Sjuggerud: Exactly how we made 582% with this little-known indicator
From Dr. Steve Sjuggerud, Editor, True Wealth Systems:
After six years and more than $1.5 million of my firm’s money, I’ve figured out the signal.
I know how it works. And I know how to profit from it. Today, I want to share it with you. I’m certain that once you try it, it will change the way you think about investing forever.
Some folks around the office have dubbed my version of the signal the “Nordic Cross.” The name is a playful allusion to my last name – Sjuggerud – and Norwegian heritage.
More important, we’ve already had incredible success using the Nordic Cross in the markets. We’ve locked in “stacked” profits of up to 582%, as I’ll show.
But the best part is that these kinds of opportunities will continue to flash in front of us… month after month, for a simple reason: We’re looking at the markets in a different way than almost every other investor out there.
This secret signal allows us to find opportunities other investors can’t see. And it allows us to make outsized profits regardless of what’s happening around the world. I now track the Nordic Cross on dozens of assets every month in True Wealth Systems (TWS).
You might think that the Nordic Cross is crazy… But we’ve used it in TWS to make 582% gains in biotech… a sector that is known for volatility. And one that can lead to crushing losses if you buy at the wrong time.
Fortunately, the Nordic Cross tells us when to buy. And in case we bought on a “false start,” it would tell us to sell quickly… for only a small loss. But the Nordic Cross isn’t the only thing I look for when investing. I look for three things… I want it to be 1) cheap, 2) hated or ignored, and 3) in an uptrend.
The Nordic Cross that is the basis for TWS looks mostly at the uptrend. This tells us where a stock is going – and tells us when to buy. But I always prefer investments that are cheap and hated in addition to having a Nordic Cross “buy” signal.
These things don’t converge often. But history shows that the biggest gains happen when all three criteria come together.
That’s exactly what happened in the case of biotech… The sector was cheap, hated, and the Nordic Cross gave us a “buy” signal.
Biotech stocks peaked during the dot-com bubble. After the crash, they went nowhere for years. But by 2012, they had become incredibly cheap.
We first bought in early 2012, slightly after the biotech sector’s price-to-sales (P/S) ratio bottomed. Biotech stocks peaked at a P/S ratio of more than 20 after the dot-com bubble in the early 2000s. We bought for a fraction of that price in 2012. Biotech stocks were cheap compared with their own history.
Similarly, no one was paying attention to them. When we first bought in 2012, the fund we bought was up 35% in just a few months… But no one cared.
Biotech stocks weren’t in the newspapers. CNBC wasn’t dedicating prime coverage to biotech. No one was interested.
When investors hate or ignore an asset, and it increases anyway, it’s almost always a good sign. Eventually, investors will notice the performance and dive in to get a piece of the action… And they’ll push prices even higher in the process.
We got in before the rush – when no one was talking about biotech stocks, even though they were soaring.
Of course, this wouldn’t have mattered if we didn’t have the Nordic Cross. It told us that the new uptrend was in place – and that biotech stocks were set to absolutely soar.
Not only that, but biotech stocks had just staged a massive long-term breakout in prices. Take a look…
The Nordic Cross said to buy, so that’s exactly what we did in TWS. And we did it a special way…
In this case, we bought a twice-leveraged biotech fund – the ProShares Ultra Nasdaq Biotechnology Fund (BIB).
“Twice leveraged” simply means that BIB is designed to double the return (up or down) of the Nasdaq’s index of biotech stocks. Obviously, that’s great when the sector is rising, but it can be dangerous when it falls.
Our secret signals are so accurate, though, that they give me incredible confidence. I know they only flash “buy” at the best times… So I don’t mind buying a volatile sector like biotech with leverage.
The Nordic Cross stayed in “buy” mode for the next 10 months. But eventually, things changed. Our system told us to sell, and we closed the trade for a 56% gain in just 10 months.
This was a great investment. But we were just getting started. This was simply a “false start” in the biotech sector…
A month later, the Nordic Cross told us to buy biotech stocks once again. Based on this incredibly powerful indicator, the major move was not over yet.
Most investors would be scared to buy back into a trade a month after locking in a 56% gain. But our secret signal knew better. Importantly, the secret signal had seen similar conditions in biotech stocks… all the way back in the 1980s.
The chart below told us everything we needed to know…
As you can see, during the biggest biotech run in history, the Nordic Cross would have had multiple “false starts” along the way. (Green means the Nordic Cross says “buy,” and red means the Nordic Cross says “sell.”)
So instead of worrying, we dove right back into the trade.
The Nordic Cross was right again… We held until our secret signal told us it was time to sell, closing the trade in April 2014 for a 184% gain.
These were two incredible gains. But the Nordic Cross said the upside in biotech wasn’t over yet. A few months later, it said to buy the sector once again. And in October 2014, we bought BIB for the third time.
This was the third big winner for our secret signal in biotech stocks. We stayed in the trade for 11 months before the Nordic Cross said it was time to sell. We closed the trade for a 54% gain.
What’s incredible is the “stacked” return for these three trades. They earned gains of 56%, 184%, and 54% individually. But if you’d taken your first-trade gains and invested them into the second, and done the same with the third trade, the total “stacked” gain would be 582%.
That’s an unbelievable return. And it was all thanks to knowing the secret signal for the biotech sector.
In total, this 582% “stacked” return took less than four years. And an investment of $10,000 could have turned into $68,200. That’s fantastic.
What’s great is that we can find opportunities like this over and over again – thanks to the Nordic Cross.
We’ve analyzed all of the data for the biotech sector, and that allowed us to find the sector’s Nordic Cross. And we’ve done this for dozens of other sectors as well.
We know the secret signal to invest in sectors and markets all across the globe.
This is exactly what we do every month in TWS. Our computers monitor secret signals for dozens of assets… And tell us the exact right time to own each investment we track.