Ross's Top 5 s, ealth Trade Opportunities

- or Massive Gains.
 UNLOCKING THE STEALTH TRADE FORMULA

HOW I PINPOINT UNDER-THE-RADAR STOCKS FOR SURGING RETURNS!

Stealth fighter jets are not the deadliest machines in the sky because they look cool. Their
effectiveness lies in their ability to operate covertly; to carry out a mission without being detected
by radar.

The same holds true for my Stealth Trades.

With rare exceptions, household names like Google, Amazon and Apple can no longer deliver huge

gains. Short-term moves of 100% or more are simply not feasible from large, mega-cap stocks.

Too many investors are trading them.

And too many people are watching them.

Smaller, lesser-known stocks, on the other hand, still deliver the goods.

My proprietary system identifies stocks with proven markers that have led to the largest gains in

the past. The stocks are generally small. But the profits can be enormous.

STEALTH SYSTEM

Too many folks focus on the wrong things when researching stocks. They have been trained to
follow the gurus of old including Benjamin Graham and his disciple, Warren Buffett.

The idea that an individual – even a professional – can dissect the internal business value of a
company and in turn discover a stock that will eventually be discovered by the broad market and
bid up just doesn’t work anymore.

Value investing might help you eke out an 8 or 10% annual return, but it will not lead to super
performance.

Now, Warren Buffett saw great success in his day. But even he has recognized that his skillset is
no longer suited for today’s market.

Some years ago, even while staying at the helm of Berkshire Hathaway (BRK/A) he set aside
capital for two much younger fellows that he called his young guns.

It was these young guns that bought many stocks that were embedded into Berkshire’s balance
sheet that later would be the savior of the company – but only so much as they were only given
spare change from Warren to work with.

Apple (AAPL) was one of those stocks.

But if it weren’t for Apple (which now makes up a whopping 40% of the company’s entire portfolio)
the Berkshire might be in even more jeopardy than it is right now

Buffett’s key valuation metric has been the underlying book value of Berkshire against the S&P 500
Index. The book value takes the portfolio of the company that really is just a closed-end
investment fund. As you can see below, it has been lagging the S&P 500 Index for several decades.
 Berkshire Hathaway Book Value and S&P 500 Index (Normalized) Source Bloomberg

Buffett’s underperformance is also noticeable in the actual return comparison of Berkshire shares
against the S&P 500 Index.

Berkshire Hathaway & S&P 500 Index Total Return Source Bloomberg

The S&P 500 Index is the baseline for investments. And if you are going to be a star investor – you
need to really hit it out of the park when compared against that baseline. Just hitting singles or a
double now and again won’t cut it.

And Berkshire and Buffett just haven’t been cutting it.

Now, don’t get me wrong - I’m not trying to take anything away from the Oracle of Omaha.

A lifetime of investing success has cemented his place as one of the greatest stock pickers who

ever lived. But this is not your father’s stock market.

Deep value research like Warren and the Berkshire team spends countless hours conducting will do
little to improve the returns in your portfolio.

It might identify stocks that should go up… but not those that will and are going up.

My goal in writing this report is to offer you a different approach.

The bones of this methodology have been used by stock trading champions who boast consistent
triple-digit annual performance.
Perhaps even more importantly, this strategy is timeless.

It worked 50 years ago, it works today, and it will continue to work years into the future. Because unlike
other fad styles and flashy new indicators, my Stealth Trade System is based on an unavoidable force –
the law of supply and demand.

STEALTH ANALYSIS

My analysis is not about finding deep value.

Because I’m a big believer that buy and hold investing is dead.

Hoping and praying for a stock to go higher is not a recipe for success.

How many times have you bought a stock that has gone nowhere or worse – dropped in price?

I’ve done it hundreds of times.

The mistake is not in selecting the wrong stock.

The mistake is continuing to hold the stock and hoping the market will bail you out.

This doesn’t work.

