Welcome to the Breakfast Club, your weekly dose of market insights and trading strategies! Join us live every Monday and Wednesday at 8:30 AM ET on Traders Reserve Live, where our experts break down the latest market movements, share actionable trade ideas, and answer your most pressing questions.
This week on Breakfast Club, we shared the progress we’ve made with the AI2 Index—and why we’re more excited than ever about the opportunities ahead.
Why we built a scoring system
The AI space is noisy. Everyone claims to be “AI-driven,” but not every AI story translates into long-term investment potential. That’s why we built a scoring system for the 150 companies in our index. It evaluates each company on fundamentals, adoption, and the clarity of AI revenue so we can separate future leaders from the hype.
What we score:
AI revenue (direct or indirect)
Enterprise/consumer adoption
Disclosure strength (how clearly AI shows up in earnings calls)
Monetization clarity
EPS & revenue growth, plus earnings transitions
This approach instantly narrowed the field to 30 top-tier companies—the starting point for our AI2 Insider research.
What the early data says
Our latest run covers 150 companies across the AI stack. Most names cluster in the 70–79 “Overweight” range, with a meaningful cohort in the 80+ “Core” bucket—the group we’ll analyze first.
Unsurprisingly, software infrastructure and software applications top the median scores—these are the engines delivering AI to businesses. Semiconductors remain essential, though averages reflect older chip generations being phased out.
Two quick examples bring the scoring logic to life:
- Lifetime Fitness earns inclusion via its AI-driven health platform that supports member retention. It’s indirect AI revenue—but real, and accretive.
- Lemonade (LMND) is an AI-native insurance disruptor. Its business is built on AI, but near-term profitability lags. As earnings transition from negative to positive, its score (and appeal) should rise.
Because this is a dynamic index, companies can move up or down as fundamentals and adoption change—giving us a living tool to guide smarter long-term positioning.
Beyond headlines: what breadth and rotation are signaling
Despite the doom-scroll, market breadth remains constructive. New highs are outpacing new lows across 5-day, 1-month, and 3-month windows. We’re also seeing rotation away from some mega caps toward utilities and industrials, which is pulling on cap-weighted indices even as the underlying breadth holds up.
Six tickers on our watchlist (crossover scan)
We also ran a simple 10/30 SMA crossover scan to surface momentum setups you can adapt to your style (stock, debit spreads, or premium selling). A few that triggered:
- EA (Electronic Arts) — fresh 10/30 cross above the 200-day; recent history shows quick upside bursts after similar flips.
EVRG — trend improving; prior flips led to multi-week pushes.
CNP — bullish follow-through as moving averages turn up.
RTX — consolidation resolves higher with a 10/30 cross.
Note: Liquidity varies across option chains—size positions accordingly.
What’s next
Next week inside AI2 Insider we’ll open the hood on the top 30 Core names and start surfacing investable ideas—those with the clearest AI revenue, strong adoption, and improving profitability trajectories. For Millionaires Trading Club members heading into the October live event, we’ll bring these tools into the tactics sessions so you can adapt as the AI cycle evolves.
The future of AI investing isn’t about hype. It’s about scoring clarity, adoption, and profits—and we’re just getting started.
We’ll be back Monday morning at 8:30 AM EST on “Breakfast Club Live” with more market insights. But don’t wait. Watch the full video now to see the strategy in action.
Ready to see how we apply this knowledge to our trades? Join our trading community and get access to the tools, data, and strategies that are helping us win week after week. Join Traders Reserve today.
