The document discusses how to find, ride, and profit from big stock market trends. It outlines that only 1 in 4 stocks outperform the market long-term and recommends focusing on stocks hitting 52-week highs. These stocks tend to spend most of their time on high lists and strongly outperform the market. The document also introduces the StockTwits 50 list for ranking momentum stocks and provides guidelines for determining when to exit positions as trends end.
This document provides guidance on identifying market bottoms and the beginning of new bull markets using the indicator of a "follow-through day". It explains that follow-through days signal a change from a market correction to a confirmed uptrend. Specifically, it defines a follow-through day as a day with volume heavier than the previous day where a major index rises over 1.5-2%. Examples from past markets in 1974, 1984, 1998 and 2003 are provided to illustrate successful follow-through days. Readers are advised to prepare a watch list before a follow-through day occurs to catch early breakouts of leading stocks.
