melt-ups lead to meltdowns. So, I called an emergency meeting with my top data scientist, Michael Carr. Our goal was to determine if we were heading into a true market melt-up in 2025… and show our subscribers what to do about it. I don’t have time to dive into all the details here. But we’ve created a new kind of trading algorithm that can identify technical melt-ups for the first time. We’ve also developed a strategy that isolates deep sell-offs in quality stocks and then shows you when to buy those stocks to profit from the rebound. It boasts a near 80% win rate and an average return, counting wins and losses, of just under 16%. All of this was part of my briefing on Thursday at 8 p.m. ET. (You can watch the replay of that free broadcast here.) I’ll show you how I uncovered the mega melt-up signal… how you can take advantage of it…. and how you can avoid the meltdown that follows. I’ll also give out the names of 10 stocks poised to thrive in the melt-up, and 10 stocks to steer clear of, as a bonus for watching. This is setting up to be the biggest wealth creation – and wealth destruction – event of our lifetimes. And if you play it right, you could walk away at just the right time… escaping with massive gains before the big crash wipes most investors out. Go here now to watch Thursday’s briefing and hear which stocks our melt-up strategy says to buy – or sell. All the best, 
Keith Kaplan
CEO, TradeSmith | 
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