Part of my theory is based on the belief that OTC shells are largely undervalued at their current market caps relative to the amount of liquidity flooding the US markets as well as the current trend in demand for shells (as vehicles for mergers, acquisitions and joint ventures). As a result I believe that capital will continue to flow into these shells and eventually spark a continuation of the mania which began in 2020/21. As you hopefully know, I’m watching for very specific chart patterns to come into play and be some of the best opportunities in the OTC, and that’s my #OTCSET in a nutshell.
With that said, there are countless shells in the OTC and in truth any of them could end up being major winners. The chart pattern I look for specifically is the niche I am targeting and spreading awareness about, however don’t let me talk you out of your shell/merger play if it doesn’t fit the pattern I look for. My approach is predicated on limiting my choices to a much more reasonable number of possibilities while hopefully increasing my odds for success for any given trade. I’m purposely trying to narrow my scope, but there will be lots of winners outside of it.
Will there be shells that don’t meet my criteria that end up doing very well? Of course. Don’t be offended if you ask me about ticker $WXYZ and I tell you it doesn’t fit the pattern I look for. The #OTCSET is all about zeroing in on a very specific niche within a niche and ignoring everything else. My personal belief is that my conviction has to start with the chart. I need to see something so undeniable in the chart that it helps me to see the narrative in a more optimistic lens. In almost 2 decades of trading the OTC, I’ve come to the conclusion that you can’t trust anyone or anything but the charts tend to lie the least.
If the market truly wakes up and triggers a breakout continuation of the 2021 bull market, virtually anything can run and go wild like it did back then. If I don’t see the pattern I am looking for in your ticker(s), don’t be offended. If you see DD you trust, then go with that. I believe this phase in the markets and specifically the OTC will have no shortage of big runners, but my scope just so happens to be limited towards this specific pattern and approach.