Let’s Find the “Bull Market Somewhere” By Michael Salvatore, Editor, TradeSmith Daily In This Digest: “There’s always a bull market somewhere”… This phrase is most often attributed to Jim Cramer, since he ends every episode of Mad Money with those words, but it probably goes back much further than him. That’s because it’s one of those simple, fundamental truths about how markets work. Even if money is going to broadly flow out of most sectors in bad times, it’s still going to seek returns somewhere else. That’s the natural inclination of capital – to seek returns, not to hide from them. We found one bull market on Monday, in the gold sector. And the gold chart still looks great. But let’s say you don’t want to own gold or other metals. You might be a follower of Warren Buffett, so you’d deem it a “barbarous relic” that “just sits there and looks at you” and doesn’t have any business value. So that’s not a bull market you want to be in. Bonds, as we’ve discussed, are highly correlated with stocks right now and not acting like the traditional hideout. So they’re out too. And there’s certainly no bull market in cash. Inflation is, compared to the last 25 years, on the high side and potentially going higher. That puts you back to picking stocks. Granted, that’s a lot more fun in the euphoric boom times. And at first glance it doesn’t seem like there’s a whole lot of great stocks to buy – but there pretty much always are. And now is no exception. I found plenty of them with TradeSmith software. And while some of its top picks are tied to the gold sector, there are just as many that might not be on your radar until you see the list it made me. | Recommended Link | | | | Elon Musk is set to completely take over the AI industry with Optimus… A breakthrough AI-powered robot that Elon Musk himself believes “will be the biggest product ever of any kind”. One well-connected Silicon Valley insider has uncovered a way for anybody to claim a stake in Optimus with as little as $100. All you’ll need is a regular brokerage account. Get all the information here. |  | | Here are stocks that are working right now… I recently got reacquainted with one of our internal TradeSmith screener reports that’s perfect for navigating our current situation. It pulls stocks that have high Fundamental scores as part of Jason Bodner’s Quantum Edge system… and that are also trading at a one-month high. A one-month high is pretty important right now. It means these stocks are trading higher today than pre-Liberation Day. They’re also fundamentally healthy and growing companies, with expanding earnings, revenues, and profit margins. That’s exactly where you want to be at all times – bull market or bear. And once we dig deeper, and find those stocks are at new highs… Well, they could be worth trading, at the very least. They might even be worth owning. Funny thing about the report that really shows what I’m talking about: We also track which of 60 important ETFs are at new one-month highs. Can you guess the only one? It’s the VanEck Gold Miners ETF (GDX). Meanwhile, there are 69 stocks that fit this criteria… And plenty of them are not gold miners. There are winners to be found, if you know how to find them. And here are the top 10 winners from this list, sorted by one-year returns: 
These stocks are not only up over the last month, they’re up a lot over the last year, too – which we can’t say for everything. Nvidia (NVDA), for example, you probably wouldn’t think of as a laggard. But it’s up only 28.73% over the last year. That’s a bit better than half the performance as the #10 stock above, Idaho Strategic Resources (IDR). (Disclosure, I own NVDA at time of writing.) Let’s zoom in on the chart of property and casualty insurance company Palomar Holdings (PLMR). This chart looks completely different from the Mag 7, and many other stocks for that matter. It’s up well over 40% this year, and while the Liberation Day sell-off did catch it in a quick 9.15% drop, investors stepped back in just four days later and are now bidding the stock to new highs: 
Stocks like this are out there. Let’s look at another in Sprouts Farmers Market (SFM). This is unquestionably a growth stock, with a valuation well above the market average. (Its price-to-earnings ratio is 42 vs. ~24 for the S&P 500.) But you can’t deny it – this is a stock in a bull market: 
That chart didn’t react much to Liberation Day. And despite the momentum, it’s not too overbought right now. It’s worth a serious look. Let’s take a look at how many stocks are suffering 52-week lows… Liberation Day was a shock to the market, sending tons of quality companies tumbling… and severely punishing those that were already in downtrends. We can see this devastation in the chart of the New York Stock Exchange New Lows index. The blue line below shows how many stocks on the NYSE are making new 52-week lows. The red line is the S&P 500: 
Liberation Day saw a big spike in the New Lows index, with more than 613 companies marking fresh one-year lows during the worst of the sell-off. Today, the number is back down to 10. This reads encouraging to me. These big expansions in the New Lows list don’t last very long, and tend to coincide with major stock market bottoms… That was certainly the case in 2020 and 2022. Though 2009, we should note, saw multiple major New Lows shocks before the bottom was in. We don’t just have to feel it out. We can backtest this as a trading signal. We can look at instances in the past when more than 10% of stocks in the NYSE were trading at new 52-week lows, and that number proceeded to fall under 4%. This has happened 12 times in the past 10 years, and 9 out of those 12 times stocks were higher 21 trading days later for an average gain of 2.2%. That doesn’t mean the bear market has seen its bottom – the risks still seem tilted to the downside from where I stand. But it does mean that, if this is indeed a bear market bounce, we could see some continued upside momentum in the weeks ahead. We’re AI appliers… At this point, we’re about a year into the big AI infrastructure buildout. With all these semiconductor companies notching record profits, people want to know what we’re going to do with all this AI horsepower. So, the conversation’s been shifting to AI appliers. Understandably so, as investors have lots of opportunity to invest early in companies’ “AI journey” to expand efficiency and productivity. And we at TradeSmith are doing something similar… Only we’re letting you in on those benefits. We just released our newest version of our AI forecasting algorithm, Predictive Alpha. And it’s shown capabilities far beyond even the impressive debut from back in 2023. Our goal was twofold: - To improve the 21-day forecast, making it more accurate and useful than ever before.
- To create an optimal forecast custom-fit to each stock, with each one showing the precise number of days with the highest accuracy. We call it the Prime model.
In other words, this new AI algorithm could tell you exactly which stocks could turn a quick profit over the next month – while also showing you which to avoid. That’s why we’re holding a free demonstration tonight where our CEO, Keith Kaplan, will show you exactly how this tech works… and how it can guide you through today’s market storm. Click here to automatically save your spot for his AI Predictive Power event at 8 p.m. Eastern. Just for signing up, you’ll get five top bearish forecasts – stocks it’s projecting to drop hard in the coming weeks. After all, we can’t know what the market will do next… But we can find stocks that are going into it with a strong likelihood of further downside. Lyft (LYFT) was one recent example – a quick 5% winner where Predictive Alpha gave the bearish signal even before Liberation Day. We’re equally excited to share how Predictive Alpha finds bullish opportunities like its recent 7.7% winner on AAON Inc. (AAON) on April 3… Yes, the day the market took its first downturn following the tariff trauma. RSVP now, and I’ll see you there. To your health and wealth, 
Michael Salvatore
Editor, TradeSmith Daily | 
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