Mastering

the Market
POWERING YOUR PORTFOLIO WITH MARKETSURGE
 TABLE OF CONTENTS
Using MarketSurge

Charts
Charts Overview..................................................................................................................... 4
Stock Ideas................................................................................................................................. 5
Pattern Recognition............................................................................................................ 6
Using Pattern Recognition............................................................................................7
Alerts................................................................................................................................................ 8
Chart Legend............................................................................................................................. 9
Related Information Panel.......................................................................................... 10

List Panel
List Panel Overview..............................................................................................................11
Creating Lists......................................................................................................................... 12
Customizing Your View.................................................................................................. 13
Reports......................................................................................................................................... 14
MarketSurge Growth 250 Report........................................................................... 15
MarketSurge Growth 250 Report and Pattern Recognition............ 16
197 Industry Groups...........................................................................................................17

Stock & Fund Screener

Screens, Alerts and Notes........................................................................................... 18
Screener Overview.............................................................................................................. 19
Customizing the Screener.........................................................................................20

Support Resources
Education and Support................................................................................................. 21

Applying MarketSurge

Chapter 1: Identify Winning Stocks................................................................23

Chapter 2: Develop a Routine................................................................................34
 Using
MarketSurge
Using MarketSurge: Charts Charts Overview

Charts Overview
MarketSurge provides daily, weekly, monthly and intraday stock charts that display both
fundamental and technical data. To pull up a specific chart, type in the symbol of the stock, mutual
fund, industry group or index in the top left corner box and press enter.

Toggle between daily, weekly,

monthly and intraday charts. The Tool icon opens a drop-
down box for personalizing
your MarketSurge experience.

Change the chart date to view

Enter the ticker historical charts dating back to 1971. Click the Alerts icon to
symbol here. manage, view and set alerts.

Relative Strength Line

Insider Buy/Sell Transactions

Fundamental Data

Page 4
 Stock Ideas

Stock Ideas

Charts
MarketSurge makes it easy to find better investment ideas. Clicking or tapping on the “Open Stock
Ideas” button at the top of the screen will open a window that gives you a multitude of ways to find
top stocks.

Here you’ll find premium curated lists like Growth 250 and RS Line Blue Dot, as well as constantly-
refreshed lists like Breaking Out Today and Near Pivot. In addition, you’ll find screens that filter
through stocks as well as quick links to the latest MarketSurge market analysis and webinars hosted
by our Product Coaches.

Enable real-time reference data

Open Stock Ideas

Nasdaq Last Sale: Real-time Prices

Real-time pricing data provided by NASDAQ Last Sale is free with your MarketSurge subscription.
When this feature is activated, the NASDAQ Last Sale data indicator will be green. To turn the feature
on or off, click the settings menu in the top right corner.

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Using MarketSurge: Charts Pattern Recognition

Pattern Recognition
Our proprietary Pattern Recognition will display base patterns on both daily and weekly charts. It is
designed to help you identify some of the more common patterns, such as the Cup with Handle and
Flat Base. To turn on Pattern Recognition, click the icon in the upper right corner of chart.

Pattern Recognition button

Profit-Taking Zone: 20-25% above Pivot

Buy Zone: 0-5% from Pivot (dotted line)

Loss-Cutting Zone: 5-8% below Pivot

Page 6
 Using Pattern Recognition

Using Pattern Recognition

Charts
VIEWING BASE PATTERN PROPERTIES
Pattern Recognition includes base properties in a hover box to help you
effectively analyze the quality of a base. To view the hover box, place your
cursor on the base pattern.

BASE PATTERN TYPE

Available base patterns: Cup, Cup with Handle, Saucer, Saucer with Handle,
Double Bottom, Flat Base, Ascending Base, Consolidation and IPO Base.

STAGE
It is important to know a stock’s position in relation to the number of bases
it has formed. Stages begin at one and increase with each subsequent base
pattern formed. Stocks emerging from third, fourth, or later-stage bases are
late in their moves and may be more likely to fail. Breakouts from first- and
second-stage bases generally have a higher probability of success.

