Stock Market

Today’s a really special day for me. That’s because today is the day I get to unveil the best kept secret on Wall Street – a secret that could help you make big money in a bull or bear market.

Source: GluckaPixels / Shutterstock

The story here is pretty simple.

About a year ago, my team of Caltech quants and I started to get a little bit worried about the state of the stock market. We seemed to be running on “borrowed time,” if you will, and a market downturn appeared imminent.

So, in late summer 2021, we set out to create an algorithmic trading system designed to win big even in a down market. That is, on the idea that there’s always a bull market somewhere (even in broader bear markets), we started to build a system purpose-built to find those hidden bull markets in preparation for a coming bear market.

A year later, that bear market has struck with full force. It’s kicked most investors in the teeth and crushed most stock portfolios.

But, also a year later, we’ve finished this bear-market-crushing trading system.

In other words, our greatest weapon to fight back against this bear market has finally arrived!

And this afternoon, at 4 p.m. Eastern, we are going to unveil that system for the first time ever in our must-see Rapid Cash Flow Summit.

Be sure to tune into that event later today. But, for now, I’m going to detail my breakthrough system for beating back the bear market.

Every Stock Follows a Pattern

The best-kept secret on Wall Street is that every stock follows a similar pattern, and understanding this secret is the key to consistently scoring big profits in the stock market.

Specifically, every stock goes through four stages:

  • Stage 1: Basing. This is when a stock is stuck in neutral, and moving sideways, bouncing around a lot but ultimately going nowhere. It’s basically when a stock is neither good nor bad, but simply waiting for something good or bad to happen.
  • Stage 2: Advancing. This is when a stock starts to breakout from its basing phase and starts to move significantly higher. At this stage, the stock is usually benefitting from a lot of good news flows and investors are rushing into the stock hand over fist.
  • Stage 3: Topping. This is when a stock’s uptrend starts to end. The good news flow starts to ease. Investors who bought in Stage 1 and 2 start to take some profits off the table. But the stock isn’t falling, yet. New money is still supporting the stock in a consolidation pattern.
  • Stage 4: Declining. This is when the topping pattern breaks, and everyone starts to sell. The stock starts to move significantly lower and in a rapid fashion. It’s the opposite of Stage 2.

Eventually, all stocks in Stage-4 declines stop falling, and enter a Stage-1 basing pattern, at which point the cycle starts all over again. Lather. Rinse. Repeat.

That may sound like an oversimplification. But believe it or not, every stock does actually follow this pattern.

Let me show you an example:

Shopify in its 4 Stages

Let’s look at one of the market’s most popular stocks, e-commerce solutions provider Shopify (SHOP).

Shopify stock has been on Wall Street since 2015. Through those seven years, the stock has predictably followed the four stages outlined above. Investors who were able to recognize this would’ve scored gains of 259% and 805% on separate occasions in Shopify stock. Just as important, they would’ve sold before the stock collapsed more than 80% earlier this year!

Let’s look at the chart to see what I’m talking about.

Shopify stock went public in early 2015. It spent most of its first year on Wall Street in Stage 1 (yellow channel in the chart below), bouncing between the same local maximums and minimums.

But then, in 2016, Shopify stock broke above its Stage-1 resistance line and entered a Stage-2 breakout. This is when you should’ve bought the stock. Over the next two years, the stock soared 260%!

Shopify stock then took a breather and entered another consolidation period in 2018. This was a Stage-3 topping pattern. At this point, you sell the stock, because the rally is over, and next move is either a Stage-4 decline or another Stage-2 breakout.

The next move ended up being another Stage-2 breakout, with Shopify stock soaring above its Stage-3 resistance line in early 2019. This is when you would buy the stock. Over the next nearly ~30 months, Shopify stock remained in a massive Stage-2 breakout and popped more than 800%!

That rally ended in mid-2021, with upward momentum slowing and Shopify stock entering another Stage-3 topping pattern. This is your sell trigger. You book the 800% profits and wait for the next signal.

The next signal came in late 2021. Shopify stock broke down, and for the first time in its life on Wall Street, entered a big Stage-4 decline. This is when you either stay away from the stock or short it. Between late 2021 and mid-2022, Shopify stock dropped 80%.

By following stage analysis, you would’ve avoided this catastrophic crash.

Now, Shopify stock’s ugly Stage-4 decline is over and, predictably, the stock is in a Stage-1 basing pattern. We are watching the stock very closely here. Soon, it will either stage a big breakout and enter Stage 2 (buy signal) or it will break down and go back into Stage 4 (sell signal).

Either way, by following stage analysis, we should be able to make big money off Shopify stock over the next few months.

The Final Word on Today’s Bear Market

By now, you understand the power of stage analysis.

Shopify stock is just an example. You can apply stage analysis to Microsoft (MSFT), Apple (AAPL), Meta (FB), Netflix (NFLX), Chevron (CVX), Nvidia (NVDA), or any stock in the market – and produce just as good of results.

Stage analysis works with every stock. It’s the key to getting rich on Wall Street.

There’s just one tiny problem: It’s really hard to run stage analysis on every stock in the market. There are over 10,000 U.S. stocks. Manually performing stage analysis on one stock can take hours. Doing it on 10,000-plus stocks would take a lifetime.

That’s why we’ve automated that process.

Specifically, we’ve programmed an algorithmic model that automatically runs stage analysis on every stock in the market.

Every single week, more than 10,000 stocks are fed through our model. It runs stage analysis on every single one of them, and it produces a list of stock candidates which may be on the cusp of entering Stage-2 breakouts.

It’s a heavy-duty model. It’s all programmatic and automatic, yet it still takes more than six hours to fully run. This is probably the most advanced trading model ever developed at InvestorPlace.

Today, at 4 p.m. ET, we are going to unveil that model to public for the first time ever.

Trust me. This is an unveiling you don’t want to miss. I couldn’t be prouder of the model we’ve put together, the results it has produced in various back tests, and the potential it holds to constantly generate income for investors in every market.

Importantly, it’s not too late to reserve your seat to this must-see event.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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