Rocket Stocks Lingo

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.

Apollo 11 Rocket Stock - A qualifying rocket stock which maintains a 100% or more gain at the end of the trading session.

Apollo 13 Rocket Stock - A qualifying rocket stock which does not maintain a 100% or more gain at the end of the trading session. Apollo 13 rocket stocks can happen as a result of many factors, but often they occur because the news catalyst was not really that meaningful or the company makes a Direct Public Offering aka Registered Direct Offering or Public Offering which results in the stock becoming diluted. Apollo 13 rocket stocks can also occur as a result of a selloff by several large shareholders which in turn can potentially have a ripple effect causing more traders and investors to sell. Apollo 13 ripple effect selloffs can also trigger several trading halts which can even lead to an even more severe selloff. Apollo 13 rocket stocks can also be pump and dump schemes, runs, ramping, wash trading, or another form of market manipulation even though they have an official news catalyst.

Automated Trading System (ATS) - A computer system that has be designed to scan SEC filings and/or press releases (PR), and/or other data and trades stocks automatically based on keywords or other data points that have been programmed into the algorithm. Some automated trading systems now have artificial intelligence integrated into them so they are constantly improving. Automated trading systems are lightening fast and trade a stock within seconds of a filing with the SEC being made, a PR being released, or other data being discovered. While these automated trading systems are good, they can and do make errors while also missing meaningful press releases. An automated trading system is only as good as its programming, and unless the strategy being used has been perfected and is constantly updated the automated trading system will not have a very high success rate. Automated trading systems can cost hundreds of thousands or even millions of dollars to create and maintain and are often operated by the Big Dogs on Wall Street that have years of experience and the financial resources to create and maintain them.

Direct Public Offering aka a Registered Direct Offering or a Public Offering - When a company offers more shares for trading from the shelf. This increases the Public Float and can also result in the stock becoming diluted. Sometimes companies will release news to pump the stock value up only to make a direct public offering which often makes a rocket crash and burn. If a company has a history of releasing news to pump up the stock and then making a direct public offering afterwards the pattern is usually very conspicuous and can be seen by looking at the PR history or SEC filings. Some traders and investors will blacklist stocks that have a history of this behavior, but inexperienced traders and investors can still fall victim and become Bagholders. Companies that have a history of releasing news to pump up the stock and then making a direct public offerings afterwards sometimes also do a reverse stock split later which can potentially dilute the stock even more.

Momentum Rocket Stock - A stock which reaches rocket status because of an unofficial catalyst like an analysts ratings, social media sentiment, speculation, trends, fads, or other factors. These types of unofficial catalysts can create momentum causing the stock to rocket, but at the same time also results in extreme volatility. Momentum rocket stocks can also be pump and dump schemes, runs, ramping, wash trading, or another form of Market Manipulation.

Press Release (PR) - An official news release by a publicly listed company which is disseminated through one of four PR release services: Globe Newswire, PR Newswire, Accesswire, or Business Wire. All four PR release services are syndicated in the PLUTU$ Newswire where PRs can be sorted and filtered with PLUTU$'s unique algorithm which allows for PRs to be filtered based on stock fundamental data and other data points.

Ripple Effect Rocket Stock - Ripple effect rocket stocks are created when a company releases a copycat PR based on some sort of momentum that another company has created or that a sector is experiencing. These companies play off this momentum and sometimes their stock will reach rocket status, usually temporarily, as a result.

SEC EDGAR System - The EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, is the primary system for companies and others submitting documents under the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, and the Investment Company Act of 1940. Containing millions of company and individual filings, EDGAR benefits investors, corporations, and the U.S. economy overall by increasing the efficiency, transparency, and fairness of the securities markets. The system processes about 3,000 filings per day, serves up 3,000 terabytes of data to the public annually, and accommodates 40,000 new filers per year on average. SOURCE: SEC

Looking for more stock market terms? Check out the Glossary of Stock Market Terms

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