The magnitude of the move between two base patterns will determine whether the stage moves numerically or
alphabetically. If the price move from the pivot point of the prior base to the left side high of the current base
is 20% or more, the stage will increase by a factor of 1—for example, from Stage 1 to Stage 2. If the price move is
less than 20%, the stage will increase by an alphabetic factor—Stage 1a to Stage 1b.

COUNT
The Count is the number displayed in ( ) to the right of the Stage. Count
begins at 1 and increases numerically with each new base pattern,
regardless of the magnitude. It is the raw count of the number of bases
since the last reset. At this time, the Pattern Recognition software does
not take into account bear or bull markets when counting bases.

Note: IPO Bases do not display either Stage or Count, as neither is applicable for
that particular pattern.

PIVOT
The Pivot is indicated for each base—this value corresponds to the dashed Pivot Line. The raw value is marked
without any additional amount added (e.g., 10 cents).

The Pivot of a base corresponds to a previous area of resistance. In the case of a Cup (or Saucer) with Handle,
it corresponds to the peak price of the handle. In the case of a Double Bottom, the Pivot corresponds to the
top of the middle peak of the W shape. In the case of a Cup, Flat Base, Consolidation or IPO Base, the Pivot
corresponds to the Left Side High where the base began. A stock that breaks above this level of resistance may
be poised to move higher.

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Using MarketSurge: Charts Alerts

Alerts
Our Alert feature will allow you to stay on top of any stocks without having to watch the screen all day.
There are a few types of alerts you can set. The basic price alert will trigger if the stock reaches the
pre-set price you have identified, whether it is above or below the current price.

Trendline alerts are also available. By drawing a trend line with your temporary line pen, the
MarketSurge tool will alert you when the stock price breaches that trend—it’ll extend out and “follow”
the stock so you do not have to worry about adjusting it later on.

Lastly, you can set alerts using the Pattern Recognition algorithm. If a stock breaks out of a base, the
alert will trigger based on the pivot price of the base.

You can have alerts sent to your email—they will also trigger whether or not you have MarketSurge
open.

Triggered Alerts indicator

Manage Alerts

Page 8
 Chart Legend

Chart Legend

Charts
Find the definition of each of the components of the daily, weekly and monthly charts by accessing
the Chart Legend at the bottom left corner of the stock chart or by selecting the Chart Legend from
the Chart Tools ( ) drop-down menu.

Chart Legend

Hover over any feature Feature description appears here

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Using MarketSurge: Charts Related Information Panel

Related Information Panel

Related Information for each stock, fund or index appears on the sliding panel to the right of each
chart. Open the panel for a stock to reveal in-depth information, including a stock’s institutional
ownership, industry and sector, news and technical data. MarketSurge also provides a Checklist to
see how your stock measures up to the trading strategies of investing legends like William J. O’Neil,
Warren Buffett and Peter Lynch.

Move between buttons

for in-depth analysis

Click the Related Information tab

to hide or expand the window.
Help Menu

View all stocks in

Industry Group or Sector

Page 10
 Using MarketSurge: List Panel List Panel Overview

List Panel Overview

The MarketSurge List Panel serves as an area to organize and manage your investment research.
Here you can create new lists or view and edit saved lists. You can also access proprietary
MarketSurge preset lists in the Reports and Markets/197 Industry Groups folders to generate new

List Panel
stock ideas.

The lists are categorized by

folder. Find pre-set lists under
Reports and Markets/197 Play a stock or fund list as a slideshow.
Industry Groups. Control the interval speed from the
pull‑down menu ( ) to the right.

Double-click on any stock Use List Panel Tools to customize column

to pull up the chart view. headings, print and export lists.

The List Panel features column headings

which can be expanded or contracted.
Drag and drop columns to reorganize.

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 Using MarketSurge: List Panel Creating Lists

Creating Lists
The innovative list design in MarketSuge allows you to collect and organize ideas as you conduct your
research. To create a new list, start by selecting the New button in the List Manager. A new list will
appear at the bottom of the My Lists expanded view, called Untitled List—click the box to enter a name
for the new list. Add stocks to your new list by dragging single or multiple rows of stocks, funds or
Industry Groups from other lists in the List Manager.

