How We Predicted One of the Biggest Stock Moves in History

It happened right in front of you. Did you take advantage of it?

Tuesday evening, Apple Inc. (NASDAQ:AAPL) reported earnings for its fiscal third quarter. The numbers were solid, but the price reaction was off the charts.

Apple opened trading about 6% higher on Wednesday. That’s a huge gap higher for a massive stock like Apple. The move added about $40 billion in market capitalization to the giant tech company overnight. In fact, it was one of the biggest stock moves in history based on the amount of value created.

And you had a sneak preview right here in these pages…


Back on June 15, our in-house quant, Jonas Elmerraji, shared a buy signal that was triggering in Apple based on the proprietary indicator he’d developed. Simply put, Jonas’ indicator is designed to pick out tail winds in the market and in individual stocks.

He calls these “Kinetic” moves.

The indicator Jonas developed identifies when a ticker symbol is statistically most likely to be in motion — thus the “Kinetic” part of the name.

Here’s the chart he shared with us back in June:


In this chart, the first “Kinetic Window” hit between January 27 and May 27. That was the first timeframe when the wind was at Apple’s back and shares were most likely to move higher.

That set the stage for the 26% rally sparked at the very beginning of the year.

The Kinetic Window did a picture-perfect job of capturing the up-move in Apple. And it got traders out right before shares started to roll over.

Before I reveal any more details, you should know that the window on the chart above wasn’t picked with the benefit of hindsight. Jonas’ algorithm generated that chart a full year before it happened.

And Apple’s second Kinetic Window was ready to trigger when Jonas sent you the buy alert in June.

I’ll show you the chart in a second. First, you need to know what causes a Kinetic Window to show up on a chart in the first place.

Jonas’ algorithm looks at the long-term price action for a stock and processes it into a single proprietary indicator that the computer analyzes for important trends.

When you slap that indicator on a price chart, it forms a “K” shape.

Because of that, Jonas calls it the K-Sign indicator.

Have a look for yourself:


The “buy” sign always looks like a letter K that’s been tipped over on its back… that’s the start of the Kinetic Window.

While the “sell” sign always looks like a K that’s fallen forward. That’s the end of the Kinetic Window.

You can spot them on the example chart above.

Working together, these two K-Signs form the beginning and end of every Kinetic Window. They’re a tell-tale sign that a stock is about to kick off a tailwind — and you’re one of the first people on the planet to learn about them.

Going back to our Apple example, here’s how the second window has played out since we told you about it:

The K-Sign indicator practically nailed the bottom of Apple’s correction at the start of the summer – and it got you back in at the perfect time for the next rally. If you took the signal, you’re already sitting on open gains approaching double-digits.

That includes $40 billion earnings-driven pop at the start of the week. The size of that pop had everything to do with the fact that Apple was smack-dab in the middle of a Kinetic Window when it happened.

It looks like Apple could have more upside left ahead of it this year – it sports one of the longer Kinetic Windows I’ve seen.

Of course, not all Kinetic Windows are so long.

But when Jonas’ computer spots a K-Sign, we know we have a statistical advantage.

As I mentioned a moment ago, one of the most unique things about Jonas’ algorithm is that the computer can spot K-Signs up to a year before they trigger. In fact, Jonas has quietly shared with me a busy month of buy signals lined up for August.

To get more details on exactly how this unique strategy works – and to find out how you can get the next K-Sign for yourself – click here to watch my presentation.

And enjoy those gains on our Apple trade. I’ll be sure to thank Jonas for the tip next time we meet…


Greg Guenthner
for The Daily Reckoning

The Daily Reckoning