The Stock Market Basics

Freedom 35 Membership Plan

Here’s what we’ve got for you:

 
  • Daily stock picks
  • Earnings releases
  • Proprietary algorithm-based market scans

This daily research requires 3-4 hours of scanning for trading ideas multiple different ways using software, tools and systems that have been set up and refined for this specific purpose.  All trading ideas are posted in an easily accessible area and the cost to you as a member is $1 per day.

One winning trade could pay for years of membership to our Freedom 35 Program.

This Is What You Are Going to Get On A Daily Basis:

These stocks have been hand-picked based on technical analysis for follow-through on the next trading day after this list has been published. There will be both long and short candidates on the list, and we recommend that you go with the prevailing direction of the market when choosing your trade. For example, if the market is going up, you should be going long. If the market is dropping, you should be going short. Here are some of our recent stock picks:

On Sept 24 2013, one of our stock picks was CLDX:  http://thestockmarketbasics.com/daily-stock-picks-september-24th-2013-longs/

Here is what we said about it:

“The next long on the list is CLDX, Celldex Therapeutics (NASDAQ:CLDX).  CLDX is a biotech stock that trades on the Nasdaq.  We had this stock on the long list last week and it has really performed, up over 30% from where we liked it last week.  Congratulations to those of you who got it.  Does it have one more day in it?  Maybe, maybe not.  The volume today was higher than anything else in recent days, so we may have seen a top.  Sometimes these can go further than anybody ever anticipates though, so we think it could be good for a quick day trade tomorrow.  Don’t overstay your welcome though, because even if this one does pop it’s more than likely to end up as a shooting star.  For tomorrow, we will consider it for a quick intra-day trade if it moves up above $33 with a target price of $33.50.  A daily chart of CLDX is below:”

 

And here is what actually happened the next day:

 
 

The stock moved up, triggering our trade and running well past our target.  This was a stock that we had on the list for a breakout above $25 and rode for profits multiple times.  There’s no reason you can’t catch moves like this on a regular basis.  Our members were alerted to the move in this stock multiple times and had opportunities to profit from it several ways.

 

On Sept 25 2013, one of our stock picks was ABBV: http://thestockmarketbasics.com/daily-stock-picks-september-25-2013-shorts/

Here is what we said about it:

“The first short on the list is ABBV, AbbVie Inc  (NYSE:ABBV).  ABBV is in the biotech sector and trades on the NYSE.  We like ABBV as a short for tomorrow because this stock has topped out and turned the corner.  The stock had started to chop sideways after topping out and today put in a big move down on heavy volume.  There could well be more continued movement to the downside as people see their profits vanish and start to bail out.  If the stock drops below $45.87, we will consider it as a short with a target price of $45.05 as an intra-day trade.  A daily chart of ABBV is below:”

 

And here is what actually happened:

 

We had a target price of $45.05 and the stock dropped to $45.02 before moving off of the bottom to close at $45.33.  These are the types of trades you need to be taking when the market is moving down.  Get in, get out, make money.

Earnings Release Impact on Stock Prices

Every day that earnings are released, we put out a list of earnings releases worth mentioning.  All of the earnings releases are separated between pre-market earnings releases and after-market earnings releases.  Knowing what stocks are about to release earnings will enable you to put them on your watch list for gaps both up and down and to avoid holding onto these stocks if you don’t want to run the risk of a negative earnings surprise.  If you think that a company is going to deliver an expectations beat, you can get in before the price jump for big profits.

Our earnings releases include a snapshot of the company including key statistics as well as a link to the earnings conference calls and investor relations link.

Within our daily earnings alerts you will have access to everything you need to know about each of the companies on our list.  Here is an example:

earnings example

Market Alerts 52 Week High Scan

The 52 Week High Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have made a new 52 week high.  This means that these stocks reached a price within the past week that is higher than any other price reached over the past year.

Some of these stocks may be overvalued or close to topping out, but all of these stocks are definitely in an uptrend if they are sitting at 52 week highs.

The following are examples of what a 52 week high looks like on the charts:

 

Why is this worth looking at?

Finding stocks that are in an uptrend and have clear skies above means that nobody is trapped in the stock waiting for the stock price to get back to where they bought it so that they can get their money back.  These are stocks that are flying high and there are times when these stocks go further and faster than anyone ever expected.  Stocks trading at 52 week highs often catch the analysts flat-footed as they scramble to raise their price targets on a stock that just keeps on cruising higher regardless of how far it has moved or what the sentiment surrounding the stock is.

