Tom Yeung here with your Sunday Digest. 

At around 4 p.m. Eastern time on Friday, October 10, a Bitcoin whale on crypto platform Hyperliquid began placing massive, leveraged short bets. The mystery trader spent $80 million on a Bitcoin short and $30 million for an Ethereum short, wagering that both coins would go down. The final trade was completed at 4:29 p.m. 

One minute later, at 4:30 p.m., the two cryptocurrencies crashed after President Donald Trump announced a 100% additional tariff on Chinese imports. Bitcoin sank 7%, while Ethereum plummeted 10%, generating over $150 million in profits for the whale’s leveraged positions. 

Now, perhaps this was luck. Traders routinely bet against crypto prices, and the whale could have been at the right place at precisely the right time. Put enough monkeys in front of typewriters, and one will eventually write out Shakespeare’s Hamlet by pure chance. 

Or maybe there was something more. Over the following days, crypto enthusiasts began crying foul after online sleuths linked the mystery wallet to Garret Jin. Mr. Jin was the former CEO of BitForex, a crypto exchange that shut down in 2024 after a fraud scandal. Suspicions of insider dealing were amplified after Binance co-founder Changpeng Zhao shared an investigative post. 

So, was the $150 million profit legal? 

Maybe. 

Or maybe not. 

We’ll probably never know. 

However, you can be certain that every new trade by this wallet will have crypto traders placing their own bets. If that whale was suspiciously correct once, what’s stopping it from being suspiciously correct again?  

The Stock Market Equivalent 

Interestingly, many short-term stock-trading strategies work in a similar way. Some stock traders are naturally more knowledgeable than others, so following their moves can produce some stunning (and legal) results. 

• Insider trading. Corporate executives are largely allowed to buy shares of their own companies. They clearly know more than the public, and studies have shown that copying CEO and CFO trades through publicly available disclosures can help investors outearn the markets by over 20% annually. After all, a biotech CEO would be the first to know if half of their participants in a double-blind clinical trial are suddenly getting cured. 
• Institutional trading. Copying the actions of institutional traders can also lead to phenomenal gains. These large traders often buy billions of dollars in shares, creating upward buying pressures that other traders can exploit. Many call this a “follow the money” strategy. 
• Guru trading. Major investors like Warren Buffett and JPMorgan Chase & Co. (JPM) CEO Jamie Dimon can create expectations of more buying to come. Berkshire Hathaway Inc.’s (BRK.A) recent $10 billion purchase of Occidental Petroleum Corp.’s (OXY) chemical division has pushed prices of similar firms higher.  

That’s why I was so excited to introduce TradeSmith CEO Keith Kaplan’s AI Super Portfolio last week. His AI-powered system has been trained to identify the faintest of market signals and pinpoint exactly when investors should buy a particular stock. With it, according to back-tests, you could’ve booked a 502% gain last year alone. 

This system has become even more crucial with the U.S. government’s entry into markets. These multimillion-dollar deals can send share prices soaring, and Keith’s AI-powered system can help you get in early. 

In fact, three of the stocks the system suggested last week are already up 4% in this mixed market thanks to a double-digit surge in Energy Fuels Inc. (UUUU), a uranium and rare earths miner that recently hosted a congressional visit. 

So, I urge you once again to watch Keith’s latest presentation. In it, he explains how the AI Super Portfolio works 

Until then, I’d like to leave you with three more picks that his AI system is now recommending. 

3 Stocks Keith’s AI Is Flagging Now 

Fluence Energy Inc. (FLNC). The safest of these short-term recommendations is Fluence, a utility-scale battery storage firm I previously recommended in July. And again in September. I called this firm a way to score 1,000% returns without really trying. 

That’s because Fluence is riding a massive wave of AI data center demand. AI training and inferencing often cause sudden power spikes, and lithium-ion batteries are often the only way to satisfy these needs. After all, powering up a gas “peaker” plant can take up to 10 minutes – at which point the power spike might already be over. The stock rose 125% between July and last Monday. 

