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In the last few years alone, Luke has spotted emerging growth stocks before they were household names, yielding gains of over 1,000% on stocks like Advanced Micro Devices (AMD), Shopify (SHOP), Tesla (TSLA), and Nio (NIO)… and a 2,000% gain on Chegg (CHGG).
Luke’s success stems from his ability to pinpoint the next-generation storylines that lay the foundation of wealth, enabling him to target 10x returns through hypergrowth trends.
His connections with venture capitalists provide him with deep contacts, experience, and early insight into the biggest new moneymaking trends.
Moreover, this experience has granted Luke a profound understanding of how technology is revolutionizing the art of investing. And you too can learn how to invest in the rapid-fire world of hypergrowth megatrends.
While managing his trading services at InvestorPlace, Luke is actively exploring opportunities in the venture-capital and technology-startup world.
He currently collaborates with Fantastic, a venture-backed social discovery company employing Big Data and advanced machine-learning algorithms to connect consumers with new experiences.
And today, I want to share with you one of Luke’s boldest forecasts yet, absolutely free.
Keith Kaplan, CEO, TradeSmith
Another Rare Bullish Indicator Flashed
Editor’s Note: This story first appeared on InvestorPlace.com on April 17.
The stock market triggered a rare and powerful technical buy signal in April.
And it suggests, with 95% historical accuracy, that stocks are in the midst of a major breakout.
This bullish indicator is called the “Coppock Curve.”
It was developed by renowned market strategist Edwin Coppock in the 1960s to signal long-term stock market trends and, specifically, to identify when bear markets are turning into new bull markets.
At its heart, the Coppock Curve is a momentum oscillator. It uses math to measure medium- and long-term momentum trends in the stock market and tracks changes in those measurements.
When medium- and long-term momentum rises on a persistent basis, the Coppock Curve triggers a buy signal. When it falls on a persistent basis, the Coppock Curve triggers a sell signal.
As stated before, it was designed to identify major shifts in market trend — from positive to negative (sell signal) or negative to positive (buy signal). And in April, the Coppock Curve triggered a buy signal, on adjusted parameters.
The Historical Precedent Behind This Bullish Indicator
The same buy signal was triggered as stocks were coming out of the COVID-19 crash, the 2008 financial crisis, and the dot-com crash.
The Coppock Curve buy signal was essentially the “all-clear” sign in each of those major bear markets that the worst was over and better times were ahead.
This bullish indicator was also triggered and gave the “all-clear” at the end of the 1987, 1980-82, 1973-74, and 1968-70 bear markets.
Indeed, it has consistently signaled the end of bear markets.
It has also consistently signaled the start of new bull markets.
Going back to 1970, this specific Coppock buy signal has been triggered 19 different times. In 18 of those instances, stocks rallied over the next three, six, and 12 months. Average returns over the following 12 months were about 16%.
In other words, stocks have been consistently rising for so long now (about six months of steady gains) that history suggests this isn’t just a head fake.
Rather, it’s the start of a big stock market breakout.
The Final Word on This Bullish IndicatorRed-hot inflation has turned into significant disinflation. Every time that has happened in the past, stocks have rallied.
The Fed is likely to pause its rate-hike campaign within a few months. And similarly, every time that has happened in the past, stocks have rallied.
Meanwhile, the economy is stable, earnings have been pretty good, and valuations are normal.
The ingredients are there for a massive stock market rally into the end of 2023.
If that happens, then certain individual stocks will rally more than 100% into 2024.