Market Alerts 52 Week Low Scan

The 52 Week Low Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have made a new 52 week low.  This means that these stocks reached a price within the past week that is lower than any other price reached over the past year.

Some of these stocks may be undervalued or close to bottoming out, but all of these stocks are definitely in a downtrend if they are sitting at 52 week lows.

The following are examples of what a 52 week low looks like on the charts:

 

Why is this worth looking at?

Finding stocks that are in a downtrend and have no support below means that there is simply no telling how far the stock will drop before some big enough buyers step up to the plate in order to stop the decline.  These are stocks that are dropping like a rock and as the pain gets more and more unbearable, longs that are still in the stock bail out and that panic selling causes the stock to drop further.  These stocks often offer excellent short opportunities as they continue to drop below what is widely considered to be a “reasonable” valuation.

Market Alerts Breakout Scan

The Breakout Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have broken out to the upside on the daily chart.  This means that on the last trading session these stocks moved up quickly, shooting past the entire recent trading range with a big single-day move to the upside.

This is often a very bullish sign since these stocks got bought up aggressively during the last trading session in order for them to move up so much in such a short time.  Often the buying continues on the following trading day as these high fliers catch the attention of swing traders, momentum traders and day-traders.

The following are examples of what a breakout looks like on the charts:

 
 

In the example above, the breakout candle occurred during a consolidation phase.  The stock broke out of the consolidation to the upside.  This means that enough buying activity has come in to push prices out of the recent trading range and a new move up is just getting started.

 
 

In this example, the stock gapped up and then shot up throughout the day.  The breakout was above all recent trading activity and the volume was many times the daily average.  A lot of people wanted in for the stock to shoot up like this on such heavy volume.

Why is this worth looking at?

Finding stocks that have broken out means that there is some serious buying interest right now.  Stocks only shoot up like this when somebody wants in in a big way.  Oftentimes stocks such as these continue to run up as more people take notice.  One trader may find a stock because it had a big single-day move, another might find it because he was looking at various stocks in the sector and this one in particular stuck out, and another trader may find it because the stock triggered a moving average crossover system he or she uses.  Longer-term investors who were evaluating this particular stock may also decide to jump once they see it start to take off because they don’t want to “miss it”.  As more and more market participants decide to enter, these stocks get pushed up further.  Stocks that are breaking out often offer excellent trading opportunities as they move up rapidly, giving you an opportunity make profitable trades out of the overall move.

Breakdown Scan

The Breakdown Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have broken down with a big drop on the daily chart.  This means that on the last trading session these stocks fell quickly, dropping below the entire recent trading range with a big single-day move to the downside.

This is often a very bearish sign since these stocks got sold off relentlessly during the last trading session in order for them to move down so much in such a short time.  Often the selling continues on the following trading day as these stocks fall like rocks and catch the attention of swing traders, momentum traders and day-traders.

The following are examples of what a breakdown looks like on the charts:

 
 

In the example above, the big breakdown candle happened after a weak attempt to move up got sold off.  The stock broke down below the recent lows and made a sharp move to the downside on heavy volume.  This means that enough selling pressure has come on to push prices down from the recent trading range and a new move to the downside is just getting started.

 
 

In this example the stock triggered on the breakdown scan 20 candles back and followed through to the downside over the next few weeks.  The breakdown was below the recent trading range and the volume picked up on the sell-off.  A lot of protective stops would have triggered on that session and afterwards prospective longs are likely to be nervous about getting in after seeing that type of action.

Why is this worth looking at?

Stocks that are breaking down clearly have some serious selling pressure at the moment.  It could be profit taking, bad news, heavy selling pressure, an analyst downgrade, legal ruling, or any number of other things.  That fact is stocks only drop like this when somebody wants out in a big way.  Oftentimes stocks such as these continue to collapse as more people take notice.  One trader may find a stock because it had a big single-day move, another might find it because he was looking at various stocks in the sector and this one in particular stuck out, and another trader may find it because the stock triggered a moving average crossover system he or she uses.  Longer-term investors who are long the stock are getting squeezed out of their positions as the stock moves lower.  Short sellers will also get aggressive with weak stocks making big moves to the downside.  As more and more shorts decide to enter and longs get stopped out, these stocks get pushed down further.  Stocks that are breaking down often offer excellent trading opportunities as they move down.

Market Alerts Bearish Engulfing Scan

The Bearish Engulfing Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have made a bearish engulfing candle on the daily chart.  This means that at some point during the last trading session, these stocks were trading higher than they closed at the day before and they dropped to a point lower than they were trading at the day before.

This is often a very bearish sign since these stocks got sold off so relentlessly during the last trading session.  Often the decline continues on the following trading day.

