Downside Risk AlertSignificant Event Indicator:
The Downside Risk Alert indicates an extremely high probability of the stock moving down over the next 20,40,60 trading days.
This alert is triggered when there is a negative spike in the sentiment over a 24 hour period relative to the average sentiment.
*Important Note – The Sentiment of the SPDR S&P500 (SPY) must ALWAYS be checked first. If the SPY indicates a Red 60 Day Downside Potential then the market usually drops in the following one to two weeks. In this case, regardless of the indicator showing a move up, it will move downward because of the market as a whole.
Example NFLX – on Aug 25th, 2014 NFLX generated multiple Downside Risk Alerts and their stock moved down significantly over the next 40 and 60 trading days.