Read on to learn the 7 Ways Kyle Dennis uses to find massively profitable stocks!
We’re still in the thick of an extremely volatile stock market environment. That means there are a lot of individual stocks out there every day making extreme price moves… which can theoretically yield big profits for traders.
But with markets moving so fast, it’s not always easy to catch entry points.
That’s why I mostly sat on my hands through the end of the week.
This market is the perfect environment for individual stock picking experts like Kyle Dennis. Kyle is a multi-millionaire stock trading expert that runs Fast5 Alerts and Trade With Kyle where he finds great stock picks.
He buys them and tells his subscribers exactly what he is doing. I often copy his alerts and even in this horrendous market we have been making money.
If you would like to see all of the stock picks that Kyle Dennis has made since I joined his services, here are a couple of articles that you will want to read:
Disclosure: There are some affiliate links below, but these are all products I highly recommend. I won’t put anything on this page that I haven’t verified and/or personally used. I may get paid a commission if you buy anything through these links, at no extra cost to you.
I’m not kidding…..I trade every single alert Kyle Dennis makes in those services and document them in the reviews. I show you what prices he was able to get and how I did.
I basically PROVE that Kyle Dennis is not a scam, fraud or front-runner. Period.
You can also get a great introduction into Kyle Dennis’s trading strategy in his FREE WEBINAR.
Snag your free e-book download to get on the options bandwagon and learn how Kyle Dennis has made $5MM just trading options!
I’ve had a strong month trading with Kyle Dennis so far, and my job right now is to preserve that capital by not taking unnecessary risk.
With the overnight volatility still a huge wild card in this market, it’s more important than ever to remain patient and disciplined.
That said, you can give yourself a head-start on those fast-moving up days in the future by making sure you get Kyle’s watchlist of the most explosive stocks!
That is what I do and easily make 10% gains on my entire account every month…..passively and part-time!
Here are 7 ways that Kyle screens for stocks that will most likely be huge winners – aka high probability setups.
1. Screen for Stocks Set to Rip
Here’s a snapshot of the email Kyle sent us on Thursday morning, when the Dow was up about 800 points an hour into the session:
So the criteria Kyle Dennis was targeting here were:
2. Share Price
This can often be conflated with “market cap” pretty harmlessly, but there are also big-cap stocks that trade at low per-share prices (Ford is a pretty well-known example).
The point here is that low-priced stocks minimize the amount of capital at risk, because they cost less to buy — and for the same reason, it’s also possible to collect bigger percentage gains over a small time frame (like that 22% surge in CLVS shares last Thursday, as the stock rose from $4.42 to $5.40 on the day).
That 22% gain in CLVS was less than 1 point.
In that sense, lower-priced stocks are somewhat analogous to trading options, though it’s not a 100% apples-to-apples comparison.
But the key is that when you’re working with limited time frames in the market, you don’t want a ton of your capital tied up in a single trade, and the greater percentage returns you can pull out, the better.
3. Share volume
Kyle was looking for stocks with at least 1M shares traded about an hour into the session. That signals that there’s high conviction and strong participation in a directional move, which I always like to see.
On a more practical level, this helps to ensure liquidity, which means tighter bid/ask spreads on trades, with plenty of willing buyers and sellers in the market.
So whenever he is ready to exit the trade, he should be able to do so at a favorable price, as long as volume remains strong.
Check the early volume surge on CRON, another Thursday Trade With Kyle watchlist name.
4. Short Interest
This is one of my favorite indicators, because when the shorts get squeezed, it can make a bullish trade move so explosively higher.
High levels of short interest mean that there are a lot of traders betting on the stock to drop, and they’ve done so by borrowing the shares from their broker to sell short.
If the stock starts to rally, those shorts will have to buy back stock to limit losses. The higher the stock climbs, the more shorts start to panic… and that’s when you start to see really powerful squeezes.
Just check out the near-vertical surge in SDC on Thursday, below. More than 47% of this stock’s float is sold short, which is a pretty huge ratio.
Safe to say some shorts got squeezed here on SDC!
Kyle Dennis has set up the basic parameters of this filter for you right here at Finviz.com, using the following criteria:
- Current Volume = 1M (so pull this out about an hour into the trading day)
- Float Short = Over 20%
- Price = Under $10
From there, you’ll want to consider a few more key factors:
5. What’s the overall market doing that day?
It’s very important right now not to fight the trend. Now is the time to ride the momentum — but recognize that you may not be able to determine which way momentum is heading until the session has already gotten underway.
6. Are there catalysts in play?
Be aware of any news headlines or coming events that could be impacting the stock or sector, including upcoming earnings.
7. How does the chart look?
I’m still relying on trusted chart patterns, like bull flags and bottom bouncers, to help me find solid base-hit winners in this market environment.
Momentum can carry a lot of water for us, but don’t let the “need for speed” in this market lure you into skipping over your usual due diligence.
Here is a good example of a bull flag trade that Kyle Dennis alerted in Fast5 alerts.
You can also learn these three high probability chart patterns that Jason Bond (Kyle Dennis’s mentor) uses to pull profits out of the market every single day!
Kyle Dennis Stock Screening Strategy: Conclusions
Hopefully, this should give you a jump-start the next time we have a historic three-day surge higher in the markets — or just a random 1,000-point up day.
Kyle has the experience to find the best stocks and make money from them – even in this volatile market. I highly suggest that you check out his Fast Five Alerts service.
It is VERY low cost and provides some of the best value stock picks in the industry!
Stay safe out there and trade carefully!