Click New > List to create and name

a new list in the List Manager.
Use the Add to List button to add the
stock chart you are viewing to a list.

Click here to find

import, export and print
stock lists options.
Add new stocks to your list by
dragging and dropping symbols
from reports and screen results, or
typing symbols directly into the cell.

Page 12
 Customizing Your View

Customizing Your View

With the list management functions in MarketSurge, you can choose from over 200 available data
points and customize the information displayed on your lists.

List Panel
Customize the layout of your list
display by selecting the Custom
Column Layout option from the
List Tools ( ) menu.

Select a category, then click

and drag the specific criterion
to the column layout preview.

Save and name your layout, then Click any title header to sort
apply the changes to your current list. the list by that category.

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Using MarketSurge: List Panel Reports

Reports
MarketSurge Reports run preset screens against our database to create specialized lists for stocks,
mutual funds and industry groups. From these lists, you can filter stocks or funds based on your
specific performance criteria.

Select a Report from Report contents are displayed to the right.

Stocks, Industry Groups or Click on any list item to launch its chart.
Mutual Funds sub folders.

Click the icons to adjust

the List Panel view.

The proprietary 197 Industry

Groups can be accessed here,
along with market indices such as
the DJIA and S&P 500.

Page 14
 MarketSurge Growth 250 Report

MarketSurge Growth 250 Report

The MarketSurge Growth 250 Report is a premium report created by professional portfolio
managers. Generated through a highly complex screening process, the weekly list identifies stocks

List Panel
poised for significant growth. It saves you time by pre-scanning our database and providing the
best potential names week-to-week. The list will fluctuate between 100 and 300 names (based on
market action) but will typically contain around 250 ideas.

Click for MarketSurge Growth 250 report

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 Using MarketSurge: List Panel MarketSurge Growth 250 Report and Pattern Recognition

MarketSurge Growth 250 Report and Pattern Recognition

The combination of the Growth 250 and Pattern Recognition will allow you to view stocks that are
currently building bases or are breaking out of bases. There are sub folders under the Growth 250 like
Breaking Out Today and Near Pivot which are related to the Pattern Recognition algorithm. The alerts
feature will even let you see the “Breaking Out Today” stocks as they occur in real time. You can also
access Growth 250 via the “Open Stock Ideas” button.

l Breaking Out Today is a list of all the stocks breaking out today.
l Recent Breakouts are stocks that have broken out in the past 15 days.
l Near Pivot is a list of all the stocks approaching a pivot—when stocks that break above that level of
resistance are often poised to break out.
l Tight Areas is a list of stocks showing tight areas, which can serve as alternate entry points.
l Power from Pivot lists all the stocks advancing 20% or more in price within 15 days (3 weeks) of reaching the
pivot point.
l RS Line Blue Dot features stocks that are either building a base or breaking out of a base while hitting a new
52-week high with their Relative Strength line.

Access G250 - Pattern Recognition reports

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 197 Industry Groups

197 Industry Groups

Stocks don’t exist in a vacuum. A well-run company might seem like a smart investment, but if it’s
in a lagging industry group, that company will be fighting an uphill battle to succeed. That’s why

List Panel
MarketSurge includes 197 specialized groups to categorize stocks according to industry. Studies
have shown that roughly one-third of a stock’s move can be related to its industry group. It is key to
identify which industries have the most potential to benefit in the next bull market.

Find top stocks within the best-performing industries by sorting Industry Groups based on their
current rankings. After you’ve selected an Industry Group, you’ll see the stocks in that category
displayed in the Related Information panel on the right. Selecting the “Top Stocks” button from
the RI panel will give you a list of the top five stocks in the group, along with RS and EPS Ratings.
You can also access Industry Groups via the “Open Stock Ideas” button. It’s generally best to
concentrate on stocks that are in the top 40 Industry Groups—this can improve your odds for
success in a good market. The overall goal should be to identify the leading stock in a strongly
performing industry group and take a position in it.