Small losses turn into big losses. Swing trades turn into long-term positions. And before you know
it, your once-respectable brokerage account has been ground down to parking meter money.

When a stock turns south or fails to advance in a reasonable amount of time, the smartest move
is to cut the trade, take a small loss, and look for the next opportunity.

The longer you hold and hope, the longer your money is dead in the water.

And the larger your losses can become.

Your time is valuable. And unless you inherited a fortune from an estranged uncle, your money is
precious, too. It was hard to earn and even harder to save.

The last thing you want to do is throw it away on a crummy stock that isn’t delivering the goods.

Your job is to produce decent gains and keep losses small. That’s it. That’s the formula.

Even if you’re only right half of the time, if you make 10% when you’re right and only lose 5% when
you’re wrong, you can amass unthinkable wealth.

The stock market is a compounding machine. If you made just 2 trades over the course of the
year (a 10% winner and a 5% loser) your net return would be +4.5%.

But if you made 40 trades in a year with the same metrics (half 10% winners and half 5% losers)
your net return would be +141%.

Same batting average. Same average gain. Same average loss.

Wildly different results.

That’s the power of compounding.

And that system feeds off a few proprietary indicators I rely on to pinpoint a stock surge at the
crucial points where the magic happens.

And these trades can happen incredibly fast.

If you aren’t paying careful attention, your big opportunity will have come and gone before you
even heard it knock.

This is a stealth system that the big-time investors and traders are unable to replicate. They are
handicapped by their size.

In fact, if you are trading more than $10 million, you may find it impossible to tackle every trade I
identify.
With my approach, retail traders like us actually have the advantage. We can get in and out of
small and medium-sized stocks in seconds.

By contrast, Warren Buffett spent months building his position in Apple (AAPL) – one of the most
liquid stocks on the exchange.

My Stealth Trades system uncovers surge stocks that can deliver quick, outsized gains for my
students.

And it’s only fair to warn you - these surge stocks can be way under the radar. Don’t be surprised if
you’ve never heard of most of them.

But don’t let that deter you from jumping in and riding the surge to peak profits.

A BLUE SKY EXAMPLE

Take for example a stock that triggered a few of my indicators - BlueLinx Holdings (BXC).

BlueLinx is in the building supplies business. With the housing boom underway, the company was
in the right place at the right time. Customers were banging on its doors for more of its stuff and
were willing to pay anything to get them.

I didn’t see the stock on the buy lists of any of the major investment banks.

Heck, I don’t even know of one that covers the stock!

But I found it… thanks to my Stealth Trade System.

Company sales were surging. And I mean surging through the roof.

BlueLinx Revenue Growth Source Bloomberg

Revenue growth was over 54% and set to climb even higher.

Then, the trading volume started to surge too, higher than its daily average by almost a factor of three .

When I see that volume spike, I know that investors are catching on. The stealth period was ending, and the
stock surge was now in play.

BlueLinx Trading Volume Source Bloomberg

Company insiders were buying too. Top executives including the senior vice president, CFO and
in-the-know board members were picking up more and more shares.

Insiders know the books. They know their customers and suppliers. And they know what the
company is really worth.

No analyst knows what insiders know.

So, when they are putting down their own money to buy their own stock in their own account –
that gets my attention.

That’s why I mentioned it to my students as the surge was setting up.

BlueLinx Insider Trades Source Bloomberg

So… what happened? How did BlueLinx do?

Really well.

The stock generated a 44.14% return in just a few weeks from just late April to early May. This,
while the S&P 500 Index and value stocks barely budged.

BlueLinx Total Return Source Bloomberg

So… what happened? How did BlueLinx do?

Really well.

The stock generated a 44.14% return in just a few weeks from just late April to early May. This,
while the S&P 500 Index and value stocks barely budged.

BlueLinx Total Return Source Bloomberg

And guess what?

BlueLinx performed without a single talking head on television touting it.

Cramer and the boys at CNBC didn’t mention it. Not once.

I doubt they even know it exists.

