1. Big Trends – How to Find Them,
Ride Them and Get Off
Howard Lindzon Ivaylo Ivanhoff
Founder and CEO of StockTwits @ivanhoff
@howardlindzon
howard@lindzon.com
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15. What Do big Winners Have in
Common?
Many of them have explosive earnings and
sales growth;
Many had new product/service that was loved
by their customers;
Many looked expensive on the way up (and
paradoxically – cheap on the way down)
But…
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16. All Big Stock Market Winners
Spend the Majority of Their Time on the 52-
week high list (and better yet, the all-time high
list)
Substantially Outperform market benchmarks
in good and bad times
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17. Price Is the Most Important Part of
Catching a Trend
It doesn’t matter how smart you are; how
ingenious your investing idea is; Until the market
agrees with you, you won’t make a cent. Market
agrees with you, when you see your stocks on the
52-week high, better yet the all-time high list;
The 52-week high list is a raw data point, which
could be enormously useful if you know how to
read it properly.
The 52-week high list is basically a short-cut into
the minds of people, who can create and sustain
trends.
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18. U.S. Housing Recovery Is the Market
Story of the Year and It was Told by the
52-week High List Long Before It
became front-page news
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27. Relative Strength
How A Stock Performs Against the Market;
StocksThat Are Holding Near 52-week highs
and Even Better, Break Out to New Highs
While the General Market Is In Correction
Mode, Are Likely To Become the Leaders of
the Next Rally
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31. In Good Markets, There Will Be Hundreds of
Stocks Hitting the 52-week High List Daily. You
Can’t Own Them All. How to Choose from such
Big Pool of Stocks?
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33. The St50 List
The purpose is to Improve the Odds of Finding the Next Big
winners.
It Saves Research Time By Ranking All Liquid Stocks by the
Criteria that Matters:
-Distance from 52-week high;
-Relative Strength;
-Earnings and Sales Growth; Acceleration in growth;
-Earnings Surprises;
-And Most Importantly – Setup score (based on Moving averages
ratios), which keeps us away from extended stocks.
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34. But There Is More to the St50 List –
Social Data
You Could See Which of the Strong
Momentum Stocks Are:
Least followed = no one pays attention to
them; there is no hype;
Least mentioned = undiscovered gems with a
lot more potential to appreciate;
Gaining social momentum.
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38. A Glass Half
Full
No matter what is
going on in the world,
there will always be
companies that will
manage to monetize
on an undergoing
social or business
trend. If you follow
the 52-week high list,
and better yet the
StockTwits 50 list,
you will know the
ones that are truly
ripe to be owned 38
42. Trend Following Is Not for the Faint
of Heart and Get Rich Quick
Dreamers
Anybody Can Buy A Stock, but You Also
Have to Hold It While It Rises In Order to Make
Money
Don’t Sell Until A Stock Gives You A Reason
And Yet, Conviction Without Discipline Is a
Recipe for Disaster…You Have To Stick To
Your Sell Rules, No Matter How Much You
Believe in the product/service
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45. Have An Exit Strategy
Some Trends Last Longer Than Others, But
Sooner or Later They all Come To An End
Everything Is For Sale At the Right Price
No Gain Is Really A Gain Until It is Booked
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46. 80/50 Rule
80% of All Big Stock Market Winners
Lose 50% of Their Move
50% of All Big Stock Market Winners
Love 80% of Their Move
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47. “I can calculate the motion of heavenly bodies, but
not the madness of people.”
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52. Why Trends End
No company can sustain high growth forever;
No company can sustain high expectations forever.
Anything priced for perfection eventually disappoints
Valuation Matters When Market’s Mood Shifts from
Complacency and Euphoria to Doom and Gloom
Wall Street is a tireless printing press; sophisticated
distribution and marketing machine. It is in the
business of printing stocks that are under demand by
the market
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53. Partial Profit Taking
Too Extended from Its Rising 200dma (40%+)
Reacts Poorly to “Good” News
Look for Sudden Increase in Short-Term
Volatility. It is often a sign of ownership
transfer – from strong to weak hands
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