Access Markets/197 Industry Groups under Reports

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 Using MarketSurge: Stock & Fund Screener Screens, Alerts, and Notes

Screens, Alerts and Notes

The Screen, Alerts and Notes panel helps you filter the database for stock ideas, set price alerts and
make research notes. You can also share your custom screens with fellow members and browse
through thousands of others shared with the MarketSurge community.

The notes feature allows you

to annotate your analysis.

Use annotations and advanced Click this tab to hide or expand

mark-up tools to keep track of the Screens, Alerts & Notes panel.
your notes and mark up charts
to your liking.

Page 18
 Screener Overview

Screener Overview
The MarketSurge Screener allows you to filter through our database of 35,000+ stocks and funds to
find ones that meet a specific set of criteria. Create simple filters for a quick look at what’s moving in
the market or use complex filters to spot potential investment candidates. You can also access the
custom screens from MarketSurge’s quarterly Stock Guides, which feature stock screens set up by
MarketSurge coaches and subscribers.

Stock & Fund Screener

Click on New Screen to create
Set the criteria for your screen.
a stock or fund screen.

View screen results in the List

Panel. Results appear dynamically
as you modify criteria.

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Using MarketSurge: Stock & Fund Screener Customizing the Screener

Customizing the Screener

With over 150 data points, the screener is designed to narrow your search for stocks that fit your
investing style. Stock screening categories are neatly organized in specific folders to help you choose
where you want to query our database. Just click on the category name to view all the criteria in that
specific category. For example, by clicking on the SmartSelect tab, you can view the six criteria related
to this folder and choose which items you want to include in your screen.

Set your screen

parameters here.

Select from over 200 criteria here.

Page 20
Using MarketSurge: Support Resources Education and Support

Education and Support

MarketSurge has many more resources to help you become a successful investor. Check out the
Resources section on our website for webinar recordings, videos and more.

Learn all about MarketSurge with detailed

instructions provided for each feature.

Questions? (800) 831-2525 | [email protected] Page 21

Getting Started

Applying
MarketSurge

Page 22
 Chapter 1

Identify
Winning Stocks
One of the keys to success in the market
is the ability to identify which stocks have the potential to become
big leaders in the next bull market cycle. History has proven that
leading stocks will display similarly outstanding fundamental and
technical action before beginning their tremendous price runs.

MarketSurge charts are designed to help investors quickly assess a

stock’s fundamental and technical strengths. The chart’s efficiency
combined with our platform's access to institutional-quality data are
essential to identifying stocks with the greatest potential.

In this section, we explain how to assess a company’s fundamental

and technical data before deciding which stocks to buy.

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 Getting Started

How Do I Find Stocks That Are Most Likely

to Increase in Price?
Imagine capturing Microsoft (MSFT) in 1989 at the start of one of its big
moves. This big winner, and many other leading stocks, posted huge
earnings and sales before tremendous price appreciation. Confirmation
of strong fundamentals can also include return on equity (ROE) and
margins (pretax and aftertax). If a company exhibits strong fundamen-
tals and leads its industry, it’s usually because of an innovative product
or service offering. If you want to own stocks with excellent profit poten-
tial, your first step is to search for those with strong fundamentals.

Term: Fundamental Analysis This section covers the basics of fundamental analysis, which includes
The assessment of a company’s a review of a company’s financial health, management and competitive
financial strength and potential for
growth by focusing on earnings, advantages. We see the decision to buy a stock as roughly 70% funda-
sales and other data derived from a mental analysis and 30% technical analysis (covered later). In the stock
company’s financial statements. market, fundamental analysis allows you to identify the companies
leading their industry and growing their earnings.

One way to save time when evaluating stocks in MarketSurge is by

using our proprietary ratings and rankings on daily and weekly charts.
MarketSurge displays proprietary fundamental ratings that allow you
to easily compare a stock against all other stocks in the database on a
scale of 1-99 (99 being best) or A-E (A being best). On the next page, you
will find a sample of this data. For more definitions, refer to the Chart
Legend link located below the charts in MarketSurge.

