Land a punch against the bear market

0

Today is really special day for me. It’s because today is the day that I can unveil Wall Street’s best kept secret – a secret that could help you make a lot of money in a bull or bear market.

Source: GluckaPixels / Shutterstock

The story here is quite simple.

About a year ago my team of Caltech quants and I started to worry a bit about the state of the stock market. We seemed to be running on “borrowed time”, if you will, and a market downturn seemed imminent.

So, at the end of summer 2021, we decided to create an algorithmic trading system designed to win big even in a bear market. Simply put, on the idea that there is always a bull market somewhere (even in larger bear markets), we started building a system specifically designed to find those hidden bull markets in preparation for a bear market. coming.

A year later, that bear market hit with full force. It kicked most investors and crushed most stock portfolios.

But, also a year later, we have ended this bear market crushing trading system.

In other words, our best weapon against this bear market has finally arrived!

And this afternoon, at 4 p.m. Eastern Time, we’ll be unveiling this system for the first time in our must-have Fast Cash Flow Summit.

Be sure to tune in to this event later today. But, for now, I will detail my revolutionary system to fend off the bear market.

Every action follows a pattern

Wall Street’s best kept secret is that each action follows a similar patternand understanding this secret is the key to consistently making big profits in the stock market.

Specifically, each stock goes through four stages:

  • Step 1: Basis. This is when a stock gets stuck in neutral and moves sideways, bounces around a lot but ultimately goes nowhere. It’s basically when an action is neither good nor bad, but just waiting for something good or bad to happen.
  • Step 2: Progress. This is when a stock begins to break out of its base phase and begins to rise significantly. At this point, the stock is usually enjoying a lot of good news and investors are rushing into the stock in spades.
  • Step 3: Garnish. This is when a stock’s uptrend begins to end. The flow of good news begins to subside. Investors who bought in steps 1 and 2 start taking profits off the table. But the stock is not falling yet. Fresh money is still supporting the stock in a consolidation pattern.
  • Stage 4: Decline. This is when the trim pattern breaks and everyone starts selling. The stock begins to drop significantly and rapidly. This is the reverse of step 2.

Eventually, all Stage 4 declining stocks stop falling and enter a Stage 1 base pattern, at which point the cycle begins again. Mousse. Rinse. Repeat.

This may seem like an oversimplification. But believe it or not, every stock actually follows this pattern.

Let me show you an example:

Shopify in its 4 steps

Let’s look at one of the most popular stocks, e-commerce solution provider Shopify (STORE).

Shopify stock has been on Wall Street since 2015. Over those seven years, the stock has predictably followed the four stages outlined above. Investors who were able to recognize this would have made gains of 259% and 805% on separate occasions in Shopify stock. Equally important, they would have sold out before the stock crashed more than 80% earlier this year!

Let’s look at the chart to see what I’m talking about.

Shopify stock went public in early 2015. It spent most of its first year on Wall Street in Stage 1 (yellow channel in chart below), bouncing between the same local highs and lows.

But then, in 2016, Shopify stock broke above its Stage 1 resistance line and entered a Stage 2 breakout. This is when you should have bought the stock. Over the next two years, the stock soared 260%!

Shopify Stage 2: Progress

Shopify’s stock then took a break and entered another period of consolidation in 2018. This was a phase 3 pattern. At this point you are selling the stock because the rally is over and the next move is either a step 4 drop or another step 2 breakout.

The next move ended up being another Stage 2 breakout, with Shopify stock breaking above its Stage 3 resistance line in early 2019. This is when you would buy the stock. Over the next nearly 30 months, Shopify stock remained in a massive Stage 2 breakout and rose over 800%!

This rally ended in mid-2021, with the upside momentum slowing and Shopify stock entering another Stage 3 leading pattern. This is your sell trigger. You book the 800% profit and wait for the next signal.

The next signal came in late 2021. Shopify stock crashed and, for the first time in its life on Wall Street, entered a steep Level 4 decline. spread of the stock or that you sell it short. Between late 2021 and mid-2022, Shopify stock fell 80%.

Following the stepwise analysis, you would have avoided this catastrophic accident.

Now the ugly Stage 4 decline in Shopify stock is over and, as you might expect, the stock is in a basic Stage 1 pattern. We are watching the stock very closely here. Soon it will either stage a big breakout and enter stage 2 (buy signal) or it will break down and come back to stage 4 (sell signal).

In any case, following the step-by-step analysis, we should be able to make a lot of money on Shopify stock over the next few months.

The Final Word in Today’s Bear Market

Now you understand the power of scene analysis.

Shopify stock is just one example. You can apply step analysis to Microsoft (MSFT), Apple (AAPL), Meta (Facebook), netflix (NFLX), Chevron (CLC), Nvidia (NVDA), or any stock in the market – and produce equally good results.

Step analysis works with every stock. It’s the key to getting rich on Wall Street.

There’s just one small problem: it’s really hard to perform a step-by-step analysis on every market action. There are over 10,000 US stocks. Manually running a stage analysis on a stock can take hours. Doing it on more than 10,000 actions would take a lifetime.

That’s why we’ve automated this process.

Specifically, we programmed an algorithmic model that automatically performs step analysis on every market action.

Each week, more than 10,000 stocks are fed by our model. It runs a stage analysis on each of them and produces a list of stock market candidates who might be about to enter Stage 2 breakouts.

It is a robust model. Everything is programmed and automatic, but it still takes more than six hours to fully operate. It is probably the most advanced trading model ever developed at Investor Place.

Today, at 4 p.m. ET, we’ll unveil this model to the public for the very first time.

Trust me. This is a reveal not to be missed. I couldn’t be more proud of the model we have in place, the results it has produced in various back-tests, and the potential it holds to consistently generate income for investors in all markets.

Above all, it’s not too late to reserve your place for this unmissable event.

As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.

Share.

Comments are closed.