Anticipation setups starting to show up and working

The market is in the process of forming bounce. In first phase there were lot of bounces from 52 week low . Now  many of these bounces along with some stocks that have momentum are now forming anticipation setups.

GSX is one example of that.


Member feedback

I just wanted to say thanks for everything you do. I've been trading on and off for the last 5+ years. I've never been consistently profitable. I work full time and have just started getting serious again the last few months. I started learning day trading by trading the open and going into work after that. Started with 10 shares and worked my way up from there. Now that I'm WFH for the time being I added trading the close as well.

I've made a lot of money over the last 2 weeks with that and some shorts yesterday that were breaking down that I held overnight. That was my first overnight hold in months. With those two things I'm up around 25% in the last 2 weeks on a few hundred thousand account. This is heavily thanks to the things you have been teaching.

I attended a boot camp of yours a few years ago and what amazes me the most is how much you have adapted. Most others stick to what they know while you constantly look to refine your processes, adapt and improve.

I still have a lot to learn. For instance I am bad at day trading outside the open and close due to the market being less volatile (would be up closer to 35% if I didn't try), and I often get in way too early trying to fade strength. But thanks to you instead of jumping in long thinking I missed the bottom I stayed calm and made a lot of money today short. I still have a long way to go, but feels like things are finally starting to come together.

As an aside I can't get off work next friday or I would attend boot camp. If the whole virus thing calms down I'll attend the one in NJ since I'm local.

Anyway, I really just wanted to say thanks, the work you are doing helping us is awesome and greatly appreciated!



Market may start bottoming here

Mother of all bazooka fired. Unlimited buying and Quantitative easing . This should put a floor on this correction for time being . Add to that stimulus bill at work, and we have a good chance of bottoming process here.

Select swings should start working as it becomes splitt market. Some stocks will continue to go down while some put in bottom and start moving up.

This is your opportunity to make money. Best opportunity to make money is after big corrections.

I did a 1 hour webinar for members on how to position 401k for this once bottom is confirmed.

What is working currently

One of the strategies working well currently is intraday trades on highly volatile stocks.

Our list of day trading candidates for current market :


The other rade working well is select reversals . PFGC is an example of that


Members Feedback

Just wanted to say thank you for sharing your time and expertise.

I started day trading last month and it is providing my family a life line during these uncertain times.

I am a Captain a Airlines and I can afford to stay at home and not risk my family to the virus because I can make money with the strategies you have taught me.

I am up almost $18k this month and have a goal of at least $30k a month in my trading account. The peace of mind to make money with all weather trading strategy is priceless.

I have recommended stockbee to countless number of people. Thanks again.



Most relevant book for current situation

Super-performance Stocks By Richard Love: An Investment Strategy for Individual Investors based on 4 year political cycle

As the subtitle of the book indicates part of the book is based on the 4 year Political cycle. The author's contention is that because there is a Presidential election every four years, the economy is managed in such a way that two years prior to election there is a boom and most of the problem in economy surface after election. I do not necessarily agree with that reasoning and so the first part I will skip and look at rest of the book.

