The key to this strategy is buying blue chips during a selling climax or shake-out. This happens when retailers(weak holders) sell shares in a panic fashion to professional money(strong holders). The supply is absorbed by professional money through buying weakness. You would position 2X fold for each position and hold for one trading day. For a $100,000 account that means 1 positions of $200,000 exposure. The goal is to make 2.3% per day on 2X leverage.
Compounding Table
Criteria for scan(Using Yahoo Finance stock screener):
- $7.77 minimum share price
- 7,777,777 minimum trading volume
- Minimum $10B market cap
2 hours after NYSE open buy the stock that moves down the most with these 3 criteria.
Table YTD
Performance Chart on 1X and 2X YTD
