Jesse Stine identifies potential winners by combining specific technical and fundamental "Super Laws":
: Traders should sell when the stock hits a pre-determined price target or when warning signs appear, such as massive insider selling, secondary offerings, or "message board euphoria".
: Stine often waits 2–3 weeks after an initial earnings breakout for a "low-risk" entry point as the initial hype wanes and volume dries up. Insider buy superstocks
: Look for a breakout above the 30-week moving average and respect for a "Magic Line" (often the 10-week or 50-day moving average).
: Ideally, "cluster buying" where multiple C-suite executives or directors make large, open-market purchases. : The stock should break out from a
: He prefers stocks priced between $4 and $15 with a low share float (ideally under 10 million shares) and small market capitalization (under $100 million). Strong Technical Setup :
The strategy is not about day trading; positions are typically held for a few weeks to a year. stable "base" period.
: The stock should break out from a long, stable "base" period.