The following are examples of what a bearish engulfing candle looks like on the charts:

 

In the example above, the bearish engulfing candle occurred at the end of an uptrend.  This does not necessarily mean that the uptrend is over, but after an extended run up it is natural for longs who have been in the stock for a while to take profits.  If the bearish engulfing candle occurs at the end of an uptrend, the stock often continues to pull back until a new wave of buying pushes it back up again.

 
 

In this example, the bearish engulfing candle occurred after a period of sideways movement.  If the trend is sideways or down, a bearish engulfing candle often means that a new wave of selling is coming into the stock and the momentum is to the downside for the time being.

Why is this worth looking at?

Finding stocks that are in a downtrend and have no support below means that there is simply no telling how far the stock will drop before some big enough buyers step up to the plate in order to stop the decline.  These are stocks that are dropping like a rock and as the pain gets more and more unbearable, longs that are still in the stock bail out and that panic selling causes the stock to drop further.  These stocks often offer excellent short opportunities as they continue to drop below what is widely considered to be a “reasonable” valuation.

Market Alerts Bullish Engulfing Scan

The Bullish Engulfing Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have made a bullish engulfing candle on the daily chart.  This means that at some point during the last trading session, these stocks were trading lower than they closed at the day before and then moved up to a higher point than they were trading at the day before, completely engulfing the body of yesterday’s candle.

This is often a very bullish sign since these stocks got bought up aggressively during the last trading session.  Often the buying continues on the following trading day.

The following are examples of what a bullish engulfing candle looks like on the charts:

 

In the example above, the bullish engulfing candle occurred at the end of a downtrend.  This does not necessarily mean that the downtrend is over, but after an extended decline it is natural for shorts who have been in the stock for a while to take profits and cover their shorts.  If the bullish engulfing candle occurs at the end of a downtrend, the stock often continues to move up until a new wave of selling pushes it down again.

 
 

In this example, the bullish engulfing candle occurred after the stock had pulled back at the end of an uptrend.  If the trend is up, a bullish engulfing candle often means that a new wave of buying is coming into the stock and the momentum is to the upside for the time being.

Why is this worth looking at?

Finding stocks that are in an uptrend and have signs of aggressive buying interest means that there are market participants who are willing to pay higher prices for the stock and push it up further.  These are stocks that are moving on up and often people who have been waiting on the sidelines decide that they can’t bear to see the stock go up any further without them and end up buying in.  These stocks often offer excellent trading opportunities as they continue to get pushed up past what is widely considered to be a “reasonable” valuation.

Market Alerts Shooting Star Scan

The Shooting Star Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have made a “Shooting Star” on the daily chart.  This means that on the last trading session these stocks ran up and then sold off sharply to end the day closer to where they started off than where they got to at the high of the day.

This is often a very bearish sign since longs who bought into the hype watched the rug get pulled right out from underneath them.  Oftentimes those longs are left scratching their heads wondering what happened.  The rally got sold off.  Those who held shares prior to the run up sold into strength and the stock came back down.  Who will buy now?

The following example is what a Shooting Star looks like on the charts:

In the example above, the stock had a shooting star on the previous trading session.  The stock tried to rally up off the bottom and instead it got sold off hard.  Every single long who bought in higher was instantly in a losing position.  The next day, nobody was willing to buy this stock and the sell-off continued.  These types of moves often have more momentum to the downside as the stock gains the attention of short-sellers and day-traders who are looking for stocks that are not able to move up and have no buying interest.

Why is this worth looking at?

Stocks that put in a shooting star are great short candidates.  These stocks clearly have no buying interest as the last attempt at a rally was just sold off so sharply.  If the stock is able to follow through to the downside, it is a very reliable trading signal from the short side.  Stocks that put in a shooting star and then immediately drop lower are excellent short prospects for day-trades, intra-day trades and swing trades.  As longs who bought in during the top of the shooting star see their positions run further and further against them, they too will sell their shares and cause the stock price to drop even further.

Market Alerts Gap Up Scan

The Gap Up Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have “Gapped Up” on the daily chart.  This means that on the last trading session these stocks started out the day higher than they were trading at the day before and ran up to close even higher.

This is often a very bullish sign since these stocks not only jumped up to start out the day, but once people recognized that the stock was moving up they didn’t sell for a profit – they bought more.  Often the buying continues on the following day as more traders and investors take notice and wonder if there might be something to this particular stock that they don’t know about and take a speculative position.

The following example is what a Gap Up looks like on the charts:

 

In the example above, the stock opened up higher than it was trading at on the previous day and ran up to close at the high of the day.  These types of moves often have more momentum to the upside as the stock gains the attention of other traders and investors who are looking for strong trading candidates.

