Capture Triple Digit Gains Through Microbursts

Most traders aren’t even aware of what I’m about to tell you…

Stock indexes were up about 20% in 1999 and those major stocks moves can be attributed to just 25 different stocks.

These microbursts have an 85%, 90%, and even 95% accuracy rate.

Why is it important to take advantage of microbursts within the stock market?

If you weren’t in on those 25 stocks, you most likely didn’t come anywhere close to generating the 20% returns that year.

When I started trading, I knew there were going to be great opportunities, but I was shocked at the amount of great opportunities that exist with this approach.

I was skeptical at first, but regardless I took my first trade after uncovering the details of this approach.

My first trade was a buy signal and the price action looked like this…

As you can see, It’s difficult to buy in a bearish market, but I took the trade anyways.

One thing I’ve learned about this approach is that for the most part you can throw out conventional technical analysis wisdom.

Due to how this stock reacted to this microburst, I cleared 400% with this trade opportunity and it kept going up.

When a signal occurs, the market doesn’t have to make a move in the direction of that signal and while the influencing factors that allow these trades to work are powerful, they are not the only factor that affect price action.

This is why I trade a very specific option approach with most of the signals in order to limit my risks.

With options, if you do right, you can skyrocket the risk adjustment returns.

Now, there are two interpretations that matter when it comes to any kind of analysis of stock direction…

  1. Your interpretation, which could be right or wrong.

  2. The market’s interpretation that’s always right because it takes into consideration all influences.

However, the #1 key to finding super seasonals is to make sure the opportunity sticks out like a sore thumb.

In other words, there’s probably a solid seasonal influence at work if you have a percentage of time where the market has moved up and the degree that it has moved up dwarfs all other time periods.

For example, Hershey (HSY) experiences a microburst in the month of February.

The total amount that HSY has moved up during the month of February, if you add it all up from the first and last day of February every year, has a net of almost $40.

40% of the lifetime move in HSY has occurred during only 7.0% of the time and has a market efficiency ratio (MEE) of about 5.70.

So, how do you take advantage of seasonal opportunities?

Capture these microbursts and every opportunity that exists with Ryan Jones’s Seasoned Stocks.

Watch the Full Video Here

 

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