Is it really this easy? These guys say they tested this system on 10000's of trades with strong results. Does this make sense?? I always thought and was taught to buy new highs not this method. Something seems odd about this, any thoughts? Practically, how can one trade this massive bull move? The same short term stock picking principles are in play regardless of the state of the underlying market. The axiom of buying the selling and selling the buying rings true in all conditions. We have quantified this short term stock picking method into an easy to use, three step system. The first and most critical step is to only look at stocks trading above their 200-day Simple Moving Average. This assures that a strong, long term up trend is in place, increasing the odds that you are not buying into a falling knife or catching a stock in a death spiral. The second step is to drill deeper into the list locating stocks that have fallen 5 or more days in a row or experienced 5 plus consecutive lower lows. Yes, you heard me right, fallen 5 or more days in a row.<b> I know this is counter-intuitive of conventional wisdom of buying stocks as they climb higher. However, our studies have clearly proven that stocks are more likely to increase in value after a period of down days than after a period of up days.</b> The third and final step is a combination of whittling the list down even further by looking for names whose 2-Period RSI (RSI)2 is less than 2 (for additional information on this proven indicator click here) and the Stock PowerRating is 8 or higher. The Stock PowerRatings are a statistically based tool that is built upon 14 years of studies into the inner nature of stock prices. It ranks stocks on a scale of 1 to 10 with one being the most volatile and least likely for short term gains and 10 proven to be the most probable for gains over the next 5 days. In fact, 10 rated stocks have shown to have a 14.7 to 1 margin of outperforming the average stock in the short term.