You are going to enjoy this email. Today, I am going to teach you the shortcut to finding great stocks. What will surprise you is how it’s done. If you had to guess, what would you say?
Your mind is probably racing now.
I’ll give you one hint before I reveal the answer. It can only happen in a specific type of market.
Are you starting to see it?
The shortcut to finding great stocks is recognizing strength when it reveals itself on a weak day in the stock market. On a strong day, it’s hard to separate strength from stocks getting carried up with the tide. The only ones that stay down are weak stocks.
Likewise, on a weak trading day, neutral stocks drift down, weak stocks really get hit but the strong – well, the strong reveal themselves! Not only do they go up, it’s usually on above average volume. This means that the big funds have been waiting for a buying opportunity so that they can grab the stock without moving the price too much on themselves. They do it on a weak day because the public sells on weak days and the more they can get away with, the more they buy.
So in this scenario, you will have a market that is down (ideally triple digits) and a stock that is rising. It will be trading above the average volume which indicates that institutions are involved.
I then look for this stock to outperform the market for the next 2-4 weeks with an expected return of 10 to 12%. If the market is exceptionally strong, then that return could exceed 20%.
Not bad if you have limited time to watch your stocks…. but want the benefits that come with being more “hands on” with your positions. By using general market conditions to eliminate almost all of your available options, you are simplifying the process.
It’s an easy way to find great stocks. When you combine successful stock-picking strategies with proper execution – the result is a very rewarding stock market experience.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading System