A Mini Wealth Opportunity Lesson

Below you will find a number of charts that reveal some of the repetitive events that typically lead to big moves in stocks, options, commodities, futures and currencies. The underlying instrument matters very little. After all, it takes people to move financial items and the patterns I teach you to identify and exploit are nothing more than the footprints of people putting money to work. 

Twenty-three years ago, there were few programs that allowed for regular traders like myself with limited funds to chart stocks. So, I bought reams of graph paper and began charting 3,800 stocks myself, every single night. I would literally draw in the bar for ever single stock (open, high, low, close), which me teak my numerous hours to complete. I had the sectors separated by folders and after a while, I could tell you where any stock was, where it used to be and where I thought it was likely to go. I would even know which sectors were hot, which were not and where the vast majority of institutions were already saturated. 

This process helped me develop an intimacy that was unrivaled by most and so many people were amazed at what they considered to be my encyclopedia understanding of the market's nuances. If someone merely mentioned a stock like Home Depot (HD), I'd erupt into a 2-minute treatise that left them completely stunned and awestruck: "I love HD. The manner in which it took out a negative bar formed in late January, along with the solid formation of a breakaway gap just above above $29, bodes very well for its future. It's just starting. It was up 32 cents on Friday to make a new 52-week high. It's activity over the last month has ignited a brand new life for it that will likely continue for the next 8 to 14 months. It may be a wee bit ahead of itself at the moment, but it must be remembered that HD is a leading indicator for the real-estate market. It moves long before home prices begin to steadily rise, but it also shares space with the retail sector, which is very hot at the moment. So, selling puts on the stock at this mildly overbought stage might allow for you to pick up the stock at a much lower cost basis than you can by simply buying it now or trying to wait for a pullback. Buying HD anywhere between $28.50 and $30 is a gift in my view, because I think this baby is a double over time, even from these levels." I'd rattle off something like that without as much as a hesitation, and the group of people listening to this 20-year old kid would just go silent with the blankest stare you could imagine. Sometimes I'd have to say, "You might want to close your mouth, Mr. Jones."

Strive to be an expert at identifying the small handful of a receptive events that kick off every major move in any market. Do this, and the foundation for a rewarding career in the art of wealth accumulation will have been set in stone. I am forever here to help you achieve this.

Three Charts to Study