Let me start by saying I have very mixed emotions about AI. In this case, however, it made short work of finding a big win. I also want to be clear, there is AI the sector and AI the tool. The term AI can mean so many different things right now it is about like saying something is green. About a million shades to that color. But let’s focus on AI the tool and how it helped spot this payout.

This isn’t about some massive complex algorithm that is doing all kinds of calculations. It is simply using AI as a tool to do the grunt work. (Which I honestly believe is where it will find it’s longevity for the average Joe in day to day life.) Back a couple weeks ago (in this article) I asked the machine “What are the most oversold stocks?” One of the top 5 it returned gave me a trade that is up 156% this morning. But AI doesn’t get the credit for picking which of the 5 to trade and what trade to use on it. The school of hard knocks gets credit for that part of it. Here is the chart this morning.

The list AI returned pointed us in the right direction, then we used MACD to spot a potential bullish crossover in HTZ. From there it was looking at the options to make sure there was enough open interest to get good liquidity and a price that fit the risk for this trade. It wasn’t a layup, that’s for sure. but if you look at that call we mentioned in that article it went from $.28 to over $.60. Finding ways use AI that work for you. Many carpenters use a chisel, but they all use it for different things and often in a slightly different way. For me, a very good friend introduced me to the Dilbert method of Rubber Duck Debugging. (use AI on your own to see what it is). But I have found that to be the most effective use of the latest hula hoop everyone is fascinated with today.

Hope you all got in on that trade and were able to wait it out. I’ll look for another pick on Monday so keep an eye on your inbox.

Keep learning and trade wisely,

John Boyer

Editor

Market Weath Daily