Why is this worth looking at?

Stocks that gap and then follow through in the same direction are trading very reliably.  This is a signal that a lot of traders are willing to take a position based on.  The momentum is clearly in one direction here at the present time and there is nothing to indicate otherwise.  If the stock can continue to move up it will offer good trading opportunities for swing traders, momentum traders and day-traders across different timeframes and trading objectives.  Companies that are about to receive a buyout offer or release other positive news events often give off this type of signal prior to the actual official news release.

Market Alerts Gap Down Scan

The Gap Down Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have “Gapped Down” on the daily chart.  This means that on the last trading session these stocks started out the day lower than they were trading at the day before and dropped throughout the day to close lower.

This is often a very bearish sign since these stocks not only fell out of bed to start out the day, but once people recognized that the stock was moving down they didn’t buy it up thinking they were getting a bargain – they sold it off.  Often the selling continues on the following day as more traders and investors take notice and wonder if there might be something negative going on for this particular stock that they don’t know about and either take a speculative short position or sell their shares if they were already long.

The following example is what a Gap Down looks like on the charts:

 

In the example above, the stock opened up far lower than it was trading at on the previous day and moved down on heavy volume before moving up a little bit from the low of the day into the close.  These types of moves often have more momentum to the downside as the stock gains the attention of short-sellers and day-traders who are looking for strong short candidates.

Why is this worth looking at?

Stocks that gap and then follow through in the same direction are trading very reliably.  This is a signal that a lot of traders are willing to take a position based on.  The momentum is clearly in one direction here at the present time and there is nothing to indicate otherwise.  If the stock can continue to move down it will offer good shorting opportunities for those who are not restricted from placing short trades.  Companies that are about to release bad news or experience other negative events often give off this type of signal prior to the actual official news release.

Market Alerts Death Cross Scan

The Death Cross Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that triggered a “Death Cross” on the daily chart.  This means that on the last trading session for these stocks the 50-day moving average crossed the 200-day moving average to the downside.  This is an often-talked about technical analysis term on business news and investing tv programs.

This is often a very bearish sign since the selloff in these stocks is now getting recognized.  The Death Cross and Golden Cross are the two most widely-known, recognized and talked about things in technical analysis next to support and resistance.  Often the selling continues on the following day as shorts pile in and longs bail out of their losing positions.

The following is an example of what a Death Cross looks like on the charts:

 

In the example above, the 50-day moving average (blue line) crossed under the 200-day moving average (red line) as the stock put in a big move to the downside.  These types of moves often have some more momentum to the downside before they exhaust themselves.

Why is this worth looking at?

Since this is such a widely known and recognized trading signal, it is often self-fulfilling.  If you are holding a stock and you happen to see a clip on CNBC about how the stock is breaking down and the 50-day has just crossed under the 200-day, while the host and guest speakers are all advising to sell the stock immediately and don’t look back, what are you going to do?  What is everyone else going to do?  Most likely you are going to at least consider selling, as are many other people.  Some may sell right away, and others may wait until the stock drops further before giving their shares up.  Because of this, stocks that have just had a Death Cross are often good short candidates as the stocks get sold off.  Those big, panicky moves to the downside offer profitable trading opportunities to savvy traders.  At some point though, shorts that are late to the party will be chasing.  Always keep that in mind.

Market Alerts Golden Cross Scan

The Golden Cross Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that triggered a “Golden Cross” on the daily chart.  This means that on the last trading session for these stocks the 50-day moving average crossed the 200-day moving average to the upside.  This is an often-talked about technical analysis term on business news and investing tv programs.

This is often a very bullish sign since the run up in these stocks is now getting recognized.  The Death Cross and Golden Cross are the two most widely-known, recognized and talked about things in technical analysis next to support and resistance.  Often the buying continues on the following day as longs pile in and shorts bail out of their losing positions.

The following example is what a Golden Cross looks like on the charts:

 

In the example above, the 50-day moving average (blue line) crossed above the 200-day moving average (red line) as the stock held its ground.  These types of moves often have some more momentum to the upside before they exhaust themselves, as you can see on over the next two trading sessions.

Why is this worth looking at?

Since this is such a widely known and recognized trading signal, it is often self-fulfilling.  Swing traders and momentum traders are looking for stocks to go long on for anywhere from a few hours to a few days or weeks and finding stocks that are in an uptrend is the name of the game.  The Golden Cross is something that a lot of traders and investors have on their radars and so these stocks will pop up as trading ideas for a lot of different traders across various trading styles, timeframes and objectives.  Because of this, stocks that have just had a Golden Cross are often good long candidates as the stocks get bought up and surge higher.

