"How to spot explosive moves before the crowd" Nate Bear, Lead Technical Tactician, Monument Traders Alliance Hey Gang, People don't realize just how POWERFUL statistics truly are. The right data can highlight opportunities others miss, even in the face of an election, Fed rate announcements, and volatile geopolitics. For example, history shows that November is one of the best months to buy stocks. Armed with this knowledge, I won 68.5% of my 127 trades in November, including eight 100% winners, making it one of my best months of the year. So what comes next? While December is a pretty bullish month, I don't want to rely on Santa Claus to stuff my stockings with cash. That's why I leaned on my team of analysts to test a theory I've been noodling with for the past few years. I knew immediately I was onto something when they showed me the backtests. All the details of this mathematical edge will be discussed LIVE tomorrow at 2:00 PM EST in an exclusive event available to my newsletter subscribers. I'd argue this is my most significant discovery in years. But rather than make this claim out in the open, let me demonstrate how it works using a stock that's been a fantastic trading vehicle this year. Sector Rotation The Magnificent 7 Stocks (NVIDIA, Tesla, Apple, etc) drove nearly all of the gains until late summer. Then, something shifted. While many of these stocks continued to rise, we saw a notable pickup in other places, such as utilities, financials, and most recently in small caps. These market shifts aren't anything new. But I always wondered if they were predictable… Now, I don't want to give away everything that I'm going to cover tomorrow. But as you probably guessed, I did find a pattern. What really excited me was how much of an edge this basic concept revealed. Based on our data, my strategy identified key market shifts with stunning accuracy - delivering a win rate that most traders dream about. Yet, that scratches the surface of what can happen. Because once you learn how to layer on my TPS setup with an A+ rating…well, let's just say it creates immense opportunities. Let me give you an example using one of my favorite stocks, Costco (COST). Costco (COST) This year I have traded Costco's stock 37 times, winning 67.5% of my trades. When you look at the daily chart, it's not hard to see why. Our backtesting showed this strategy could have captured a 201% gain at its peak in just 29 days during November - and that's just one example of what's possible. The key is combining my TPS setup with this new mathematical edge I've discovered. As a refresher, my TPS setup has three components: - Trend: A clear upward trend that you can easily identify by looking at the chart
- Pattern: A range where price begins to consolidate and narrow
- Squeeze: An indicator of when the Bollinger Bands move inside of the Keltner channel (shown at the bottom of the screen when the d
The A+ version looks for stacked moving averages, where the 8-period is over the 21-period which is over the 55-period exponential moving averages. Right now, the only setup is on the 78-minute chart, and it's yet to become an A+. That's perfectly fine. I don't have to have a trade in Costco. My goal is to find enough of these stocks and start monitoring them so that when a high-quality setup appears, I'm ready to exploit it using this extra edge. |
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