Part of the value of subscribing to TradeStops, or even just reading our editorials, is following our groundbreaking, original investment research. We’re always looking for ways to help individual investors make more and risk less.
If I say so myself, this year we delivered in spades.
Today I’m going to briefly review some of the highlights of our investment research from the past year … and share with you a stock that passed all the screens.
The first theme we covered extensively this year is the power of buying a stock when it triggers a new SSI Entry signal and is in the SSI Green Zone.
In June, I showed you how to crush the S&P 500 by using only the SPY ETF. This article showed you that by following the SSI signals and only being long SPY when it was trading in the SSI Green Zone, you could have tripled the performance of the S&P 500.
In August, I took you into my investment research lab and showed you how you could make 37% per trade over a 20-year time frame using the SSI signals. This included almost 7500 trades in 1300 different tickers. The bottom line is that the SSI signals on winning trades outperform the losing trades by 5-1.
In October, we looked at how stocks that have given an SSI Entry signal could capture crazy gains before touching the SSI Yellow Zone. This research changed my own personal trading. I don’t wait for pullbacks as much for stocks that are in the SSI Green Zone.
Fiserv (FISV) was a good example of a stock that was in the Green Zone for almost two years before it touched the Yellow Zone.
And in November we asked, “When is too late to buy?” We found that even if you missed the SSI Entry signal, you could still buy the stock up to 2 VQs higher from the original SSI Entry signal.
Berkshire Hathaway Inc. (BRK.B) was a perfect example of this.
Finally, over the past few weeks we’ve looked at how expanding volatility (i.e., increasing VQ) can be the fuel a stock needs to kick-off a multi-year uptrend. I called this stock picking on steroids.
The S&P 500 was an excellent example of this going back 45 years.
So today I’m going to show you a stock that fits into all of these categories.
SSI Green Zone? Check. It triggered a new SSI Entry signal in the middle of April.
Sector moving higher? Check. This stock is part of the energy sector that has been in the Green Zone since the end of April.
Still within 2 VQ%? Check. The stock is trading at about $19, and the 2 VQ% level is at $23.
History of VQ% moving higher and the stock moving higher when the VQ% comes down? Check.
Here’s the chart of our mystery stock for the past 30 years. You can see that at almost all times when the VQ% peaked higher than the 30% level and then began to move lower, the stock had multi-year moves higher.
What’s the name of our mystery stock? Marathon Oil (MRO).
TradeStops isn’t in the business of giving securities advice … and this is not a stock pick. You have to decide for yourself what factors to consider before purchasing any new stock. However, it is an intriguing opportunity for your additional consideration that meets all the criteria of our 2016 research.
Consider it an early stocking stuffer.