We asked Jeffry Turnmire, the brilliant engineer behind “60 Minute Surges,” to break down one of his trades for us and show us what’s really going on… and he gladly obliged!
A “60 Minute Surge” is an opening bell gap fill trade.
In plainspeak, that means that when a gap forms overnight on a particular ticker symbol, Jeffry readies himself at the opening bell to trade the momentum as that gap closes.
For over 20 years of data, this gap has reliably closed 65-70% of the time. And with the enhancements Jeffry has made to his methods, he has claimed an incredible 81% track record over the last four months!
Of course, there’s no guaranteeing that those gains continue… But let’s take a look at a chart and talk about why this trade works…
Technically speaking, these overnight gaps form on what’s called “irrational exuberance.” But the simpler way to say it is that when there are fewer traders trading the market, as there after after the close, emotions play a bigger role.
A gap forms because people overreact, but when the markets open, sanity takes back over. The volume of traders flooding into the market return IWM to its “natural” state.
Think of this momentum like a rubber band: you can stretch a rubber band as far as you like, but as soon as you let go, it’s going to relax back to its natural, unstretched state.
The opening bell is like a “release valve” for the rubber band. Because as traders flood in, the tension caused by the overnight traders dissipates, and equilibrium returns.
As you can see on the chart, that leads to some very fast moving trades.
In this case, Jeffry saw an entry as soon as the momentum started to fill the gap.
Just 10 minutes later, a bearish candle signaled that he should exit. You can see, IWM continued to climb higher, but Jeffry was perfectly happy to claim 30.14% in 10 minutes!
Believe it or not, that is a fairly modest trade for the incredible system he calls “60 Minute Surges.”
Because Jeffry’s strategy is perfectly calibrated to capture that “rubber band” momentum, capitlaize on the momentum flood on IWM in the early market, and take advantage of this rare market anomaly.
We appreciate Jeffry for leting us share this deep dive into his trading system. It shows how confident he is in this strategy to share all the details in an email with complete strangers. But after seeing the track record for ourselves, we can see why he’s so sure.
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