This Bull Market Indicator Is the Strongest Sign Yet

Written By Alex Koyfman

Posted June 13, 2023

Dear Reader,

As a veteran speculator, I’ve developed somewhat of a thick skin when it comes to emotional catalysts. 

I don’t sell in a panic when the share value of a stock I own falls, and I don’t buy in a frenzy when I see share prices rising. 

I don’t spend much time listening to mouthy pundits, including most of the supposed experts who operate in the same industry as I do. 

I take every CEO phone call and pitch meeting with a couple pounds of salt. 

Nothing but time and practice will build such a force field around your investing doctrine, and the benefits of taking that time are numerous and profound. 

That said, there is one aspect of the game that still keeps me up at night, and though I don’t let it affect my actions, I’ve found that there is little I can do to remain calm in the face of it. 

Best Friend or Worst Enemy?

That element happens to be my fellow speculators — the people who own the same stocks that I do but fail when it comes to blocking out the emotional background noise. 

I keep using the word speculator for a reason. Speculators distinguish themselves from investors in that they accept higher-than-normal risk levels in exchange for higher-than-average return potential. 

In the world of publicly traded companies, the speculators are the people who buy the small stocks the microcaps, the companies that went public not at billion-dollar valuations but far earlier oftentimes at market capitalizations measured in the double- and even single-digit millions. 

Now, within this somewhat rare breed lies a paradox. While these people are among the bravest of investors, they are also simultaneously among the most jittery. 

Very common within the ranks of the microcap speculators is the rather schizophrenic instinct to bail out on stocks with the same urgency that they were entered into in the first place. 

The enthusiasm of one day is balanced out by the fear and uncertainty of the next.

Does This Sound Like Your High-School Girlfriend?

While I haven’t counted myself among the ranks of these nervous speculators in years, I’m still subject to the share price fluctuations that their vacillatory trading patterns produce.

It’s annoying, to say the least, to watch paper gains wiped out a day after they arrive, but this emotional nature does give the rest of us a very interesting advantage. 

Looking at the Russell 2000 index, which tracks some of the smallest publicly traded companies in North America, you will see wild fluctuations over the last year as investor sentiment attempted to figure out which way the market was going. 

The Russell 2000 has bounced up and down about 20% over the last year — not too far off from the S&P 500’s fluctuations, but the difference is that the Russell 2000 has bounced not once or twice but four times within that 52-week time frame. 

russell

That 4x rate of oscillation illustrates what I said earlier about the mindset of speculators. When they’re confident, they’re very confident, and when they’re scared, they’re very scared. 

They change their minds often and drastically, but right now, as the Russell 2000 heads back into an upward trajectory, it does so in unison with the rest of the major indexes. 

Bull Market Indicator – The Planets Are Aligning

That tells me that the most jittery investors out there are finally starting to find their courage just as the rest of the market is doing so. 

If that isn’t a sign that a bull market may be around the corner, I don’t know what is. 

Now, if you’re like me, you’ve been holding and even buying into the flatlining market this whole time. 

And since microcaps, particularly those in the tech sector, have been pummeled, those buying opportunities have been plentiful. 

Still, in a world where fundamentals take a back seat to the tone of the moment, these opportunities have been overlooked. 

Now that things are starting to drift back into normalcy, a lot of oversold stocks are on the cusp of a massive resurgence. 

One of the most promising of them is a next-generation battery company that’s about to start commercializing the world’s most advanced graphene cathode batteries. 

These batteries boast some incredible stats. They have up to twice the charge capacity as their lithium-ion equivalents, up to three times the overall life span, and up to 70 times the charge speed. 

No, It's Not a Typo… From Dead to Fully Charged in Under 60 Seconds

They’re also far more stable, which makes them immeasurably safer in terms of fire risk, and, perhaps most important of all, they’re politically unattached to the world’s biggest battery maker the People’s Republic of China, which has been quietly building a lithium monopoly for the last 30 years. 

This company, which is public and trades on two exchanges in North America, currently trades at a market capitalization of US$184 million. 

On April 6, just 10 weeks ago, that market cap was $102 million. 

russell

Want a glimpse of where the stock might be if the bull market does return? 

At the end of 2021, this battery maker was trading at a market cap of $405 million 120% higher than it’s trading as you read this. 

Meanwhile, since that December 2021 high-water market, the company has made major strides in achieving its business plan, moving ever closer to mass commercialization of a product that has the potential to not just compete with the lithium-ion battery market but completely disrupt it. 

Bull Market Indicator – Want to Buy Low? That Ship Is About to Sail

Depressed share prices, incoming bull market, major commercial milestones closer than ever… 

The math isn’t hard to do. When all is said and done, this could be one for the books.

Want to learn more about this battery maker? 

Go ahead and take a few minutes to check out this video presentation on the topic.

Considering that the world is in the midst of a shift from fossil fuel to electron-driven power, there are maybe half a dozen other companies trading on today’s public markets that approach the potential of this battery maker. 

The only question is how long are you going to wait before getting involved?

Enter here to get the rest of the story.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.

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