  • First consideration in buying stock is safety.
  • Safety is derived more from the good timing of purchase and less from the financial strength of the company.
  • The biggest stocks and growth stocks also decline during bear market. Even income stocks (stocks with high dividends) decline during bear market or periods of high inflation
  • Most stocks are price cyclical
  • Buying stocks as the market rebounds from bear market lows. It is the safest time and it offers the best opportunity for large capital gains.
  • The best time to buy most stocks is when market looks like a disaster. It is then that the risk is lowest and potential rewards are highest
  • Buy for large capital gains
  • I believe that the investor should look for stocks that are capable of tripling in value within two years. Since it is unlikely that the investor will buy the stock at lowest price and sell it at highest, it is more likely that he will double his investment rather than triple it.
  • Stocks should not be purchased unless there is a good chance of a big move.
  • Superperformance= SPF (as short form)
  • The selection of common stock for large capital gains depends primarily on a search- a search for super-performance (SPF)
  • I define SPF stock as one that tripled in last two years.
  • Rate of price increase >300 in two years
  • Move was considered ended if price failed to make a new high in last six months
  • Or a if there was a price correction of more than 25%
  • Super-performance has occurred in well known growth stocks and it has happened in well known mature companies at some stage in their growth.
  • It is triggered by many actions such as earnings, mergers , but most often it is found in stocks that are rebounding from oversold conditions, such as those characteristics of bear market bottoms.
  • When you invest in common stock you must make three correct decisions: when to buy, which stocks, and when to sell. The evidence is overwhelming that really good price gains are made by stocks as they rebound from bear market bottoms.
  • SPF price action is not consistent year after year in even the greatest growth stocks. The stock prices usually move rapidly upward for a period of months or several years. That stage might be followed by price reaction or sideways price moves. After a period of consolidation, which sometime lasts for years, there might be another SPF stage.
  • Price SPF phases like these can be highly rewarding financially in a relatively short period of time.
  • Many SPF moves can be correlated with earnings increase by companies.
  • Most SPF stocks belong to small companies with relatively few shares of stocks.
  • Most SPF stocks experience severe declines after SPF phase has run its course.
  • Three causes for price reactions in SPF: weakness in general market, overpricing of stocks, and drop in stock's earnings. Stock price begin to slide much before earnings slide.
  • A winning combination in potential SPF stock is rapidly rising earnings, a small supply of stock, low P/E, and a product that promises strong future growth.
  • Superperformance= SPF (as short form)
  • After you decide on ideal time to buy, next question is "which stock"
  • Look for price volatility . The volatility a stock experienced in past continues in future. Look for highly volatile stocks.
  • Volatility is a result of company's size and nature of the markets for its products, its financial leverage, and volume of trading in its stock.
  • Volatile stocks have larger swings.
  • Huge and mature corporations do not have high price volatility. Small and medium companies do.
  • Large % increase in price is caused by a number of factors, but particularly by the size of the float.
  • Demand for stock is determined by several factors including: price levels, price action, future outlook, earnings trend, overall market direction, sponsorship, cost and availability of money
  • Some of the strongest SPF price moves have been result of a severe imbalance between the limited supply and the demand of investors.
  • Opportunities for a big gains in stock market are most likely to occur in relatively small companies than in companies with many millions of shares outstanding. Look for small company introducing a unique product that is likely to become widely used. This is the combination that has time after time resulted in dynamic growth and volatile SPF price action.
  • Financial leverage in a stock is often responsible for high volatility in the stock's price. In such companies reported earnings can fluctuate greatly if there are large amounts of debt in the capitalization.
  • Stocks with high leverage offer good opportunities for profit provided you can time entries and exits. Such stocks are risky but very profitable.
  • A stock has high leverage if the company has high proportion of bonds and preferred stocks relative to the common stock.
  • A relatively modest increase in income in such companies leads to disproportional increase in EPS
  • Airlines and utilities are best examples of high leveraged companies.
  • When high leverage is combined with an erratic income pattern- such as railroads or certain cyclical businesses, volatility in EPS can occur resulting in great volatility in stock price.
  • Financial leverage is also found in warrants, stock options, and in many low priced stocks.
  • Retail sector is another high leverage sector . Retail tend to have high volume but low margin. Any improvement or deteriorations in margins have strong impact on EPS
  • High leverage is involved when a small company discovers large oil field or metal ores.
  • Safety is sacrificed when you select company with high leverage. High leverage companies have greater danger of going bankrupt.
  • During periods of recession, when profits decline for most businesses, companies that have large amounts of debt sometimes have no profits at all. But as the national economy emerges from recession, corporate sales and profit margins improve. The % increase in profits can usually be larger than for stocks with small leverage. Highly leveraged companies, then, are even more business cycle sensitive and often are buying opportunities when the stock price is depressed.
  • Another type of leverage is that found in low priced stocks.
  • Best place to look for Superperformance (SPF) stocks is among stocks selling at 5 to 20
  • Comparatively few high priced stocks move in to SPF action
  • Cyclical stocks often have abrupt declines in sales or earnings that are temporary.
  • Many low price stocks have only temporary problems and can rebound if earnings and sales rebound.
  • Another kind of leverage is warrants.
  • A warrant is preferable to buying common stock.
  • Avoid warrants with less than one year to go before rights expire and options become worthless.
  • Look for new earnings power
  • Primary objective of companies is profit.
  • Companies are not in a business to make automobiles or soap or television set or widget, they exist to make money.
  • Investors should evaluate companies from the point of view of their profit generating potential.
  • In established companies earnings are predictable. Most of them are too large to be affected by new products. Their product lines are too extensive for a new product to make dramatic change in profit.
  • But in smaller companies profit are strongly affected by change. Their prices often do not reflect changes like new product launch or new management.

  • One place to look for new earnings power is to look where change is happening.
  • Change means opportunity, and change is one thing that is certain.
  • Wars begin and end
  • Fed policy changes from tight to plentiful
  • Technology changes constantly
  • Technology changes during past century have afforded countless opportunities for profit.
  • New industries in last century were
  • railroads
  • automobile
  • airplanes
  • electricity
  • radio
  • computers
  • rocketry
  • electronics
  • birth control pills
  • mobile houses
  • travel
  • Many shareholders who bought shares of these companies at early stages profited handsomely
  • Today there are other companies in similar early stage of development
  • Change in company might involve change of management or acquisition of another company
  • Major mineral or oil find
  • Change implies the introduction of a new element that has not been factored in to current stock price.


