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Over the past ten years I have developed and perfected the Oakes Momentum System. This system has one goal in mind: Time the market for huge profits. Now, my strategy has become the foundation for a new trading service called: Black Sheep Trader.
Every once in a while there’s a play that just screams: Buy Me Before It's Too Late!
Recently, I used the system to find our latest recommendation, as illustrated in the chart below. On 9/24/07, fellow editor Ian Cooper and I introduced this play to our Black Sheep Trader readers with pristine market timing.
So, how does this technical system work? Well, there are a few necessary components that determine whether or not a stock can be labeled a Black Sheep play.
First, we look for stocks with the ability to run. In the chart above, you can see that this is certainly the case. The stock climbed from about $6 in October 2006 to $15 by the end of February of 2007.
That’s a 150% return in just four months!
Second, there must be a long consolidation period following the run, meaning that the stock has shown the ability to find strong support in the face of profit taking and short selling activity. For most of 2007, the stock had basically traded in a very tight channel.
Most investors sigh and become bored with these stocks. This is where you should step in and begin thinking like an advanced Black Sheep Trader. It’s the contrarian trading style that gets you in before the rest of the crowd.
For most of 2007 the stock was tired and ran out of steam. Weak stocks fall just as fast as they rise, but in this case, the stock has held up quite well, thus allowing for buyers to regain their momentum and push the stock higher.
Third, we wait for a buy signal from two key indicators. Specifically I am referring to the Moving Average Convergence Divergence (MACD) and the Directional Movement Index (DMI). When these two indicators agree with each other, something very powerful happens – the stock moves.
I have circled the buy signals in the chart above. Did you notice that the stock just broke out from its trading range? You are witnessing the beginning stages of a new uptrend that is about to emerge. Think of it like a volcano – grumbling and building up so much pressure until it just EXPLODES and sends material and debris sky high into the atmosphere.
That is exactly what will happen with this stock over the next few weeks!
Finally, our revolutionary sell signal comes into play when the stock loses momentum and its time to sell out and beat other investors to the punch. Of course, this is the bread and butter of our strategy. Maximizing gains and limiting downside risk.
What I can tell you is that during a brief beta testing period, Black Sheep Trader generated 14 winners in 18 tries for a total gain of 1,969%.
That’s an average gain of 109% on every play including:
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450% on 3M in two months
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471% on J. Crew in one day
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552% on Apple in two months
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170% on General Electric in six weeks
Bottom Line: If you had put $5,000 investment into each of Black Sheep’s 18 plays... you’d now have $188,446 in just four months. It’s that simple.
Believe me, I’ve been using the system for over ten years. There’s a reason why I live and trade by it. Remember, this is the first time I have decided to release this proprietary system to a select group of qualified investors. Don’t miss your place in line.
To find out more about the Black Sheep Trader service (sell signals, stop loss placement, etc.) please follow this following link.
Good investing,
Stephen Oakes
Editor, Black Sheep Trader & Volume Spike Alert
Would you risk $1,034 if you could end up with $188,446 in four months’ time? If you answered “yes.” then I suggest you give our hottest new trading research service a try.Either we’ll show you 12 triple-digit winners in 12 months... or we’ll pay you. Follow this link now for all the details...
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