25 May

How To Use The Horizon Line


Stocks closed the week down, as fears of a trade war have dominated the headlines and pushed stocks lower.

Now, if you are a buy and hold investor, this can be a stressful time for you.

Should you be buying stocks here or waiting for a more significant pullback?

Will Treasury Secretary Mnuchin help put a stop to the trade war? What’s happening to commodities like oil and copper?  And are semiconductors stocks doomed?

Firms like Goldman Sachs, JPMorgan, and Bank of America employ thousands of people and build offices across the globe to figure out what’s going to happen with the economy and which stocks will be the most affected by a trade war.

How do I compete with them and still manage to outperform them and the market?

I play a different game… one that has helped me score more than $300K in trading profits this year…

(Freedom Trader was launched with the busy professional in mind… I believe in the service so much that I’m putting a never before seen guarantee behind it, click here to join.)

You see, the stocks I typically trade, small-cap momentum stocks, are rarely talked about among Wall Street firms. In fact, most of them aren’t even tracked by analysts at research shops.

But here’s the really cool thing…while Wall Street avoids these stocks…traders love them, and they are often the largest price and volume movers on any given day.

For example, if you just go to finviz, you’ll see yesterday’s biggest mover was Outlook Therapeutics (OTLK).

Show me a stock I can make 10-20% in a day or two, and you’ve got my attention. All you need to do is recognize where the horizon line is and you’re good to go…

(Not a Freedom Trader yet? Time is running out to get in at this special offer price, click here to get started)

Now, I wasn’t the only one who was able to spot the horizon line and take advantage of it… so were my clients:

50% win on OTLK on Monday morning totaling $6.6k, and took a small 8% win today. ~ Christopher J.

Made a little over 20% on OTLK today… thanks JB!! ~ Mike C.

So far I’ve realized $500 on OTLK. I aimed for 10% only. And over $500 unrealized profit on WKHS. Thanks Jason. This is the first day I’m following your picks. I’m excited for what’s to come.~ Chun W.

Jump in at 2.33 and and put a lint bid in at 2.85 made 23%. While I was working. !!!!!! Thanks Jason ~ Steven B.

That’s right, even some of my brand new clients are able to spot the horizon line and profit from it. And you’ll be able too as well.

Read more about three case studies of real money trades that highlight the horizon line, how easy it is to spot, and how to profit from it.

Horizon Line Case Studies

If you haven’t heard yet, Freedom Trader is live… what that means is I’m going to make things simpler for clients… using just one line to find trades.

Now, spotting patterns may be a problem for many… however, with the horizon line… things are much easier.

The only thing I’m doing that’s different is making it easier for everyone to spot these trades.

You see, when you’re trading stocks… it’s really hard to figure out whether you’re chasing or trying to catch a falling knife. However, the horizon line can solve those problems.

You’re probably wondering, “Jason, what’s the horizon line and how can I use it to generate profits?”

Well, let me show you with some case studies.

$9,300 Winner on VERI Using the Horizon Line

Here’s a look at an actual trade I took… and made $9,300 on… just by using the horizon line.

This is the daily chart on Veritone Inc. (VERI). What we’re looking for is the stock to break out above that orange horizontal line.

That’s an area of value… and the horizon line not only takes that into account… but also the pattern we’re looking at… all I’m doing is making it simpler for clients to learn… and they also get alerted about my trades.

For example, VERI is trending higher into the orange line… it broke above only to come back in.

That said, I was patient with the stock… and still looking to get long.

You see, VERI also had a catalyst… it had strong earnings and was actually up around 15% the day it reported earnings. However, the market was pretty volatile around this time… so I figured it would be prudent to let things settle before I got in.

Now, once I saw VERI break above that orange line again… I bought shares.

Here’s what I sent out to clients – letting them know I bought shares.

Now, the very same day (no pun intended) – I sold my shares just a few hours after I got in for a 13% winner, or $9,300!

(Have a busy schedule and think you can’t trade? Freedom Trader could help with that… if you want alerts like these, click here to get started)

The whole idea is about being able to spot where this line is and getting in when you see price action and technicals indicating it could run higher.

Additionally, just because you made money off of the horizon line in a stock… it doesn’t mean you can’t go back to the well because you never know when another horizon line can pop up.

For example, just a week after I used the horizon line in VERI… another horizon line came up. That said, let’s take a look at the second trade I had in VERI last week.

Horizon Line Strikes Again in VERI

Take a look at the chart in VERI – just around a week after I locked in $9,300 in it.

Well, as you can see… another horizon line is forming.

Now, you might be wondering… “Jason, how did you find this horizon line and how is it different from the one shown earlier?”

It’s simple. The first horizon line… that was a resistance level in VERI… and when you pair that with the price action is was having… if the stock broke above that, it could run a lot higher.

With this second horizon line… the idea is the same.

We identified this level as a horizon line because it was the previous high after VERI caught a nice pop.

Again, we’re looking for a break above that orange line again to get in.

Here’s a look at VERI when I got into the stock…

Now, the stock broke above the horizon line the day before I got in… but I wanted to see some confirmation before I bought shares…

Could you have bought shares earlier?

Of course… but the way the market has been reacting, it was better to stay patient and let the price action let you know to get long. In other words, we wanted to see VERI trade higher the day after it closed above the horizon line (which it did).

Well, shortly after the open after I saw this… I bought shares.

Now, my goal was to see the stock break above $10… but sometimes we have to take what we can get… not only that, the market was looking to close red that day. With all the potential negative headlines, I didn’t want to have too much risk on the table.

You see, one negative headline could’ve caused VERI to break back below the horizon line – causing me to get out of my position… so it was a better idea to take profits, rather than hold for an extra 60 cents in VERI.

Moving on, let’s take a look at another example of a horizon line trade and how you can outperform the market with it.

Horizon Line Does It Again

You might be thinking this is just a one-off trade… however, the horizon line works for me. For example, check out this daily chart in Blue Apron (APRN).

Now, we’ve seen some choppy price action in APRN around the orange line.

What we’re looking for is APRN to break above the horizon line and stay above. We finally saw  some bullish price action, indicating APRN could continue higher once it broke and stayed above $1 (the horizon line).

Here’s what I sent out to clients.

Now, just a few days after I got in… we got a bit lucky because APRN noted it would see profitability as early as the quarter at the time. Well, that was the catalyst that sent the stock higher by nearly 50% at one point!

I didn’t capture the entire move… because that’s not my goal. My goal is to get anywhere between 10 – 20% winners because when you take base hits like those… it adds up over time.

Sometimes, we get more than what we asked for… and I was able to lock in 30% just off the bullish price action around the horizon line…  and getting in on the second break above it.

In just a week, I was able to lock in over $15K in APRN… all from the horizon line!

(Not a Freedom Trader yet? What are you waiting for? Time is running out to get in at a special price click here to get started)

As you can see, the horizon line is simple and powerful… now, if you want to learn more about the horizon line and what it’s all about, make sure to check out my latest webinar replay here.


Submit a Comment

Your email address will not be published. Required fields are marked *

Choose From The Topics Below To Receive Jason Bond’s Market Insights & Alerts:

[adzerk adTypes=”162″ utm_source=”wrbrbwad” utm_medium=”w” utm_campaign=”wadproductweb” utm_term=”JRDE” utm_content=”wwjbpnormsbar_jbp_sidebar” keywords=”jason-bond”]

[adzerk adTypes=”3834″ popup=”true” delay=”3″ cookie=”1″ keywords=”jason-bond”]