stockbee

11/01/2018

If you want to make millions trading study stocks up 20% in a week everyday

This is the single best thing you can do to improve your trading.
If you want to catch fish , you study fish behaviour.
If you want to be leader, you study other leaders daily.
If you want to make money, study people who make money.
If you want to be happy , study happy people.
Same way if you want to capture explosive momentum bursts study momentum burss of 20% plus or 10 dollar plus in 5 days.
Study top 25 stocks up most YTD.

You can do this easily by scanning for stocks up or down 20% in a week or up and down 10 dollars in a week. 





If you study these stocks for months you will understand how explosive momentum burst happen and what kind of scan will find them on first day .

I study this everyday and has been doing it for over 18 years. All my setups are based on such studies. 

If you want to make millions trading study the fastest moves daily and then design a method to catch them. 

10/31/2018

Study of last 7 bottoms



How do bottom form. What kind of patterns form at bottom . If you study that you can make proper decision near bottom.









If you want to make millions trading be a well informed trader.

Bonus 1987 bottom


10/30/2018

Free Money= Earnings surprises





There are always some stocks that have significant earnings surprise either to upside or downside. Such earnings surprises lead to rallies in such stocks.

PEAD (Post Earnings Announcement Drift) is a very well known and extensively studied market anomaly. Ball and Brown first documented the PEAD phenomenon in 1968. Since then hundreds of thousand studies have confirmed their findings across world markets. 



As its name suggests, the PEAD is the tendency of stocks that beat earnings expectations to continue to drift upwards after the announcement, or likewise for stocks that miss earnings to continue to drift downwards. 

Everyday during earnings season number of companies surpass earnings expectations or miss earnings. When earnings is announced it is compared to existing expectations. Iif the earnings is a major surprise to the market then the stocks reacts immediately to that news. Most of the time the stock with significant earnings surprise  will make 40 to 100% move on earnings day itself. Depending on market conditions these stocks can go in to multi week rally. In uncertain market conditions, they tend to pullback and go sideways or form range and then breakout nearer to next earnings.

When looking for PEAD candidates , stocks with first or second significant earnings surprises and significant earnings growth lead to big moves. After a few quarters of earnings acceleration, everyone notices it and the reaction is more muted as the earnings get discounted. Very few stocks can consistently surprise on upside for more than few quarters. 


There is a cockroach effect in earnings trends. One earnings surprise is typically followed by many more earnings surprises. When you focus on first earnings acceleration there is good chance your stock will have more such earnings. So effort spent in researching stocks during earnings season can pay you off for many quarters. The structural factors which contribute to earnings acceleration do not disappear in one quarter. That is why earnings trends persist and price trends persist.

10/28/2018

How to improve 401k returns

Easiest way to improve returns in 401k is to select funds based on relative momentum. One easy and free way to do that is using Yahoo Finance site.


As the comparison above shows barring 2 or 3 funds in this 401k choice it is not worth looking at other choices. All other funds are underperforming for many years.
The Stockbee lemonade strategy for 401k use both Market Timing and Fund selection to invest in 401k . Near the bottom selecting a fund or funds with history of long term relative outperformance is good strategy.

After that on ongoing basis ranking fund choices by TI42 will help you outperform the markets. 

10/26/2018

All the scans to make money



All the scans I use to make money . If you set up a well thought out trading setups and process , it is very difficult to not make money in this market. Stocks are making big moves. Big volatility = big money.


10/25/2018

Extreme breadth day


One of the rare big down days in last few years. Days above 1000 typically happen in corrections.