Over the years, as our work progressed, we have noticed something of significant importance. We have noticed that large directional moves in underlying equities or markets typically happen when there is a short period of TIME between a major cycle top or bottom and its subsequent upcoming bottom or top.
In other words, powerful directional moves typically happen between these two important points of force. Our work is able to identify these points and then project when any underlying security will make a powerful move up or down. Typically within a compressed period of time of 12 months or less.
Crude Light (CL) chart below is a perfect illustration of that in 2008, recent March of 2020 low and to a lesser extend in 2016. For instance, there was a major cyclical top in CL in July of 2008 and a major bottom arriving in March of 2009. It would have been reasonable to assume that a major move down would take place during this period of time. And it did.
Our software is able to scan all financial instruments and identify stocks or markets where such periods of volatility are coming up in the near future. We can then use the rest of our mathematical and timing calculations to confirm the move and its directional extent.
How does it work?
Please see our “fast mover” identifier below. We can load any number of stocks into it, identify parameters we are looking for and let it run. The RED stocks are indentified as stocks of interest or possible fast movers. We can then open each one individually and determine if the identified stocks need further analysis or not.
For example, the stock below has been identified as a potential upcoming “fast mover”. Not only does it have a prior occurrence of such a move (confirmation), it is clearly projecting such a move is about to develop again.
We then used the rest of our analytical tools and mathematical calculations to confirm that a fast move in this underlying equity is indeed coming. In that regard we have been able to identify the exact location of the top, in both price and time, and the subsequent extent of the upcoming decline.
For example, the following trading parameter can be set in motion (hypothetical).
Top projection $82 (+/- 1) to be hit on July 14th, 2023 (+/- 1 trading day). Projected bottom, March 2024 at $34 (+/- $2). Short entry at $81 if price lines up with time – stop loss at $83.50. The spread can be narrowed down with short-term work/calculations. Projected return over the next 12 months 50%+, risk is at about 3%.
As you very well understand, this could be a game changer.
To very quickly summarize, these calculations give us an ability to identify equities that are about to move fast (50%+) and do so within a compressed time window of 12 months or less. That in turn minimizes risk by allowing us to take risk averse positions with clear trading parameters (tight stop losses). Huge upside potential is self evident.
If you would be interested in what stocks are about to move fast, please do let us know at alex@4-dcapital.com or 858.437.9858