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This occurs when a stock trades sideways in various signature patterns (e.g., cup with handle, saucer base, flat base) while it is under accumulation prior to its next move up. We look for these stocks as they can lead to explosive moves out of the bases.

Stocks that don’t qualify for NASDAQ listing are traded here or by Pink Sheets. Be careful.

Analyst working for mutual fund or other institutional investor. We don’t usually get to see their reports.

A longer period of time when prices in the market are generally declining. Bear markets typically are much shorter-lived than bull markets, but are usually more severe given the time period involved. We try to play corrections and bear markets to the downside as they can generate tremendous returns in a short time period.

Any day from Monday to Friday, excluding statutory holidays.

If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities at the current market price of the stock and charge the delivering broker the cost difference of such a purchase.

A false signal which indicates that the rising trend of a stock or index has reversed when in fact it has not.

To an economist, capital means machinery, factories and inventory required to produce other products. To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets.

A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency.

A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to be issued will be sold.