Investing With IBD Ep. 330 The AI Boom Is Boosting This Sector. Here’s Why It’s Not Getting Enough Investor Attention.
6 snips
Jul 23, 2025 
Jason Shapiro, founder of Crowded Market Report and a contrarian trading expert, dives into the overlooked sectors poised for massive growth due to the AI boom. He explores why many investors are missing out on opportunities beyond big tech, especially within the energy sector. Shapiro analyzes market dynamics, emphasizing trader sentiment and the impact of NASDAQ trends. He also discusses strategic exits and the shift in investment focus from megacap stocks to smaller firms, shedding light on how to navigate this evolving landscape.
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Jason's Contrarian Trading Origin
- Jason Shapiro developed a contrarian trading method by observing his own losing trades and thinking about doing the opposite.
- This evolved into using crowd sentiment to identify market turns by being against the majority.
COT Data Reveals Crowd Behavior
- Commitments of Traders (COT) data show market positions of commercials vs. speculators, which often diverge at market turns.
- Extreme one-sidedness warns of potential big moves when the market reverses as crowded trades unwind.
Use News Failure for Confirmation
- Wait for market confirmation before trading on crowd data because positioning alone isn’t enough.
- A news failure event, where positive news fails to push prices higher, signals a good time to contrarily enter the market.
