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Twenty-year market veteran Chris Johnson made his bones as a quantitative analyst (imagine a rocket scientist who worked with stocks instead of, you know, rockets), using proprietary mathematical models to bullseye "seismic" market anomalies with triple-digit upside potential – down to the minute.
He's showed us how it works with four profitable Money Morning trades and several appearances on CNBC and FOX Business. At the time, we mentioned you'd be hearing a lot more from him.
Well, he's taking his profit recommendations "big time" right now in our newest weekly VIP trading service, Seismic Profits Alert. This week's launch has been very successful, and his readers are already into their first trade, with at least three more quick-hit opportunities coming next week.
Of course he's got his hands full tracking stocks and updating his readers, but he made some time for us to catch up, get introduced to our Members, and give us a feel for how he looks at the markets and finds his biggest profits.
He showed us how he gets to a stock first to get the most money for his readers…
How to Find Truly Uncommon Gains – Fast
Greg Madison: Thanks for taking the time to talk to us!
Chris Johnson: Good to talk to you.
GM: I know you're a busy guy, so let's jump right in. There's maybe 4,500 stocks trading up and down on the U.S. market every day. You've got your huge gainers, big decliners, flat-liners, heavy volume, thinly traded companies – a huge variety, in other words. What do you like to see before you make a move?
CJ: Great question! Every trader has a "dream setup." In other words, that situation where everything is just lining up perfectly and you simply must take advantage of the situation. For instance, I can't turn my back on a stock that has all the signs that the market is either a) ignoring its performance, or b) has yet to discover that the stock is actually leaving the market behind.
GM: Sounds kind of like a contrarian approach to me…
CJ: Well, a lot of people would say this approach is a contrarian one, you know, betting against the market.
But it's deceptively simple; there's a lot more to it than that. I sometimes refer to it as "Counterintuitive Contrarianism." What I mean by that is that I'm interested in having a contrarian view on a stock only when I can see the Street's view on that stock doesn't make sense.
GM: For example?
CJ: Say a stock has outperformed the market for the last year – I mean like doubled the S&P 500's performance. And at the same time, the technical and fundamental indicators are bullish: The company is growing earnings and revenue… there's no funny business with the books… and the technical charts are just the textbook definition of "bullish."
As part of a proprietary system I've developed over the years, I monitor indicators that track things like… how many shares have been sold short to bet against the stock… whether the analyst community thinks that the stock is a "Buy," "Sell," or "Hold"… or even whether the options traders are betting against the stock.
So, when my system uncovers a stock that has been "knocking the leather off the ball" and my indicators tell me that the Street "crowd" has yet to pile into it? That's the perfect setup. You can get into stock before, or just as, the rest of the market is waking up and putting their money into it.
But the short answer is: I like to see a strong technical and fundamental stock that the rest of the Street has yet to pick up on. The diamond in the rough.