{"id":21579,"date":"2024-02-14T07:30:27","date_gmt":"2024-02-14T12:30:27","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21579"},"modified":"2024-02-14T07:30:27","modified_gmt":"2024-02-14T12:30:27","slug":"theres-a-trading-opportunity-in-ai-shaping-up","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/theres-a-trading-opportunity-in-ai-shaping-up\/","title":{"rendered":"There\u2019s a Trading Opportunity in AI Shaping Up"},"content":{"rendered":"

There’s no question that the megatrend in the markets right now is all about AI…<\/p>\n

Right now it seems that AI is everywhere<\/em>.<\/p>\n

Product announcements, earnings calls, conceptual designs… the market just expects them to make use of AI one way or another.<\/p>\n

The AI mania has forced the SEC to focus on what it’s calling “AI washing.” That’s when a company inflates the role that AI plays in its business operations.<\/p>\n

But make no mistake…<\/p>\n

The AI megatrend is the most exciting narrative to grip the market in a very long time.<\/p>\n

But investing in AI is not as easy as some make it out to be. AI is a technologically complex theme.<\/p>\n

Picking the sure winners while avoiding the losers can be tricky.<\/p>\n

A Basket of Stocks<\/h2>\n

This is where an ETF can be very helpful. An ETF holds a basket of different stocks relating to the ETF’s mandate.<\/p>\n

While there are several AI-based ETFs out there, one I have my eye on is ROBO.<\/p>\n

ROBO is an ETF that tracks the Global Robotics and Automation Index. ROBO will benefit greatly as the adoption of AI makes its way through industries like manufacturing and healthcare.<\/p>\n

But simply buying and holding ROBO for the long-term isn’t what I’m interested in.<\/p>\n

That’s because ROBO’s returns have historically been a mixed bag.<\/p>\n

Over the last five years, ROBO’s quarter end returns are 12.14%. But over a three-year period, the returns are actually -1.93%. <\/a> <\/p>\n

This means that we should look to take short- and intermediate-term trades in ROBO instead of just hanging on for the long-term.<\/p>\n

And right now, ROBO’s price chart is showing signs that it’s getting ready for a quick and explosive burst higher.<\/p>\n

Since December 27, ROBO has been trading in a sideways range. This range has now clearly developed into a powerful chart pattern.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

The Triangle <\/h2>\n

This pattern is a triangle. You use two trendlines to outline the contours of the pattern. These trendlines slope towards each other, eventually reaching a point.<\/p>\n

As we get closer to where the two lines will meet, we should see a strong breakout.<\/p>\n

Check out the pattern on the chart below:<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

As you can see, ROBO is currently brushing up against the upper blue trendline. At the same time, prices are very close to the apex of the triangle – where the two trendlines would meet.<\/p>\n

This means the breakout should be happening any day.<\/p>\n

When it does, my expectation is that prices will run up fairly quickly to just around $60.<\/p>\n

Just remember – it’s very important to be patient. The triangle pattern isn’t confirmed until prices break out of the upper trendline.<\/p>\n

But if we do get the breakout, we should be able to capitalize on a nice opportunity.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n","protected":false},"excerpt":{"rendered":"

The megatrend in the markets right now is all about AI.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21579","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21579"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21579\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21579"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21579"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21579"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21579"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}