Let's Go - I Cracked This Famous AI's Trading Pattern

Dear Reader, 

This week, I've been fascinated by a new... entity... called the ChatGPT Fund. Roughly 14,361 investors have poured money into a fund that will determine whether ChatGPT can pick a better basket of stocks than mere mortal money managers.

It started buying stocks on Monday - and plans to hold them for a two-week period. So far, the 20-stock portfolio has been trending higher. Names like Alphabet Inc. (GOOGL), Broadcom Inc. (AVGO), and others are ripping higher...

The designers set up the fund to have ChatGPT analyze recent media including blog posts, news articles, and more. They then created a sentiment score around its finding.

It then created a portfolio of equal weight around these 20 stocks.

So, is ChatGPT better than humans?

Well... it's complicated, but it did reveal a powerful new trading tool to me. 

Hmm - Something's Off Here

There is something a little odd about the fact that no ticker in the portfolio starts with the letter J on down the alphabet. Now, based on the Semitment Score, this could all be coincidence... but then I noticed something really unique...

The fund has been adding money all week, and it's up to $8.1 million in combined funds. I started to notice that stocks that aren't in the upper tier of the S&P 500 - names like Albemarle Corp. (ALB) are starting to show an interesting buying pattern.

This is a good time for full disclosure: I signed up for the fund and put some money in. So I noticed (via an autopilot app) that my purchases all went through at around 10 AM.

And what I've seen from ALB - a momentum stock - is that selling occurred  in the first half-hour of the day. And then... buying at 10 AM that lead to further gains in the afternoon.

It's not just Albemarle - a good chunk of these stocks are exhibiting this behavior.

So this all begs the question: Is the ChatGPT Fund actually good at picking stocks? Or is it good at attracting the attention of other algorithms which can propel momentum stocks higher?

This is what we're investigating and, if my theory is correct (and I think it is), profiting on, in our trading sessions at Hyper and Flashpoint Trader.

Today's Momentum Reading

WORLD'S BIGGEST INDICATORS

Broad Market: Green

S&P 500: Yellow

Recap: The World's Biggest Indicator (Momentum) is Green

We're in a positive uptrend as investors cheer the possibility of a debt ceiling conclusion. But I urge caution right now. I think this is gearing up to be the ultimate sell-the-news event - complete with a big move from tech-heavy indices over to bonds paying 4.5% to 5%.

Flashpoints I'm Watching

Afterschool Fun: ChatGPT to Spy on Kids

Amazon.com Inc.(AMZN)is testing home-monitoring technology with ChatGPT features. AI features could identify burning stoves... monitor alarms... and tell you if your child had other kids over after school while you weren't home. Here's my question. When AI takes over everyone's jobs (and society), does Amazon really think parents won't be home?  

Is Buffett A Secret CO2 Hound?

Yesterday, I mentioned Warren Buffett bought another $125 million in Occidental Petroleum Corp.(OXY). A colleague replied that Buffett had also dumped a large stake in Chevron Corp.(CVX) during the first quarter.

I must ask: What does Occidental have over Chevron?

Last night, we may have gotten another answer. Chevron announced its Australian flagship carbon capture plant at Barrow Island is operating at one-third capacity. Now, the company is coming hat-in-hand to the Aussie government for financial help. More on this Sunday because I'm still selling OXY put spreads. 

It is literally happening every single day

A couple of weeks ago, I made a prediction about a buyout boom of epic proportions that was brewing in the Permian Basin.

I called it the greatest energy opportunity of the last 17 years.

And I'm being proved right with every passing day as we're witnessing multimillion-dollar deals hitting one after the other - it's the very definition of daily deal flow.

And the sheer scale of all this breathless M&A activity is unlike anything we've seen in oil in decades. The latest deal to land is a $162 million merger involving Northern Oil and Forge Energy.

It's one of seven deals that have hit in the first wave of this enormous buyout boom - and we're just getting started.

But the best part is the five companies I've pegged for acquisitions are still up for grabs...

If any single one of these five firms is acquired you'd remember this investment for the rest of your life.

That's why I've recorded a special presentation outlining why this is the biggest energy opportunity of the last 17 years.

And pay close attention - because I reveal the name and ticker symbol of the company that's my number-one play in the space right now.

The rewards could be off-the-charts.

Cheers,

 

Garrett