It ran from 44 to 86 in 6 days — just shy of a 100% advance before pulling back to 50.60.
On January 5, SEER carved out a Lightning Rod (LROD signal) a Large Range Outside Up Day.
Range precedes price and I created the LROD strategy to signal a possible change in trend.
Following the LROD, SEER walked up to the prior pivot point, the horizontal line at 67 (point A).
Where it left a 180 buy setup.
In other words, SEER closed at/near session lows on January 11 but closed at/near session highs on January 12 — a 180.
More importantly, it left what I call a Cheetah buy setup or a Cheater entry.
Allow me to explain.
Most traders wait for a stock to breakout above a prior pivot high and clear well defined resistance before initiating a swing position.
However, for a stock to breakout, it has to clear prior swing pivots first.
So I came up with this idea of a “cheater” entry, an early entry above a prior pivot low.
These entries anticipate runs to prior highs… like a Cheetah leaping into a tree to catch its prey.
While many traders chase a new high, at Hit & Run, we’re feeding the ducks while they’re quacking at the new high and stalking our prey, observing the behavior to see if we get continuation or a reaction.
In sum, SEER was a long swing setup on the Nightly Hit & Run Stock Report with an entry trigger at 68.35 or an Opening Range Breakout (ORB).
SEER triggered right out of the gate, running to 75 quickly.
Hit & Run members sold half their position and have a protective trailing stop on the balance in keeping with our Trim & Trail, Hit & Run methodology.
But the key to the setup, what gave me confidence that SEER could explode, was my Square of 9 Wheel.
Let’s take a look.
From the 44 low, a 360 degree advance targets 74.
Consequently, follow through above the Cheetah pivot should see SEER leap to 74.
It did.
Now, clearing 74 projects to the next “square” up of 90 degrees, which is 82.
Interestingly, SEER’s closing all-time closing high was 81.11.
As Sir John Templeton, one of the greatest stock pickers in history wrote, “The fluctuation of share prices is roughly proportional to the square-root of the price.”
The Square of 9 Wheel measures price in a linear, logarithmic, natural progression versus a linear arbitrary fashion.