Page 24
 Chapter 1: Identify Winning Stocks

Fundamental Data
Key Ratings: Fundamental data on daily and
EPS Rating: This stock's earnings data is weekly charts allow you to quickly
outperforming 91% of all stocks in our database. evaluate a stock's potential.
SMR Rating: This stock’s Sales + Profit Margins
+ ROE (SMR) data is in the top 20% of all stocks
in our database.
Acc/Dis Rating: Tracks the degree of
institutional buying and selling of a stock over
the last 13 weeks on an A-E scale.
Composite Rating: Combines all 5 SmartSelect
Ratings into one.

What Makes a Stock’s Price Rise?

Without increasing earnings, there is little reason for a stock to go up in
price. MarketSurge offers six quarters and nine years of earnings his-
tory (including estimates for the next two fiscal years).

Earnings History
Annual Earnings Quarterly Earnings Strong annual and quarterly
earnings often drive

Identify Winning Stocks

rising stock prices.

When looking for potential winning stocks, we are always looking for
something “new,” whether it is new products, new services or new
management, because something new usually triggers an increase in
company earnings.

Questions? (800) 831-2525 | [email protected] Page 25

Getting Started

Familiarizing yourself with a stock’s earnings history and story is cru-

cial to increasing your conviction in its potential. Let’s focus on Super
Micro Computer (SMCI) in 2022. SMCI had outstanding EPS and sales,
and it was able to advance over 104% over the previous 18 months. If you
assumed you missed the majority of SMCI’s move, you were wrong.

Tip In fact, our analysis of the greatest stocks revealed that almost every
You can screen for stock had an acceleration of earnings growth sometime in the 10 quar-
accelerating earnings in the
MarketSurge Screener. ters before the stock started its huge move. SMCI had both accelerating
earnings and sales before its major advance higher and it went on to
advance another 446% over the following year.

Accelerating Earnings and Sales

Super Micro Computer (SMCI)
SMCI had both accelerating June 2022
earnings and sales before its
446% run over the following year.

Sometimes that “something new” is a product that changes consumer

behavior. E.L.F. Beauty’s stock catapulted to tremendous heights when
the drugstore beauty brand gained new price savvy customers with its
high quality cosmetics offered at competitive prices. The company’s
success led to surging profits that further fueled E.L.F. Beauty’s growth
and product line. As a result, it became one of the best performing
stocks of 2023—increasing 161% during the year.

New Innovations
E.L.F. Beauty became one of E.L.F. Beauty (ELF)
the best performing stocks December 2022

of 2023 after the drugstore

beauty brand gained new price
savvy customers with its high
quality cosmetics offered at
competitive prices.

Page 26
 Chapter 1: Identify Winning Stocks

Even though the portfolio managers who helped develop MarketSurge

are growth-oriented, they were emphatic about designing it as a
style-agnostic platform, equally relevant to all types of investors.
Consequently, MarketSurge has a full range of fundamental criteria you
can use to make informed investing decisions according to your style.
And if you’re looking to speed up your analysis, our Checklists (found in
the Related Information Panel) have various sets of preselected criteria
to help you quickly analyze individual stocks.

MarketSurge Stock Checklist

Stock Checklist Customizable Stock
Checklists help you quickly
analyze individual stocks.

Identify Winning Stocks

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 Getting Started

How Do I Read a Stock Chart?

Chart Patterns
Reading chart patterns would
have helped you buy Apple
(AAPL) in 2004, before it began
its 20-fold price advance.

Term: Technical Analysis One of the key things to look for in a stock chart is a chart pattern.
The assessment of a company’s A chart pattern, also known as a consolidation area, is where the
stock price strength and direction,
using price and volume (and/or stock’s price action takes a common path that meets the specific
indicators derived from price and parameters of one of eight patterns. Even the best stocks will take a
volume) as seen on a stock chart. break from their ascent to build these chart patterns, which are made
when a stock falls slightly in price or moves sideways—meaning the
price doesn't rise or fall much. A stock “breaking out” from a pattern is
a technical signal to buy.

