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By J. Daryl Thompson
CEO, Trade Your Way To Wealth, LLC
www.tradeyourwaytowealth.com $29.95
“Stock Market Miracle: How You Could Have Turned $200 Into $6.6
Million… In Just One Year!”
J. Daryl Thompson
5030 Fallen Oaks Dr.
Houston, Texas 77091
daryl@tradeyourwaytowealth.com
Did you know you could have turned a tiny $200 into a cool $6.6 million
dollars last year?
Perhaps you’ve seen the ad yourself – it’s been run many times on the
Internet. Just yesterday, I saw it as a banner ad in an Investor’s Business
Daily email I received.
That brought me to a salesletter website with the title “Starting With $200 in
January, You Could Have Been Sitting on $6.6 Million by Dec. 31, Thanks
To… Wall Street’s Most Profitable Stock Strings”.
Now, immediately I thought to myself: “Oh come on! How in the world is it
possible to take $200 and turn it into $6.6 million in one year?”
So I wanted to see proof that this was actually done. Amazingly, the ad
showed me exactly how it was possible.
The basic plan outlined in the ad is very simple, in theory. You were just
supposed to predict one of the strongest stocks in the market for each month
of the year. At the end of each month, you sold that stock and put the
proceeds into the strongest stock for the next month, etc., for the entire year.
A chart was included in the ad for each of the twelve stocks you could have
picked (see below).
I find this chart very, very interesting. It clearly shows how it was 100%
mathematically possible to turn your $200 into $6.6 million in one year!
One by one, I brought up the historical chart for each of the stocks listed
above. And I started seeing a definite pattern after looking at the first four
stock charts.
I eagerly scrutinized the remaining eight charts. Sure enough, each and every
one exhibited a very similar, familiar pattern right before their blast-off
moves.
Baffle Play!
I am always “baffled” at the huge, explosive gains in stock price after this
candlestick pattern setup. But “Baffle” also is an acronym for “Breakout
From A Flat Line”.
And that is, in a true Baffle Play, exactly what the chart is showing. The
stock has done nothing for days, weeks, even months sometimes, moving in
a very tight range. And then, all of a sudden, a surge in price, a breakout,
usually on a heavy increase in volume that “comes out of nowhere”.
Something has radically changed about the underlying company.
Maybe the company landed a huge new contract with another much larger
company. Maybe the latest quarterly earnings were the best in the
company’s history, and that event was totally unexpected. Or maybe the
FDA finally approved a breakthrough drug the company had been
developing for years.
Bottom line, it doesn’t really matter what the underlying condition causing
the Baffle Play is. The point is - this is an easily spotted chart setup, and one
that always precedes a huge runup in the stock price!
OK, let’s go back to the list of stocks that could have turned $200 into $6.6
million in a year’s time.
I’m going to display the chart of each stock for the month it made its big
move. Let’s see what we can find out…
JUPM’s move in January, 2004 was not a true Baffle Play, but it was fairly
close. It did start out with a little Kicker signal, also one of our favorite
candlestick signals, and one of the strongest in terms of performance after
the signal pattern.
By the way, that 39% gain in the last seven trading days shown in February
wasn’t too shabby either!
The IDSA chart is a perfect Baffle Play. When you have a perfect Baffle
Play setup, huge gains almost always happen subsequently. In this case, a
move from the $4 area to the $23 area in less than a month!
For IOTN, the real Baffle Play started the final three trading days of
February.
If you had caught it on that day and held it until the top at $8 in April, that
would have been about a 400% move!
The small Baffle Play that started the move in April was very subtle and
hard to see. But the one that started on the next to the last trading day was
totally obvious, and led to a 100% move in less than a month!
The real Baffle Play started the fourth trading day of May, and still got most
of the big move.
The real Baffle Play started the third trading day of June, and still got most
of the big move.
There was not a good signal that told you to get into ATPG at the start of the
month, but a solid one towards the middle of the month that would have led
to a nice gain if held through the first couple of trading days in August.
This was a picture-perfect Baffle Play, occurring right on the first trading
day of August! And if you held it to the ultimate top in September, that
would have scored you a monster 400% + gain!