Market Alerts Unusual Volume Scan

The Unusual Volume Scan is an algorithm-based scan of a select universe of US-listed stocks to find stocks that have registered Unusual Volume on the daily chart.  This means that on the last trading session these stocks had volume that was at least twice the daily average.  Some of them may have went up, some may have went down, and others may not have done much at all.

This isn’t a signal in and of itself unless looked at in conjunction with other signals.  For example, if a stock has been moving down and all of a sudden has huge volume, you have got to wonder who did all that buying and why.  The same is true for a stock that has been moving up.  For every buyer, there is a seller.  And vice versa.  The fact is a lot of shares traded hands, and if the stock is able to continue on in the same direction you have a pretty reliable price and volume combination.

The following example is what an Unusual Volume looks like on the charts:

 

In the example above, the stock was looking pretty toppy and started to move down.  Once it broke support and started to trigger some stops, we had a real sell-off.  As the volume drops off watch for the stock to start to stabilize again.

 

This example shows a different story.  The stock had put in a big move down over the past few trading sessions.  On the last session the stock gapped down, moved lower, and then got bought up to end the day at the high of the day.  A lot of traders sold their shares in a panic, and someone was on the other side of those trades buying those shares up.

Why is this worth looking at?

Stocks that have registered on the Unusual Volume scan are hot for the time being.  They are getting a lot of attention and a lot of shares are trading hands for one reason or another.  If the stock is moving in the same direction as the volume is going, it’s a reliable trading signal.  For example, if the volume is picking up as the stock is moving up, it means that buyers are interested.  If the volume is dropping off as the price is moving up, it means that there are less buyers pushing the stock price up.  The opposite is true for stocks moving down.  Those that have increasing volume as the stock is dropping have a lot of sellers, and those that have decreasing volume as the stock is dropping are running out of sellers.  When the turn comes, it can be abrupt and catch a lot of people by surprise.

 

The next question we always get is for all of this every day what’s it going to cost me? We want you to see the value in our service and are willing to offer you a chance at financial freedom free of charge for 14 days.  It’s only $1 a day for trading ideas that can generate thousands of dollars per trade.  One successful trade can pay for years of membership.

Put Freedom 35 to the Test for 14 Days Absolutely Free Today

Solutions for more profitable investments:

Daily stock picks for both long & short positions, hand-picked based on technical analysis for follow-through on the next trading day.

Daily lists of  companies releasing financial earnings reports both as the market opens and after the close.

Daily scans of the market for candlestick patterns, 52 week highs & lows, unusual volume, breakouts and breakdowns, gap ups & gap downs, shooting stars and much much more.

Frequently Asked Questions

Q: What specifically will I get from this service?

A:  This service is designed to provide you with actionable stock picks and market alerts that will enable you to reap the benefit of our research for your financial gain. This research takes a minimum of three hours per day under ideal conditions in which you have no interruptions and your system is streamlined utilizing some automation and computer programming.  Our value proposition is simple: for $1 per day, you save yourself three hours of time.

Q: How will this service help improve my trading?

A: This service will teach you to read the price action that goes on in the markets every day and make profits without sitting around biting your fingernails and without exposing yourself and your portfolio to unnecessary market risk.  Our goal is to make money consistently and to make that money in such a way that we are taking a calculated and measurable risk each and every trade. The reward must outweigh the risk and the difference between consistency and inconsistency is the structure of your plan and the consistency with which you follow it.

Q: How long will it take me to implement this service and see results?

A: The service is designed in such a way that you have the ability to pick and choose what you want to use.  You can sign up today and start implementing these strategies immediately.  You can look at our archived stock pick reviews to see our results for yourself.  We send out these daily stock picks every day that the markets are open and every day there are multiple opportunities to profit.

Q: How is this service delivered?

A:  We send out all of the market scans and alerts, daily stock picks, and upcoming earnings to your email inbox daily.

Q: What kind of computer programs will I need to use you’re services?

A: There are no specific programs required. All of our services are delivered in HTML, Excel & Microsoft Word formats that you can view on any computer or in any web browser.  To implement our strategies and place trades, you will need a brokerage account.

Q: Why should I subscribe to this service today instead of waiting?

A:  You can be making money tomorrow if you sign up today.

Q: What if I don’t like this service?

A: You can have your money back.  Our money back guarantee is 14 days.

 

If you have any questions before signing up, please contact us at contact@thestockmarketbasics.com