Rocket Stocks Criteria

WARNING: THE FOLLOWING CONTENT ABOUT ROCKET STOCKS IS FROM AN ONGOING STUDY BEING CONDUCTED BY THE PLUTU$ ANALYTICAL TEAM. THE DATA PRESENTED HERE FROM THIS STUDY IS MEANT TO ILLUSTRATE THE OBSERVATIONS THAT HAVE BEEN MADE DURING THIS STUDY OR OPINIONS BASED ON THESE OBSERVATIONS. IT IS IN NO WAY A RECOMMENDATION OR ENDORSEMENT FOR ANY SPECIFIC TRADING OR INVESTMENT STRATEGY.

Rocket stock criteria can and does change based on several factors. One of the main factors being how many players are on the field, hence if there are more players on the field the average ranges observed will be exceeded more often. (e.g. The float range may increase as there are more players on the field to buy the stock.) Rocket stock criteria is meant as a general guideline for the PLUTU$ Analytical Team, not as a ruleset which is set in stone. To know the latest criteria and how the rocket stock criteria is changing the markets must be constantly observed during all trading sessions and a rocket stock spreadsheet is also maintained and studied on a daily basis by the PLUTU$ Analytical Team to track fluctuations and isolate any patterns. All rocket stock criteria can, and has been known to exceed the average ranges observed by the PLUTU$ Analytical Team. (e.g. If the PR catalyst is extremely moving, a cure for cancer, a massive increase in revenue, a technological breakthrough, etc. then this alone can potentially propel higher priced stocks or stocks with a larger float to launch.) The PLUTU$ Analytical Team has observed that the criteria may work for a many stocks, but there will always be some stocks that exceed the average ranges observed. Throughout this study the PLUTU$ Analytical Team has been constantly reminded to always expect the unexpected, and also that extreme caution could be warranted when a stock has exceeded the average ranges observed.

The following Go/No Go Poll, or ruleset, for rocket stocks is based on the PLUTU$ Analytical Team's observations and analysis of past rocket stocks. It is not a definitive guide, nor does it guarantee any outcome ever. The PLUTU$ Analytical Team has also determined that there are other factors which are a crucial part to almost any trading or investment strategy and can affect the overall outcome of a trade and investment, including but not limited to, experience and psychological aspects. The strategies and ruleset described herein are based in part of what the PLUTU$ Analytical Team has observed while studying rocket stocks and they are not meant or recommended for use by any other trader or investor for any type of trading or investment purposes. They are for educational and research purposes only and given as an example to illustrate a point. This criteria is sometimes updated to correspond with market fluctuations and trends, but it may be outdated and also may not take into account all anomalies.

Go/No Go Poll

“A NASA launch status check, also known as a "go/no go poll" and several other terms occurs at the beginning of an American spaceflight mission in which flight controllers monitoring various systems are queried for operation and readiness status before a launch can proceed.” Source: Wikipedia

  1. Is the news catalyst significant enough to propel the rocket into space?
    Correct Answer YES
  2. Is the float below 35M, preferably below 20M or even better below 10M, but above 500K?
    Correct Answer YES
  3. Can the stock be bought at no more than 30% above the percent at news price? Can the stock be bought before it hits 100%?
    Correct Answer YES
  4. Is the stock price less than $10.00 a share, preferably less than $5.00?
    Correct Answer YES
  5. Is the average volume between 5K and 700K, preferably below 200K but not above 1M?
    Correct Answer YES
  6. Was the previous day and week volume before the launch date average?
    Correct Answer YES. If NO, it may warrant proceeding with extreme caution as the news may have already leaked or there could potentially be sharks in the water already buying up shares. Average fluctuations would be an increase or decrease of 1% to 3%. Abnormal fluctuations would be an increase of 5% to 15%, note also that these bigger abnormal increases can easily be done with very little volume increase. It it may also warrant proceeding with extreme caution if there is major positive movement in the stock 12 to 48 hours before the news catalyst was announced. Sometimes the news may have leaked and there can potentially be early buying which pumps the stock up and then there will potentially be a selloff right when the news is announced or shortly afterwards which can potentially crash the stock and even scare away potential traders and investors. However if there is movement in the stock and the price is going down as a result of major selloff action a few days before this is can sometimes beneficial, as the stock will be even cheaper and potentially draw in Price Action Traders.
  7. Has the stock been relatively flat over the prior month or even going down?
    Correct Answer YES
  8. Has there been another or similar catalyst recently in the last few months? Was there a hype PR to announce the upcoming news date a few days or weeks prior, news about news? Was there any sort of buildup a few days before the actual PR date?
    Correct Answer NO
  9. Is the percentage at news time less than 20%, preferably less than 15%, or even better at less than 10%?
    Correct Answer YES, if NO it may warrant proceeding with extreme caution as it could be a pump and dump scheme or another type of Market Manipulation.
  10. Is the volume at news time less than 20,000, preferably less than 10,000, or even better at less than 5,000?
    Correct Answer YES, if NO it may warrant proceeding with extreme caution as it could be a pump and dump scheme or another type of Market Manipulation.

Other Factors To Consider

  1. Has the company recently filed a Form S-3 or Form F-3 with the SEC?
    Correct Answer NO, if YES the company could potentially make a Direct Public Offering aka Registered Direct Offering or Public Offering and this could result in the rocket stock crashing and burning.
  2. Has the stock rocketed over the last year and been on the Rocket Stocks Spreadsheet?
    Correct Answer NO or YES. If YES When? And what was the volume? How did it perform? Any red flags? If recently in the last few weeks and volume was high it may warrant proceeding with extreme caution as there may be Bag Holders and when the stock rockets again they could potentially sell crashing the stock and erasing any gains.
  3. What is the stock doing 10-15 minutes after the PR release?
    Correct Answer GOING UP, UP, UP or possibly remaining flat, and definitely NOT GOING DOWN, DOWN, DOWN
  4. Is the percentage of float shares sold short high?
    Correct Answer YES or NO. If YES and it’s 20% or more this could contribute to the rocket pushing up even higher from the short sellers being forced to close out their position creating a Short Squeeze.
  5. What is the 52 week high and will the stock come close to this high if it rockets?
    Correct Answer YES or NO. If YES then Breakout Traders may push the rocket stock up even more when it hits the 52 week high.
LEGAL DISCLAIMER

Any content or services provided by PLUTU$ does not constitute a solicitation nor should it be construed as investment or trading advice, or an offer, recommendation, or endorsement to buy or sell any securities or related financial instruments, and PLUTU$ makes no representation and has no opinion regarding the advisability or suitability of any investment or trading of any security or other financial instruments. Any securities or related financial instruments mentioned in the content and services provided by PLUTU$ are done so for informational or reference purposes only or given as an example to illustrate an opinion or observation. Some content and services provided by PLUTU$ may be educational or observational in nature and is not designed to recommend or endorse any specific financial, trading, or investment product, service, or strategy.

This excerpt is taken from the PLUTU$ Disclaimer and is part of the PLUTU$ Terms Of Service which all PLUTU$ users are legally bound by.

PLUTU$ - 'Financial insight without all the noise.'