Methods trump markets

Market offers many opportunities for traders if you have a well defined methods. The markets are not controllable but your methods are.

As a trader I focus on my methods and their execution. Profit is an outcome of such methodical approach. Methods trump markets. 

The market timing model kept us out of this meltdown in 401k and methods helped in making money on downside.

If you want to survive in this game build methods.

All my members who followed my advice stayed out of trouble and are positioned for big profits once this phase is over.


T2108 at extreme

T2108 is Worden indicator. It tracks % of stocks above 40 day moving average. Currently it is at 3.32.  Such low readings are seen near bottoms. It can go lower than that .

You can see on Weekly chart , these low readings are very rare.


MRNA swing $2700

MRNA swing 

MRNA showed up in 4% scan Friday . Stock was also in Top 25 stocks by momentum. 
It had all the characteristics of 3LYNCH. So bought in last 1 hour with 40 cent stop. 

Early morning in pre market it was at 32.20. Sold half at that and sold rest around 32.10 to to get average 32.15 price.

$2732 net profit after commission for weekend hold. 

That was my only position coming in to today. Now 100% cash.

Last few weeks have been good for trading corona virus plays.


Why study big moves daily

Every day I make a post about importance of studying the nature of the moves in the market.

Post I make on members site.

Did you brush your teeth
Did you comb your hair in the morning
Did you drink your tea or coffee
Did you wear your underwear

Did you do your 20% winner study

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 burst of 20% plus or 10 dollar plus in 5 days.
Study top 25 stocks up most YTD.

Why study these kind of moves daily.
As a swing trader my primary focus is on finding 3 to 5 day  moves of 8% to 20%. This kind of study focuses on understanding the nature of these kind of moves. Similarly studying longer duration Six Month Or year Move allows you to understand market structure better. 
Once you understand the market structure better, you can scan for start of these moves, you can create rules for selecting setups for these kind of moves, you can design entry and exit techniques for these moves.  
A study like this will also help you ts what many participants tell you to focus on and whether that is true.
For example many traders will tell you that the biggest moving stocks in the market have best earnings. Now you have a choice either to believe that or do your own confirmation. When you do that you might find that information is not true.
If you study these moves over months you will discover unique insights that will help you make money. 

How to scan for this studies


Take your trading to next level

The market offers riches to traders who build the right kind of trading skills. While everyone was scared and telling everyone to stay in cash  on Friday , it was indeed one of the best day to put a trade on for quick profits.

Traders who are stuck in certain way of thinking find it hard to make money. They are always waiting for perfect markets to setup and in the process miss out on opportunities.

All these stocks showed up in our Friday reversal scans as seen by the green triangle in bottom panel.

All of them went up big . While others were advocating cash I was fully invested and as a result had great start to the month.

These kind of opportunities are there in this market for informed speculators. Yesterday afternoon I bought 1000 shares of UAL at 59 dollars (after it showed up in our reversal scans) around 3Pm . The stock is already up 4 dollars from entry in pre market . That is easy 4000 dollars for overnight hold.

To find opportunities like these you need to have setups which work under different market conditions and be opportunistic.

Market offers you opportunity to make money everyday , it is up to you to be organised to profit from it.

If you want to take your trading to next level develop a comprehensive trading setups for all market conditions.


Friday night newsletter

From Friday night newsletter. The setup most likely to work currently is bottom bounce. The Anticipation setup list was full of them. And most of them went up today.

 April 4 and April 5 in New Brunswick NJ 
Rutgers Inn
Saturday 8.30AM to 5.30PM
Sunday 8.30 AM to 2.30 PM

$589 per head
10 seats only 

How to Aim for and Achieve Triple Digit Returns

Combining position , swing, and day trading to achive triple digit returns

Making money using breakouts  and breakdowns

Making money using anticipation

Making money using catalyst

Managing trade for maximum profits

How to use TQQQ SOXL LABU TVIX to improve profits at market  turns. 

How to plan and execute a plan for triple digit returns using the stocks with inherent leverage

Lessons from Past advance Bootcamps Presentations

How to develop mind clarity

How to use Visualisation to improve your trading

Situational Awareness:

Looks like short term oversold bounce developed today. Number of stocks were showing bottoming action.

Intraday Trading and Bottom Bounce  my focus currently. 

Daily Money makers for tomorrow 


Long Ideas


Long Anticipation:


Short Ideas

Short Anticipation: 

Weekend warrion Long  

Weekend Warrior Short

401 k

1% invested