"Many investors make the mistake of buying high and selling low while the exact opposite is the right strategy to outperform over the long term."
-John Paulson
MAJOR REVERSALS
Crowd behavior is often expressed with panic selling and the majority shorting the 'low'. Fusion Algo searches for these extreme scenarios.
Semiconductors in 2019 was a great example of signals firing for a reversal just markets were starting to panic. Price rallied over 80% off the low over the following year.
"Be fearful when others are greedy and greedy when others are fearful."
-Warren Buffett
PRICE BOTTOM
Algo signals are also generated on individual stocks, where we often have additional information such as fundamentals.
Behaviorally markets often act first and think later which is what we saw with Facebook as it bottomed right under 130, with a PEG of around .5.
Price rallied 60% from the signal.
"The most dangerous thing is to buy something at the peak of it's popularity. At that point, all favorable facts and opinions are already factored into its price and no new buyers are left to emerge"
-Howard Marks
BUYING EXHAUSTION
Panic buying at the highs is essentially the opposite of panic selling seen at lows. Investors chase things that are moving higher with the hopes of making money and being part of the winning crowd. Fusion Algo also searches for these extremes.
Marijuana stocks were a great example of upside capitulation as everyone piled in at the top. Stocks fell over 50% following the signal.
Quantitative and Qualitative Approach
Combining computing power with human discretion and experience.
Quantitative: Run Data
Fusion Algo covers over 5000 stocks and related ETF's. The data is run an hour after the close and generates on average 200 signals a day.
The proprietary code seeks out combinations of market mis-positioning and excessive sentiment.
Qualitative: Analyze
Not all signals are equal, so discretion is the next filter on the approach.
Computer results are analyzed, going beyond signal generation and into secondary research approaches.
Report to Members
Fusion Algo members are provided charts and symbols that are generating important signals.
Lists/charts are provided at least weekly with emails when relevant opportunities arise.
Fusion Algo
$145/mo
Included
- Tutorials
- Buy/Sell Pressure general lists
- Email updates and additional videos
Start Trading Against the Crowd Today*
Immediately access the current research and lists. Generally speaking there are always longs and shorts at any given time, with some markets providing more opportunity than others.
At the end of the day human behavioral will always create mispricings and chase securities at the top and sell them at the bottom. Join today to get started.
*This is an intermediate level product
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