Last week, I showed you that to beat the market, you need a stock to follow what I call the "FAR Principle." I need a fast move that is both aggressive and in the right direction.
One way to find FAR stocks is to look for an impending breakout in volatility, just like I showed you.
Now I want to show you another tool I use that's been at the heart of my trading for more than 20 years – short interest.
When you see why the number of bets that a stock will go down is a great indicator of when that stock will actually surge (and make you a ton of money in the process), it'll all make sense…
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.