And it wasn’t found in the Wall Street Journal or other major financial media. No one was paying attention
in the mainstream markets – just insiders and me. And of course, my students. A true stealth trade
and a great surge stock!
THE STEALTH TRADE INDICATORS

The real power behind the Stealth Trade system are the indicators I use to identify surging stocks
before they make their breakout.

And while they are incredibly powerful, I keep these indicators super simple.
Simple works. Don’t underestimate simplicity.

Complex financial models and supercomputer algorithms are behind almost every major loss on Wall Street.

But you know what I’ve never heard of? A billion-dollar loss blamed on the system being too simple.

I start with something we all know - Isaac Newton’s first law : a body in motion tends to stay in motion.

I know that stocks going up tend to keep going up. That’s the power of inertia.

I also know that stocks going down tend to keep going down. That’s why I avoid them like the plague.

Don’t buy stocks off a new low. Odds are, they’re about to make another one.

I want to trade with the trend. My SSI looks for stocks that are going up over the short, medium and
longer term. And not just up by a little.

I’m looking for the real movers and shakers.

The stock should also be going up for a reason. Don’t buy a dog stock like Kodak just because they
announced plans to develop a cryptocurrency.

It went up for a day. Then it came crashing down.

Why? Because investors realized the stock is garbage. The fundamentals are terrible. It was a one-day
news pop that did nothing but transfer money from the uneducated to the disciplined.

Finally, I look for stocks that are outperforming their peers. If I’m going to buy a semiconductor stock, I
want the BEST semiconductor stock. The one growing sales the fastest. The one with improving
margins and surging profits.

You’ll never make above average profits investing in below average merchandise. Buy the best. Buy
market leaders.

Avoid cheap, “undervalued” stocks. They’re cheap for a reason. Leave them alone.

My Stealth Trades system follows a 2-part strategy. First, I scan for 5 distinct criteria to produce a
short list of high-quality stocks. These are the best of the best – stocks with strong fundamentals in a
defined trend higher.

I like to think of this as fishing from a stocked pond. Some may not work out, but my odds are
drastically improved by first filtering for the best candidates.

These 5 criteria make up the proprietary indicators I use to identify stealth trades that are ripe for the
picking.
INDICATOR # 1: TRIPLE MOMENTUM OVER SHORT, MEDIUM & LONG TIME FRAMES

I look at trading and the moving average price for stocks. I like to see a stock trading above its
50-day moving average. For a proper trend to be in place, the 50-day average should also be
above its 100-day moving average and both of those above the 200-day.

I need to see all of these averages “stacked” in that order and trending higher.

Take Blackstone Group (BX) as an example.

Blackstone Group is the legendary investment company that operates hedge funds, private equity and
really high-end credit market investments. It is one of the masters that has generated plenty of stellar
traders and investors that have gone on to become legends in their own right. They include the founding
capital of Pete Peterson that led to BlackRock (BLK) that became the largest investment manager in the
world.

Blackstone Source Bloomberg

And the stock demonstrates a stock that is above its short, intermediate, and longer-term
averages of 50, 100 and 200-day prices.

Blackstone’s stock has been trading up and up over the past year. It has returned 63.74% during
this time which, given its colossal size, is a feat of its own. Not to mention far better than the
benchmark S&P 500 index.

Blackstone Total Return Source Bloomberg

With triple momentum all pointing higher, I know that the stock is working and “in play.”

INDICATOR # 2: STOCK PRICE AT LEAST 30% ABOVE ITS 52-WEEK LOW

I don’t buy stocks trending lower. If this is something you make a habit of, I would strongly
encourage you to stop. The goal is to identify stocks that can go up a lot and do so quickly. I also
want to see that shares are trading nowhere near their lows and are firmly trending higher.

For these reasons, my Stealth Trade system pulls only stocks that are at least 30% above their 52-
week low.

Target Corporation (TGT) will serve as a great example for this.