Term: Institutional Accumulation Volume data on a stock chart is another way to measure whether a
Refers to the shares of a company stock is strong, healthy and under institutional accumulation (big
bought by institutional investors
(mutual funds, banks, pension funds are buying it), or whether the stock is weak, behaving abnormally,
funds, insurance companies, etc.) and under institutional distribution (big funds are selling it). It is dif-
ficult to track institutional actions without consulting a chart, but one
thing is for sure—big institutional money can’t hide its actions from
the chart. Moreover, charts help you follow hundreds, even thousands
of stocks in a highly organized, time-saving way.

Throughout stock market history, stocks that seem too high in price
often go higher. Ideally, we are looking for stocks in an uptrend that are
constructively consolidating their gains. You can see this “constructive”
action in the chart patterns identified in the following pages.

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 Chapter 1: Identify Winning Stocks

Chart Patterns
Learning to identify these chart patterns (consolidation areas) will
help you determine optimum buy and sell points. Remember: The
institutions are creating these patterns with their trading activity.
Understanding patterns will give you greater insight into the actions
of large players.

MarketSurge simplifies this process by highlighting chart patterns

using our Pattern Recognition feature. Seeing these patterns helps
newer investors more easily identify stock trends. For more experi-
enced investors, Pattern Recognition serves a time-saving function
by calculating technical details such as the stock’s base stage, length
and depth of base, depth of handle, pivot point, and current percent
from pivot.

Flat Base
• Base Length: Minimum
of 5 weeks
• Base Correction: < 15%
• Pivot Point: Left-side high of base

Identify Winning Stocks

Weekly Chart Daily Chart

IPO Base
• Base Length: 2 to 4 weeks
• Base Depth: 0% to 20%
• Pivot Point: Left-side high of base

Weekly Chart Daily Chart

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Getting Started

Chart Patterns (continued)

Cup with Handle Base

• Base Length: Minimum
of 7 weeks
• Base Depth: 20% - 30%
• Handle Depth: 12% - 15%
• Pivot Point: High of the handle

Weekly Chart Daily Chart

Saucer with Handle Base

• Base Length: Minimum
of 7 weeks
• Base Depth: 12% - 30%
• Handle Depth: 12% - 15%
• Pivot Point: High of the handle

Weekly Chart Daily Chart

Double Bottom Base

• Base Length: Minimum
of 7 weeks
• Base Correction: < 50%
from peak
• Pivot Point: Breakout through
middle of the “W” pattern

Weekly Chart Daily Chart

Page 30
 Chapter 1: Identify Winning Stocks

Consolidation
• An area of resistance that fails
to form a more defined base

Weekly Chart Daily Chart

Cup Base
• Base Length: Minimum
of 7 weeks
• Base Depth: 20%-30%
• Pivot Point: Left-side high
of base

Identify Winning Stocks

Weekly Chart Daily Chart

Ascending Base
• 3 pullbacks from 10% to 20%,
with each low-point during the
selloff being higher than the
preceding one

Weekly Chart Daily Chart

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Getting Started

Historical Comparisons
You can train your eye to recognize chart patterns by studying big win-
ning stocks of the past using the Change Date feature. MarketSurge
encourages this education process by offering a database of charts
dating back over 40 years. By studying the chart patterns of previous big
winners such as Xerox (XRX), we can train our eyes to recognize patterns
in those of the future.

Why Follow Institutional Investors?

Each trading day, the majority of market volume is coming from institu-
tions (i.e., mutual funds, hedge funds, pension funds, etc)—bottom line
is they’re are the ones who move the market, not individual investors.
Institutional buying and/or selling pressure can greatly influence the
price of a stock.

