A 26% Gain In 4 Months... Thanks To This Little-Known Indicator

Last week, we told you about the Alpha Score, a little-known indicator that can flag exactly which stocks are about to jump 61.5%, 26% or even 118% within weeks and months.

#-ad_banner-#On Jan. 14, for example, the Alpha Score triggered a "buy" signal in AstraZeneca PLC (NYSE: AZN ), a drug manufacturer with a market cap of nearly $100 billion. At the time, most analysts were extremely bearish on the stock. AZN had been suffering from what one analyst called, "the steepest patent cliff in the industry."

The Alpha Score disagreed with the bearish assessment. It signaled that AZN was one of the stocks most likely to outperform the market in the short term.

You see, the day we published our report, AZN sported an Alpha Score of 178.

AZN is now up more than 25% since Jan. 14, easily outperforming the S&P 500, which is up less than 3%. What no analyst knew about AZN at the time was that its Alpha Score was one of the highest in the market.

Every stock has an Alpha Score, and it can range from 0 to 200. The higher a stock's Alpha Score, the more potential it has. The Score is derived by combining two of the market's most effective triggers -- a technical trigger and a fundamental trigger.

The technical indicator, or "Alpha Trigger #1," as we call it, has been proven to beat the market by traders and academics alike. You might be familiar with it; it's called relative strength ( RS ).

RS measures the performance of a stock relative to all other stocks in the market. Every stock can be assigned a score from 0 to 100. For example, AZN had a RS score of 100 when we recommended it, meaning it was outperforming just about every stock in the market.

But relative strength is only half the story when it comes to the Alpha Score. While RS helps us find stocks likely to move higher, "Alpha Trigger #2" helps us identify companies with solid financials and enough resources to grow their businesses.

Alpha Trigger #2 can also be assigned a value from 0 to 100, and when combined with its relative strength rank, we can find the Alpha Score. And so far, the Alpha Score has been on a tear.

Since we first published our Alpha Score report in October, this indicator has already delivered 21 stocks that went on to soar 20% or more within two weeks of their "buy" signal. This includes a 33% gain in nine days, a 26% gain in 21 days and a 61.5% gain in 21 days. It's also identified two stocks that have delivered triple-digit gains.

I can't reveal more about the Alpha Score in these pages because it needs to remain a secret. It's been proven that once a market-beating strategy gets too widely known, it can lose its effectiveness.

That's why we're restricting the number of investors we're sharing our Alpha Score research with -- we don't want to give away our edge. A few weeks ago, we opened up 500 spots for investors interested in benefiting from our success with this indicator. As of this writing, less than 25 of those open positions remain.

If you act now, you may still be able to access the Alpha Score by following this link . In our report, we'll give you more details about the Alpha Score and tell you which stock it's signaling to buy now. Click here to get started .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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