Then on Wednesday, FLNC surged another 16% after the company signed an agreement with Torch Clean Energy to supply grid balancing in Cochise County, Arizona. That this is happening in a highly Republican region shows how electrical needs have become an issue for both sides of the political spectrum.  

Fortunately, Keith’s system believes there’s still time to ride shares higher. Recent trading suggests shares can surge another 40% to $30.87 over the next 30 days, and asset management firm BlackRock is in advanced talks to buy AES, one of Fluence’s two parent companies. That could make FLNC an attractive takeover target for private equity. Below is a screenshot of what I’m seeing now on TradeSmith’s system. 

Viasat Inc. (VSAT). Governments worldwide are understandably worried about the dominance of Starlink, the satellite-based internet service owned by billionaire Elon Musk. The private firm owns roughly 8,500 of the 11,600 active satellites in Earth’s orbit, and has previously restricted access in Ukraine, South Africa, Gaza, and elsewhere. 

No one likes putting their eggs all in one basket. 

That’s likely why Keith’s system has flagged Viasat, a publicly owned firm that provides a similar service. The company already operates 23 high-capacity satellites in high-earth orbit, serving commercial customers. It also recently inked a deal with Abu Dhabi’s Space42 to develop a low-earth orbit system to compete with Starlink.  

Over the next 30 days, Keith’s system expects an 11.5% return. It has an 84.38% historical accuracy on Viasat predictions – an unusually high figure. 

Now, an investment in Viasat comes with some obvious risks. 

• Debt. Satellites cost a small fortune to build and launch, and Viasat already has trouble covering current interest expenses. Like Starlink, it will need significant external funding to build out its network. 
• Growth. Broadband via high-earth orbit satellites is a slow-growing business because of its high latency. The company relies on low-earth orbit satellites for growth. 
• Deals. There’s no guarantee that the U.S. government will expand its business with Viasat, or funnel its cash from the federal Broadband Equity, Access, and Deployment (BEAD) program. 

However, Viasat’s compelling valuation (below 1X book value) and technical movements (according to TradeSmith’s system) make this a bet too good to ignore. 

AST SpaceMobile Inc. (ASTS). Finally, this week’s riskiest pick is a firm bringing satellite broadband to mobile phones. This early-stage startup has just six satellites in low-earth orbit and only recently completed tests on its system with AT&T Inc. (T). The wide range of potential outcomes is shown by Keith’s system, pictured below. 

Still, AST SpaceMobile remains a company worth watching for its broad ambitions. The company plans to begin offering cell coverage in the U.S. later this year and could have as many as 60 satellites in orbit by the end of 2026. It eventually aims to provide uninterrupted cell and 5G coverage across the globe. 

The company is also popular among retail traders, who historically favor chasing rising stocks. 

And so, even though investors should only buy a limited amount of ASTS themselves, a potential 21% gain over the next 30 days makes this early-stage firm a bet worth watching. 

The Short Cut to Short-Term Gains 

I must note that the AI Super Portfolio is perfectly legal because it follows public information left behind by trading strategies, U.S. Securities and Exchange Commission disclosures, and official financial reports. We’re not in the business of breaking the rules. 

But using this system can almost feel like cheating, especially to longer-term investors like me. We’ve been trained to focus on the long-term fundamentals and let the short-term bumps work themselves out. 

With Keith’s AI Super Portfolio, that no longer needs to be the case. 

That’s because there’s so much information hidden in these short-term bumps. If shares of a company like Energy Fuels suddenly jump 5%, that must mean something… even if we longer-term investors don’t know what. 

Fortunately, artificial intelligence is now advanced enough to detect these patterns and decide how meaningful they are. And Keith’s system has proven itself to be an invaluable partner in timing markets. 

So once again, I urge you to tune into a replay of TradeSmith’s event, where Keith walks through how his system works, and how you can follow the money to what’s historically generated excellent returns.  

It’s almost like Bitcoin whale watching… but better. 

Until next week, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace