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The Best Stock in a Quarter Century

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SEPT 01 2023
 
   
SCOTT WELSH’S ANATOMY OF A GREAT TRADE
Just By Looking At One Thing…
 
 
It’s one thing to have a reliable, repeatable, trusted system.
Most traders don’t have that.

Sadly, many never find that.

But once we have a system that produces winning trades on stocks in multiple market conditions, we still have a huge problem.

How do we find winning stocks to trade?

How could we have known NVDA was going to lose its mind and soar through the roof in 2023?

How were we to know TSLA was going to the moon in 2020?

It’s easy in hindsight. 

And super hard in real time.

It’s easy to always miss out, to always be a little too late to the huge winners.

But what if we decided not to worry about that?

What if we decided to just look at one thing? 

Could we still get big trades?

Absolutely.

And we could do it by trading ETFs.

ETFs combine a bunch of stocks into one instrument. We don’t have to know about NVDA (or find NVDA) if we simply trade a tech ETF like QQQ. 

QQQ has almost every big winner we need already mixed into the pot. Here’s a sample of what QQQ holds:

 
 

Just in that screenshot, we see a whole bunch of stocks that have done well in 2023. We don’t need screeners or special inside information. 

So, can we get a big win? 

Here’s a trade from 2020 on QQQ. All we did was wait for two consecutive closes above the 12-month simple moving average and get out on the first close below the moving average:

 
 

As you can see, in 2020, we could’ve made 48% gains trading a simple system with no scanning or research. 

Plus, we’d be in a nicely winning trade as I write this in September 2023.

ETFs may not make as much as a crazy individual stock, but we can still get big winners.

And never suffer from the fear of missing out.

Happy trading,

Scott


P.S. As a reminder, these historical lookbacks are based on my longer-term Weinstein Stage Analysis method. The charts above use monthly candles and a 12 month simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.

Additionally, the teal lines on the chart show the profitable runs.
 
JEFFRY TURNMIRE
The Nasdaq Flash Freeze of 2013: Unraveling the Chaos
 

On a warm August day in 2013, the stock market experienced a jolt that sent shockwaves through the financial world.

A decade ago, on August 22, 2013, the Nasdaq Flash Freeze was etched in history as a pivotal moment that exposed the fragility of modern financial systems and the far-reaching implications of algorithmic vulnerabilities.

The Unprecedented Halt

At approximately 12:14 p.m. Eastern Time, trading on the Nasdaq came to a sudden and unexpected halt.

For over three hours, traders and investors were left in a state of limbo as the exchange grappled with a technical glitch that rendered it incapable of providing accurate price quotes.

This wasn't just a minor hiccup; it was a complete freeze that affected thousands of stocks, including high-profile companies like Apple, Google, and Microsoft.

The Chain Reaction

The Nasdaq Flash Freeze wasn't isolated; it had a domino effect on the broader financial ecosystem.

As trading platforms, investment firms, and financial institutions struggled to make sense of the sudden disruption, panic set in.

Investors were left unable to execute trades or access accurate information about their holdings, causing uncertainty and fear to ripple through the market.

Root Cause and Aftermath

The root cause of the Nasdaq Flash Freeze was traced back to a problem in the system that disseminates stock price data — the Securities Information Processor (SIP).

The SIP was overwhelmed by a flood of inaccurate stock quotes, which in turn triggered a chain reaction that led to the unprecedented halt in trading.

The incident revealed the intricacies and vulnerabilities of modern financial systems heavily reliant on technology and algorithms.

Lessons Learned

The Nasdaq Flash Freeze was a wake-up call for the entire financial industry. It exposed the risks associated with the increasing reliance on complex algorithmic trading systems and the potential for catastrophic failures.

The incident prompted regulatory scrutiny, investigations, and calls for improvements in system resilience, transparency, and communication protocols during emergencies.

The Present and Future

Since the Nasdaq Flash Freeze, exchanges and market participants have taken steps to enhance their technological infrastructure, improve safeguards, and mitigate the risk of similar events.

Yet, the incident serves as a reminder that the complexities of algorithmic trading can never be fully eliminated. As the financial landscape continues to evolve, the importance of risk management and constant vigilance remains of top importance.

As history has shown, even the most advanced systems are not immune to glitches and vulnerabilities.

And just over a year ago, I discovered a glitch which has sent me on a wild ride to a 100% win rate across 58 trades.

I recently went live with hundreds of viewers to delve into the unique glitch that I've been capitalizing on since June 2022…

Earning me — and my followers — a remarkable 58 straight wins with zero losses.

I urge you to watch the video to discover the unique glitch that’s responsible for this string of successes. Click here to watch it now.

— Jeffry Turnmire
   
 

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