Target is the ubiquitous discount retailer that is found throughout the US. It was one of the first to
bring not just cheap prices – but products that appeal to all demographic and income groups.
Unlike Walmart
(WMT) – Target isn’t just viewed as a cheap place to shop – but a good place to shop with cheaper
prices.

Target’s stock has returned 93.10% over the past year alone. That’s nearly three times the return of
the general S&P 500 Index.

Target Total Return Source Bloomberg

Value investors and those looking for stocks “on sale” were buying waiting for a pullback. But that
was foolish. Once Target proved its intentions by advancing 30% from its 52-week low, it was
time to buy.

Don’t worry about trying to buy at the lowest possible price. Remember, your job is to make quick
returns and compound your money. Even after a 30% climb, there was still plenty of meat left on
the bone for a nice win.

Target Stock Price (52 Week Low Price: 116.90) Source Bloomberg
INDICATOR # 3: SALES GROWING BY AT LEAST 25%

Stocks need to be going up for a reason. Although I do not buy based on fundamentals alone,
double and triple-digit growth in sales and/or profits can be found in almost every great stock
surge for the last several decades.

Believe it or not, Eastman Kodak (KODK) was once a market leading stock. But not today. Today it’s
a dog. Shares have gone nowhere but down for most of the last decade.

By 2020, Kodak stock traded below $2 a share.

.
This “what the **$%^?” announcement sent shares soaring by 2,690% in a single week.

But the move was short-lived. Retail investors made the mistake of haphazardly buying an
unprofitable dumpster fire of a company.
A month later, shares had fallen 90.5% from the high

Eastman Kodak Price Surge Source Bloomberg

Some folks were lucky enough to book a big profit and get out quickly. But far more suffered
crippling losses. Investors would be better suited focusing their efforts on quality companies
with sustaining reasons for their stock to surge (...for more than one day).

Sales and profits are both important. But many promising new firms, especially those in the
pharmaceutical and biotech space, have no profits to judge. So I like to focus on sales –
growing sales. Companies that are selling more and more stuff and increasing their market
share. This is what makes stocks surge for several months to several years.

Cowen Incorporated (COWN) is a specialty brokerage and financial company. It has some of the
best on Wall Street when it comes to trading for institutional customers and also has a crack
investment management team.

Personally, I don’t much care what they do as a business – as long as they do it well. The clue to
that is surging sales, and that’s what caught my attention with Cowen.
 Cowen Revenue Growth Source Bloomberg

Cowen is really hitting it out of the park right now. Its recent quarter saw its sales surge by
284.56% and that follows prior quarters with stellar sales gains.

Cowen Total Return Source Bloomberg

This gives Cowen a real reason for surging. The stock has returned 49.29% so far this year and
there may well be a lot more on the table to follow.

INDICATOR # 4: A STOCK SURGE SCORE ABOVE 75

When it comes to my Stealth Trade system, the fourth indicator is one of the cornerstones.

To find the best of anything, it must be ranked against its peers.

And stocks are no different.

We want to hold names that are not only performing well but outpacing other investment

alternatives.

In other words, we don’t just want good stocks… We want the best stocks.

I use a proprietary Stock Surge indicator that measures each stock’s price performance over a
twelve-month period compared to thousands of other stocks in the database.
Performance is weighted across short, medium, and long-term time frames with additional weight
given to the most recent 12-week period. Each stock is assigned a surge score ranging from 1 to
99 (99 being the highest) to reflect its relative price strength compared to its peers.

A surge score of 75 means the stock has outperformed 75% of all other stocks in the database. In
other words, it is in the top quartile of price performance.

INDICATOR # 5: MONEY FLOW READING ABOVE 50

I bet you already caught on to this, but when it came to BlueLinx and its surging stock – it
came with surging volume that was heavy and well above its average.

But my set of five indicators takes this volume measurement a few steps further with my custom
money flow indicator (MFI). It produces a volume weighted relative strength rating which gives
extra weight to the trading size behind large price movements.

