Editor's note: The AI boom has handed investors one of the best wealth-building windows in decades. But according to Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, chasing every AI stock is a recipe for disaster. In this issue – adapted from the free Chaikin PowerFeed daily e-letter – Marc reveals the data-driven system he created to help everyday investors spot real opportunities before Wall Street does.
Folks, it's a great time to be an investor...
Over the past five years, the broad market S&P 500 Index is up 100%. And the tech-heavy Nasdaq 100 Index is up about 120% over the same time frame.
Those are incredible returns. And the AI boom is providing fantastic opportunities for investors like you to grow wealth.
But we need to be careful with this generational opportunity. As we've said many times in my Chaikin PowerFeed e-letter, blindly piling money into every AI-related stock could be a recipe for disaster.
Of course, that raises the question of how to separate the likely winners from the possible losers. After all, no one wants to see their wealth destroyed...
In fact, my wife Sandy had that happen. Amid the financial crisis, she lost 50% of her 401(k) to a bad broker.
I was so frustrated that I decided to do something about it.
You see, I already had years of Wall Street success behind me.
And I knew exactly what the big-name investors looked for when buying stocks.
I wanted to use that knowledge to help "turn the tables" on Wall Street. So I created a tool that does the heavy lifting for "mom and pop" investors.
As you likely know, I'm talking about the Power Gauge. It's the culmination of my life's work.
And today, I'll discuss how it identified setups in two of the market's hottest stocks...
The Power Gauge Brings Wall Street to You
No one wants to miss out on being early to the next big stock...
Just think of tech titan Nvidia (NVDA). It's a market darling... and a poster child for the AI boom.
Of course, you also know that Nvidia's stock has soared as AI has taken off. Shares are up about 315% in the past two years alone.
Of course, it wasn't a straight line up. But over that span, the Power Gauge flashed some important signals...
In total, our system flashed 23 separate "buy" alerts for Nvidia over the past two years.
Folks, the Power Gauge is far from magic. It analyzes 20 unique factors across four different categories. And it gives us an easy-to-understand picture of where a stock will head in the next few months.
You'll notice one of these factors bears my name. The "Chaikin Money Flow" measures what the "smart money" on Wall Street is buying and selling.
These big names move more money every day than we can imagine. So, keep your eyes on the Chaikin Money Flow factor. If the factor is green for a particular stock, you know Wall Street is paying attention to it...
And it can pay off massively to follow those moves. In fact, this strategy has led to some impressive gains for my subscribers...
For example, earlier this year, I told subscribers about a setup in leading data-analytics and AI firm Palantir Technologies (PLTR).
As I explained, the stock had recently pulled back by double digits after a huge run higher. This had triggered an "Oversold Buy" signal. And it came with massive Chaikin Money Flow support.
Here's the exact chart I shared...
As I said at the time...
PLTR shares are about 17% below their recent high. With strong smart-money support, we could easily see the stock trade back up to that high in the next month.
And with continued smart-money support, it could surge even higher.
That's exactly what happened.
In the following weeks, Palantir's stock surged higher. Subscribers who followed my advice booked a 52% gain in less than a month...
Folks, my point is simple...
In any market, you need a proven system to give you an edge in finding opportunities. That's why I created the Power Gauge...
It puts the power of data behind your investment decisions. And it helps us find opportunities in stocks poised for big upside.
I know it has been a volatile year. But don't let the opportunities in the market pass you by. With the help of a powerful system like the Power Gauge, you can pinpoint the best stocks positioned to surge.
Good investing,
Marc Chaikin
Editor's note: Marc Chaikin – who first recommended Nvidia in 2015, ahead of its 32,000% surge – just revealed a shocking twist. Every Nvidia chip needs a "golden sign-off" from one little-known company. And now, this firm's new technology could speed up Nvidia's product pipeline by 8,000%. Marc says it's the single most compelling AI opportunity of the next 12 months... And the time to get in is right now.
Further Reading
All investors know the saying, "buy low, sell high." But that adage misses something important – markets reward momentum. And right now, with stocks hitting new highs and the market flashing a rare bullish signal, this rally still has room to run.
Success in the markets often comes down to discipline. The biggest blowups in history come from too much leverage... and not enough control. But the smartest investors know that keeping your losses small is how you stay around for the next rally.