MarketSurge makes it easy to monitor institutional activity by track-

ing fluctuations in a stock’s volume—using the 50-day moving average
line can help you identify instances of above-average trading volume.
Average trading volume for Apple might not be the same as Google. To
determine the average trading volume, MarketSurge calculates the trail-
ing 50 days of average trading volume for each stock. Ideally, on days
your stock is up, its volume will also be up, and on down days we prefer
to see lower trading volume. On a key day, like a breakout day from a
base, we want volume to be unusually high. Historically, some of the
biggest stock market winners had volume two to three times greater
than normal on their breakout day.

When researching potential stocks for purchase, we are trying to capture

those stocks with a great chart pattern, outstanding fundamentals and
a large increase in volume as the stock moves up through the pivot price
(buy point). This is the “tell” for big institutional demand. Unfortunately
for us, the institutions don’t telegraph their intentions when they’re try-
ing to accumulate a stock. However, by following price and volume, we can
observe their actions in real time.

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 Chapter 1: Identify Winning Stocks

Breakout Day
Breakout Days The day when a stock moves
up in price through the
Chipotle Mexican Grill (CMG) Google (GOOG) pivot price (buy point).
September 2010 April 2005

Identify Winning Stocks

Sponsorship
MarketSurge also offers access to an extensive mutual fund database
of over 27,000 funds. You can screen this database for fund perfor-
mance, access specific holdings within funds (as of the most recent
quarterly report) and use the database to determine institutional
sponsorship.

Start by developing a list of your top 20-25 mutual funds and flag
each of them in the list panel. You can hand-pick funds with impres-
sive performance or use the components of the IBD Mutual Fund Index
(MarketSurge symbol 0MUTI), which is a curated list of the best growth
funds according to IBD. Once flagged, the flag icon will appear anytime
these funds are in a list, or being charted. This makes it easy to see how
many of your top funds have a position in a stock you are researching.

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Getting Started

Chapter 2

Develop
a Routine
MarketSurge is designed so you can conduct
your entire research routine on one screen.

We integrated all of our research products into a single platform so you can
quickly find ideas, analyze those ideas and manage them all in one place.

The following section will describe the steps required to accomplish

each of these three critical tasks during your research routine. We end
the section with a suggested approach to developing a research routine,
depending on your schedule.

Page 34
 Chapter 2: Develop a Routine

Finding Ideas

Screening
MarketSurge allows you to screen our database to find stocks and funds
that meet a specific set of criteria. Screening is a powerful way to find
stocks that correspond to your investing style.

If you are new to screening, consider starting with the MarketSurge pre-
set screens. You can find a list of screens catered to different investing
philosophies within the MarketSurge Stock Screens and MarketSurge
Fund Screens folders.

Once you become comfortable with screening, you can customize

the screener to target specific investment ideas. Schedule a session
with your product coach for a more in-depth guide to the MarketSurge
screener.
Preset Stock and Fund Screens
MarketSurge offers several
preset stock and mutual fund
screens that are geared toward
a variety of investing styles.

Develop a Routine

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Getting Started

Reports
Another resource to help you find ideas is the Reports folder in the List
Manager. MarketSurge reports are generated daily and weekly from pre-
set screens that are run automatically for you. For example, the Stocks
folder includes the Weekly New High Report, which lists stocks that
reached a new 52-week price high during the prior trading week.

The Growth 250 (G250) Report is a premium list of stock ideas that
saves time in your research process. Designed by professional portfo-
lio managers, the G250 Report is generated using 30 separate stock
screens that evaluate different aspects of growth stocks on a weekly
basis. Because of the advanced screening criteria in the report, the
list size fluctuates, acting as an additional indicator of overall market
strength. A larger G250 list indicates the market is likely strong, while
a shorter list usually corresponds to a weaker market. The Growth 250
Report, in conjunction with the Pattern Recognition algorithm, will allow
you to search for stocks currently building bases or those that have
recently broken out of a base. The Alerts feature will also allow you to
set up alerts on any stocks in the Growth 250 as they break out in “real-
time” (using the NASDAQ Last Sale real-time reference data).

Premium Stock Reports

Access MarketSurge preset
stock reports and premium
Growth 250 reports.