CNLG would have been tough to spot at the first of the month. The real
Baffle Play occurred the fourth trading day of September. That would have
still been a great monthly gain, especially if you had caught the intra-day top
towards the end of the month.
The small Baffle Play starting the month was probably too hard to spot, but
the big one on the seventh trading day was too big too miss! And selling it
five days later would have bagged a $4 gain on a $2.50 stock!
The move starting the month would have been too subtle to catch, but the
big volume move towards the middle of the month would have signaled
something was up. Holding to the top in December would have produced a
116% gain.
The Baffle Play for ANTP actually started back in mid-November, and
would have resulted in even a more gargantuan gain if held until the end of
December.
Through months of testing, and with the help of Albert Einstein’s third
cousin, I have developed a software scan that will search the entire stock
market database and pluck out the Baffle Plays, if any, for the day.
True Baffle Plays are relatively rare. But I hope you now see the explosive
results possible after these remarkable trade setups! After all, how many
triple-digit percentage gains do you need each month? I think even ONE a
month would be plenty!
For now, I must keep this software scan proprietary. But I serve these rare
Baffle Plays on a silver platter to my Trade Your Way To Wealth Members
as I see them setting up.
Let’s take a look at some of our own Baffle Plays I’ve discovered over the
past few months…
Hopefully by now you understand the incredible power of the Baffle Play.
Baffles often precede stock price moves of 100%, 200%, even 600% and
more within a few days.
The only problem is, true Baffle Plays don’t happen very often – maybe
once a week at the most.
But we’ve also discovered some “fair-haired sisters” of the Baffle Play that
lead to equally jaw-dropping returns. These plays are very similar to Baffles,
but happen much more often. I usually see at least one a day, sometimes two
or three, even more on active days.
RSVP stands for “Rare Spike On Volume And Price”. And that’s exactly
what the stock is doing – spiking up on intense volume, much more than
normal. The price action usually causes a major gap up on the chart, but the
gap is not required.
Most people, when they see an RSVP Play say to themselves, “Well that was
great, but I missed out on the action.” This is because an RSVP Play often
produces a one-day gain of 20%, 30%, even 100% and more. So it would be
logical to assume the move is over, and to look elsewhere for stock market
gains. Bad mistake.
You see, our research has proven the RSVP Play is often just the beginning
of a monster move in the price of the stock.
Think about it. Why did the stock blast off in the first place? Did the
company’s sales and earnings go through the roof? Did the company land a
new multi-million dollar contract with Wal-Mart? Did it discover the cure
for cancer or AIDS?
Whatever the reason, the huge initial move, especially if it “comes out of
nowhere”, is often the kickoff point for a multi-month, relentless upward
price movement for the stock.
And our research turned up something else very interesting, and highly
lucrative.
But these particular patterns, the ones that form sometimes after the Baffles
and RSVP’s, are not your typical, garden-variety Rising Method formations.
Far from it.
You see, a typical Rising Method candlestick formation will fall under the
category of a “Rising Three Method”. The chart will look something like
this:
This pattern starts out with what is called a "long white day". Then, on the
second, third and fourth trading sessions small real bodies appear - these
small real bodies form from a fall-off in price, but they still stay within the
price range of the long white day (day one in the pattern). The fifth and last
day of the pattern shows another long white day.
This pattern is, in the world of Japanese candlestick charting, a very bullish
chart. It shows an upward trend on day one with investors taking a few
trading sessions to relax to prepare for the next rise in price that occurs on
the fifth day. Even though the pattern shows us that the prices are falling for
three straight days, a new low is not seen and the bulls prepare for the next
leg up.
Viewing the chart above, you can see why we call this the “N” pattern. The
candlestick bodies seem to form a perfect letter “N”.
Perhaps the best way to describe the action of these “Awesome Rising
Method” (ARM) Plays is just to show you some charts of the price and
volume action. Let’s do that now.
And to prove I are not just “cherry-picking” the best situations in the past
year, during times when the market was roaring ahead on all cylinders, I’m
going to show you some plays we found just recently in the current awful
market environment (August 2005).
