Last Thursday, we got a triple-barrel technical buy signal that we have never seen before.
The first one – the powerful Breakaway Momentum indicator – is an ultra-rare technical indicator all on its own. This only gets triggered when bear markets end, and when bull markets begin. In short, the Breakaway Momentum indicator tracks the ratio of the total number of stocks in the New York Stock Exchange that are advancing, and the total number of stocks in the NYSE that are declining.
This indicator just flashed for the first time since June 2020, marking the 25th time this has happened since 1949, or just four years after the end of World War II.
Why is this significant?
Well, the Breakaway Momentum indicator has a 100% track record of stocks rallying in the following six to 12 months, with an average return of 20%. Bottom line: When this flashes, you should pay attention.
That, on its own, would prove significant enough for us. But we got two more technical signals as well – the Whaley Breadth Thrust and Triple 70 Thrust indicators.
Historically, we’ve only seen two of the three indicators flash simultaneously. And since 1970, this has happened seven times. In these instances, stocks were higher three, six, and 12 months later with an average 12-month forward return of 26%! The lowest return? 13%. Mind you, we’re talking about the times when only two of the aforementioned three indicators flashed on the same day.
We just triggered all three.
The Nasdaq, subsequently, has gone on to score seven consecutive days of winning – another indicator that this bear market is over.
Folks, the price is shaping up consistently with a massive market rebound over the next few months. This is important, as the biggest money is made when bear markets turn into bull markets.
Imagine what you could achieve with a system that’s set up to find stocks on the cusp of breaking out (and there will be many), before even the smart money piles in.
The Best-Kept Secret on Wall Street
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:
- 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.
- 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.
- 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.
- 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.
Breakout Stock: ProQR Therapeutics NV (PRQR)
Let’s look at a stock few people have heard of – ProQR Therapeutics NV (PRQR).
ProQR isa Dutch biotech company that specializes in the development of RNA therapeutics for rare genetic diseases with an ophthalmologic application. The company has several potential therapies in development, and its QR-110 treatment of LCA (caused by mutations in the CEP290 gene) completed clinical trials in October 2019. The company also has several other therapies in pre-clinical development for the treatment of genetic disorders such as cystic fibrosis and Usher syndrome.
ProQR has been on Wall Street since 2014. Since then, the stock has been volatile, with significant fluctuations in price. Depending on when you bought in, you could have either made a lot of money or lost a lot of money.
Here’s the thing: Over those eight years, the stock has predictably followed the four stages outlined above.
Let’s look at the chart to see what I’m talking about.
PRQR, similar to our other two recommendations, experienced a sharp decline nearly one year ago. However, it then entered a consolidation phase, trading sideways through late-November.
Then, in November, the stock saw an explosive breakout on extraordinary volume, with 90 million shares trading hands, compared to its usual less than 5 million shares per day. This breakout was further propelled by the announcement of the expansion of its licensing agreement with Eli Lilly (LLY) in December, resulting in a vertical climb.
Currently, the stock has been consolidating in 2023, which is not uncommon after such a significant surge.
We have a beautiful technical chart here for PRQR, where the moving averages are lined up in a waterfalling fashion – the 50-day MA is on top of the 100-day MA, which is on top of the 200-day MA.
By following stage analysis, you would’ve avoided its catastrophic crash in February 2022.
Just like Cabaletta Bio (CABA), PRQR has been incredibly strong in its Stage-2 breakout, and it has not yet pulled back to establish support at any of the moving averages.
By simply following stage analysis, we could make big money off ProQR stock over the next few months (or avoid another catastrophic loss).
The Final Word
By now, you understand the power of stage analysis.
ProQR 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 which 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 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. Eastern, we are going to unveil that quantitative model.
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 real-time, and the potential it holds to constantly generate income for investors in EVERY market.
Be sure to tune into that event later today. But right now, I urge you to watch a preview of this event that will set you up to capitalize on this coming gold rush in the stock market. Just click on the video below to watch now.