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 Chapter 2: Develop a Routine

Analyzing Ideas

MarketSurge Charts
MarketSurge charts enable you to conduct thorough stock analysis in a
short amount of time. It is generally best to start with the weekly chart
because it gives you the most fundamental and technical data in a
single snapshot and everything you need to make an informed decision.
Once you become comfortable with all of the data points, you will be
able to quickly scan hundreds of charts and stay on top of the market.

Interpreting the Weekly Chart

At MarketSurge, we encourage investors to use weekly charts to make
decisions. We recommend you start with the price action, interpret-
ing the chart pattern and buy point. Then, we work our way clockwise
around the chart (as shown below), looking for certain technical and
fundamental data points.

1
2

Develop a Routine

Interpreting the 1. Identify the 2. Quarterly EPS 3. ROE at least 17%? 4. O’Neil proprietary
Weekly Chart pattern and and Sales with Other stocks in rankings—3 to 5
(Clockwise from potential pivot, emphasis on group? Increasing year growth rate of
the right): RS Rating and two most recent fund sponsorship? at least 25%
RS Line quarters

Questions? (800) 831-2525 | [email protected] Page 37

Getting Started

Managing Ideas
Structuring a This section covers techniques for watchlist management, including
consistent routine in adding items to lists, removing items from lists and customizing lists.
MarketSurge helps
you stay on top of your Watchlists will help you focus your time and energy and track the prog-
portfolio and potential ress of your ideas. Having an organized watchlist is crucial to staying on
leading stocks, without top of the market—no matter your investing style. Here are three watch-
having to monitor the lists we recommend: Universal, Ready-to-Go, and Portfolio.
market every day.
Universal
The Universal watchlist is intended to capture any stock ideas you
might find appealing. These ideas may be weeks away from breaking
out, but you don’t want them to fall off your radar. We recommend using
fundamental screens to help you find the best stocks for your Universal
watchlist. Be sure to review your list weekly to keep your selections
fresh.

Ready-to-Go
Move any stocks completing chart patterns and nearing buy points,
from your Universal list into your Ready-To-Go list—this queues up
stocks you may buy in the near future. This list will be much smaller
and more focused than the Universal list, so you should plan to review
it daily.

Portfolio
The third list tracks your portfolio holdings. You should review this list
daily to evaluate the performace of stocks you own.

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 Chapter 2: Develop a Routine

Routine
Having a routine helps busy investors manage their time, while keeping up with the market and
their positions. Most investors don’t manage their portfolio as their full-time job, which is why
they use MarketSurge to structure a consistent routine. With MarketSurge, you can stay on top
of your portfolio and potential leading stocks without having to monitor the market constantly.

Why is a routine important?

With a consistent routine, you will achieve better results. For example, doing research and
creating a “gameplan” over the weekend not only minimizes the work you need to do during the
week, but you can also use the time to gain clarity and consider your objectives without having
any emotional reactions to the market action. During the weekdays, monitor your “gameplan,”
taking advantage of the preparation you put in over the weekend. By not drifting too far from the
market, you will always be able to stay in touch and develop an awareness of the signals that
indicate a shift in market trend.

A successful research routine will include:

• Generating stock investment ideas
• Analyzing those stock ideas
• Building watchlists to stay organized

Weekend Routine Checklist Weekday Routine Checklist

3 Review Reports folder (e.g., Growth 250, 3 Update and review your Ready-to-Go list
New High report) for any changes
3 Run your favorite weekend screens 3 Run your weekday screens (e.g., Stocks
3 Add, subtract or shift stocks, as needed, Up on Volume)
from your Universal watchlist 3 Add or subtract from your Portfolio list,
3 Build your Ready-to-Go list for the based on weekly market action as needed
upcoming week 3 Print out daily/weekly charts of any new
3 Interpret general market indexes for purchases/sales
signs of strength or weakness
3 Review top 40 industry groups, plus any
groups that are moving up quickly in the
rankings

Questions? (800) 831-2525 | [email protected] Page 39

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March 2024