Upside MomentumSignificant Event Indicator:
The Upside Momentum Alert indicates an extremely high probability of the stock moving up or down with a minimum + or – 3% gain over the next 20,40,60 trading days.
This alert is comprised of chatter velocity and chatter volume. When a significant event occurs it is identified by a rapid and quick acceleration in chatter indicating a major event is taking place or about to take place.
*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 PEIX – on Oct. 27th closed at $11.26 per share. On the graph below we can see that chatter volume doubled over the next two days. On Oct. 29th, PEIX generated two 60day upside potential alerts resulting in an 11% gain in 24hours.