July 7th, 2025: AI-Enhanced Trading Boosts Client Gains: 50%+ Returns While Cutting Risk

"Performance is important, but Process is critical." - Mike Turner

AT THE BEGINNING OF THIS WEEK:

This morning, the market (S&P & Nasdaq, also known as our TMI... Total Market Index) down just a bit, following another great week in the market.

As of this writing, here are the net (after fees) of the current trade results of our clients who have been in the trade from the beginning:

• Start Date: April 25, 2025

• Our 1x Client Accounts are up +15.84%

• Our 2x Client Accounts are up +31.91%

• Our 3x Client Accounts are up +50.86%

• The S&P 500 is up +13.60%

The next decision point will be this coming Friday.

R&D Update...

We continue to research ways to improve upside and reduce risk in our R&D activities. The integration of artificial intelligence into our algorithms is proving to be very positive. This research has resulted in the addition of Strategy-level stops rather than one stop being the same across all three Strategies. This has dramatically reduced downside losses in the 2x and 3x Strategies. Thanks to our AI integration, we now have an overbought condition that is designed to lock in profits in big up-runs in the market, which improves net total return substantially.

Lastly (so far), we have confirmed that eliminating all short (inverse) trading dramatically improves net total return and drastically reduces down-side risk.

While we are not ready to lock down all of these improvements in our set of trading rules, we are getting very close to that point. Hopefully, we will be able to lock down several new and much improved trading rules by the end of this week.

THE NOISE:

Alex Goodwin, Vice President

The indexes added to their record highs again during last week’s shortened Independence Day trading week. The S&P 500 and the Nasdaq 100 both closed the month of June with their best quarterly performance in over a year, driven by optimism over easing geopolitical tensions and possible trade deals.

Midweek trading was positive as investors reacted to a new trade deal made with Vietnam that reduced tariffs on Vietnamese exports to 20% and allows the United States free tariff access on all exports to Vietnam. This deal provides a boost for U.S. agricultural, energy, and automotive industries. Markets rallied again after a stronger-than-expected June jobs report. Payrolls rose by 147,000, much higher than the 120,000 number that was expected by experts, and the unemployment rate dropped to 4.1%. Both data points gave investors’ confidence that the Fed may decide to cut rates sooner than expected.

Elon Musk and Tesla stock have continued to make their volatility mark on the indexes. On Monday Tesla fell more than 5% after the Trump/Musk feud was reignited. The following day the stock jumped back up nearly 5% after they reported very successful Q2 delivery numbers, pushing the S&P 500 and Nasdaq 100 higher. And again, on this Monday July 7th, Tesla stock has cratered more than 7% after Musk made the decision to found the “America Party”, in an effort to combat overspending by the Republican and Democrat party. Tesla stock is no stranger to volatility, but it is fair to say the recent weeks have been uncharacteristically volatile.

Markets were closed on July 4 for the holiday, and the weekend was quiet, though investors remained cautious ahead of the July 9 tariff deadline. We are well aware of the impact that tariff news can have on the markets, but we also understand that the market can be reactionary. So, our job for our clients is to make decisions based on what our rules tell us, and not what the headlines tell us, and we are prepared to do so.