I want my MFI to show at least a level above 50 for a stock to make my cut as a surge stock to
buy. This tells me the stock is not only trending higher, but money is flowing into those up moves
in greater volume than on the fluctuations lower.

Here’s my stealth secret MFI calculation:

I recently alerted my subscribers to a breakout in RCI Hospitality (RICK).

The stock is coming off a 659% move in just one year. The MFI reading above 50.0 was the signal
that money was flowing into this stock on the buy side. Once the other indicators lined up, the
signal was clear.

The MFI held above 50 for the duration of the move – an indication that big money was still
pouring into the stock.

In other words – it has the goods to go for a surge stock.

IDENTIFYING SURGE BREAKOUTS

Once I’ve put together a shopping list of stealthy surge stocks, the real work can begin. This is
when I manually review the chart and numbers for each candidate on my list.

It is important to be precise with your entry point.

What we are looking for is a low-risk place to buy the stock, just as it begins a breakout to new

highs. Risk is paramount. So it is of the utmost importance to identify turning points where one

can achieve a very low risk/reward ratio.

Here’s how it played out…

STEP 1:

The stock traded in a range-bound “acceptance area” with decreasing volatility (shallower and
shallower dips):

Mind Medicine Source Trading ViewWe are going to walk through the breakout pattern step-by-
step. And I’ll use one of my surge stocks that showcases the steps in textbook detail.

This is a trade I took in my personal account.

The stock is Mind Medicine (MNMD) – a small Canadian pharmaceutical firm specializing in
psychedelic treatments for mental disorders.

This shows me that shares are being transferred from weak hands to strong hands. It is being
accumulated by institutions eyeing a large move over the coming quarters or years.

You can also see a clear resistance level near the $0.40 mark. This is the upper level of its
trading range.

STEP 2:

The stock breaks out of this range AND closes above the $0.40 upper resistance level.

Again, here is how it worked with Mind Medicine:

 Mind Medicine Source TradingView

These are daily candles. The red arrow highlights the day the stock broke out and the exact area
you want to buy the stock – right as it breaks out of the previous range.

STEP 3:

I like to see the breakout occur on very high volume. Breakout days with 5 or 10 times the stock's
average daily volume have the greatest chance of making a significant move higher in a short
time.

Note the big uptick in volume on the chart of Mind Medicine:

Mind Medicine Source Trading View

THE RESULT:

Mind Medicine surged and surged big.

The stock climbed 1,144% to its peak in just 3 months following the

breakout.

Mind Medicine Source TradingView

I bought half my position at $0.57 and then doubled down at $0.70 the next day after seeing follow
through in both price action and volume. I sold into strength in chunks on the way up, selling my
final shares for
$4.72.

Obviously, not all breakouts will yield wins of the same magnitude. Most will return less. Some will
return even more.

The most important thing is to keep your losses small. It sounds cliché. I know. But cliches are
cliches because they are true. Focus on risk first and big gains will come. Even if your win rate is
low, you need an occasional win like MindMed to achieve fantastic results.

Ross Givens
Editor, Stock Surge Daily
 WHO IS ROSS
GIVENS?
Ross Givens got the trading bug at an
early age. He traded his first stock at 12
years old buying 100 shares of
Microsoft. After earning a degree in
Finance, he quickly learned the ins and
outs of the investment

He even served as a Vice President for a major investment bank and held Series 7, Series
66 and Series 3 securities licenses.

Ross has a simple investment philosophy – follow the money.

He has dedicated years to studying volume patterns that reveal pending moves in
under-the-radar stocks.

Ross is also the leading expert on insider trading. His proprietary system follows the
buying and selling of corporate insiders to identify high-probability investment
opportunities.

He has been featured on Fox Business, CNBC, Bloomberg and several other major
financial networks.

To check out these interviews or to get subscribed to his daily newsletter, Stock Surge
Daily, just visit: www.stocksurgedaily.com.
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