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Coding

Unique Trading Algorithm

The Story

Introducing Anna Molly, Zack's innovative stock picking algorithm that emerged during his time studying Applied Mathematics in 2012.   This program is based on a unique mathematical formula that Zack put together one day as a random idea.  That idea turned into Anna Molly, a project that Zack has been working on ever since he thought of it all those years ago.

Over the past decade, Zack has dedicated himself to refining and enhancing Anna Molly. With each passing year, he worked to make Anna Molly faster and better.  He’s spent a lot of time studying exactly how to read it.  Like any market indicator, it's not perfect.  But when used properly in conjunction with other indicators, it can be a powerful tool.  

When technical analysis converges with Anna Molly's signals, significant market movements often follow. Stocks identified within Anna Molly's "Optimal Bull Range" exhibit a notable trend: they tend to deliver above-average one month returns.  

Zack underscores the synergy between Anna Molly and technical analysis, highlighting their combined potential to provide a competitive advantage in navigating the market's complexities. 

 

When you get a strong bullish technical signal AND the algorithm is bullish on a stock, a larger than normal move can occur!

The Basics:

  • When a stock is in Optimal Bull Range and has a bullish technical set up fire off, it has the potential to have a large move to the upside. 

  • Some bullish technical set ups include:​​

    • Breaking over and closing above a downtrend line on the daily.​

    • Bouncing off of a major uptrend line on the daily.

    • Breaking through a resistance level and closing above it.

    • Bouncing off of a major support level.  

    • Darvas box breakouts.  

  • The more stocks in a specific sector that are bullish, the more bullish the reading.  For example, if 4-5 or more mega cap tech stocks are in optimal bull range, that is much more bullish than if just 1-2 are.  

  • If the QQQ/XLK are in optimal bull range, that is a bullish sign for most major tech stocks.  If the SOXX is in optimal bull range, that is a bullish sign for the semiconductor sector.

  • My "Major Tech" list analyzes 15 different stocks.  I run this program almost daily.  The stocks included in this list are QQQ, XLK, SOXX, AAPL, MSFT, AMZN, GOOGL, META, NVDA, AMD, TSLA, SHOP, BABA, SPY & NFLX.  I have an additional list of 30 other Tech stocks that I run as well.

  • Anna Molly is just like any other indicator.  It is not perfect.  Stocks in optimal bull range may never go up.  Just as a stock breaking resistance can reverse and head lower, a stock in optimal bull range can head lower and not bounce for a long time.  

  • When a stock is in optimal bull range many times over the course of 20-40 trading days, the chance of it moving up increases.  

  • Technically, when a stock enters into optimal range, the correct entry is the following days closing price.  If a stock enters optimal range on 5/3/2024, the correct time and day to enter is at the closing price the following trading day. 

  • It is much better at predicting bullish movements over bearish ones.  In fact, I've stopped reporting bearish readings as of recently, unless they're extreme.

Examples:

Working Perfectly - April 18th

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  • The QQQ, XLK and multiple tech stocks entered into optimal bull range on 4/18/2024. 

  • Technically, by the way Anna Molly works, the correct time to go long would be at close the following day on 4/19.

  • At close on 4/19, the RSI on the daily for the QQQ was the most overextended to the downside it had been in over a year and a half.  It also closed near a major support.

  • The closing price on 4/19 was the lowest close we've had over the last two weeks. 

  • The QQQ is up 5% from the closing price on 4/19 to the closing price today, 5/3, only 10 trading days later.   

  • This is a great example of a bullish move playing out immediately after a stock enters Optimal Bull Range.  This without a doubt doesn't always happen.  

Taking Its Time - March 5th

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  • AAPL entered optimal bull range on 3/5.  It quickly went higher then pulled back again.

  • AAPL ripped from a low of $168.16 to a high of $178.36 from 4/11 to 4/12.  Weekly call options I had went up over 5000% from my entry to their high!  

  • AAPL spent the majority of April & May in Optimal range and had 3 significant spikes.  

  • AMZN +10% in 5 Weeks (dropped big after)

  • META +7% in 4 Weeks (dropped big after)

  • SHOP +12% in 3 Weeks (dropped big after)

Nothing Firing Off April 1st

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  • None of these moves have come to fruition yet besides Apple.  However, it is possible that AMZN, SHOP & NVDA could fire off in the coming weeks.  Today is 5/3/24.  

  • On plenty of occasions, Anna Molly will alert a stock, yet it will not fire off higher.

  • BABA on the other hand is significantly higher and entered optimal bull range on 4/30/24. 

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