Here we go…
The initial “Earthquake” for SMTX occurred with the day of the Baffle /
RSVP indicated above. Notice the prior trading pattern – basically flat-lined
in the .75 area. Then the Baffle / RSVP came out of nowhere – a Breakout
From A Flatline on a Rare Spike In Volume And Price.
You can usually buy a Baffle Play immediately. Only a handful of traders
will notice the Baffle day, so you have time to buy before the close of
trading.
Baffle Plays often gap and run the next day, as more and more traders see
the initial explosive move and pile in for possible further huge gains. That’s
exactly what happened with SMTX.
SMTX gapped up on the open the day after the Baffle to the tune of around
20%. Not bad for a one-day gain. But SMTX was not done.
When a stock skyrockets up 20, 30, 40% and more in a day or two, some
traders will immediately take their profits to pocket those extraordinary
short-term gains. The stock will pull back, and this is when I start analyzing
the chart for the “Aftershocks” – and look for the ARM to set up.
This is also the time many traders give up on the stock, assuming that the
“big move has been made” and go on to look for other equally explosive
situations that have not been “discovered” yet. In our opinion, that is a big
mistake.
The first pullback day after the Baffle produced a dark candle that came
about halfway down the previous white candle, an acceptable pullback. The
next day – a Doji. This indicated more action to come.
Sure enough, SMTX exploded the next day for another 43%! (See ARM 1
above). Quite an Aftershock! But SMTX was not even done after that.
The day after ARM 1 produced a gap up Doji, a sure sign of a pullback
probability. Sure enough, SMTX pulled back for a couple of days, but did
not violate that previous ARM 1 candle. That indicated yet more strength
coming from SMTX.
The second day of the pullback produced a short, dark little Hammer signal,
an indication that the pullback may be complete. It was. SMTX rocketed up
yet another 30%, producing ARM 2, with another 11% tacked on the next
day.
That was basically the end of the move; you could have caught a few more
percentage points after that, but you would have had to be extremely nimble.
BCON was a “One-Stock Millionaire Maker” during this time period. It was
also a Trader’s Dream!
We won’t go through detailed analysis on this one, and just let you study the
chart above. But with BCON, you could have made around 400% in less
than two months, with many trading profits playing all the ARM’s in
between.
I think I will always remember that first Baffle / RSVP day for CTTY.
With that kind of extraordinary move, logical thinking would lead to the
conclusion that this was just a “one-day wonder”, a fluke, and it was great
for the lucky holders of the stock, but now there would be no way to make
further profits on this anomaly. WRONG!
For us “in the know” about the Baffle / RSVP / ARM trading system, we
kept watch on the stock to see if the huge white candle could hold up and not
be violated. And our patience was rewarded.
The stock corrected all the way back down to the $10 area. Then, a Bullish
Engulfing pattern about halfway down the white candle. That was our signal
to get back in, and score a 50% gain in two days on the Aftershocks.
Even then, CTTY was not done. It again corrected all the way back to the
$10 area, where history repeated. Another Bullish Engulfing pattern – and
another 50% gain – this time in one day.
Don’t you love one-day gains that would normally be fantastic two-year
profits?
For TMTA, I think the chart above tells it all. Again, a clear indication of the
power of the Baffle / RSVP / ARM trading system.
The chart for CNVR above also plainly illustrates the “Earthquake and
Aftershocks” trading system in action.
Hopefully I’ve proven to you by now with these actual, real-life examples of
the Earthquake and Aftershocks trading system in action the enormous
percentage gains possible each and every day in the stock market.
Here at Trade Your Way To Wealth, we feature the most powerful, intensely
researched, “Maximum Wealth In Minimum Time” investing and trading
systems on the planet.
Our Members are not satisfied with investment returns that may make us
rich in 30 or 40 years. Nope. The next five years would be fine.
For that to happen, you have to “time compress” your investment and
trading returns. That means you have to find a system to make a return in
two or three days that most people would be satisfied making after two
years.
Our Trade Your Way To Wealth exclusive premium product, the Baffle /
RSVP / ARM service, is the surest way to speed wealth we have ever found
in stock market trading.
And we are so sure you will make money with it, we will offer an exclusive,
never-done-before guarantee.
J. Daryl Thompson
CEO, Trade Your Way To Wealth LLC
www.tradeyourwaytowealth.com