By Malcolm T on April 25, 2014

There’s a little-known indicator that’s making a small group of investors a lot of money.

I call this indicator the Alpha Score, because it consistently beats the market and often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits in the coming days. weeks. and months.

I’ll tell you more about the Alpha Score in a second, but just know that the indicator can range from 0 to 200. The higher the number, the more potential the stock has.

For example, you’ve probably never heard of Westmoreland Coal (NASDAQ: WLB ). It operates six surface coal mines and two power generating units in the western United States. The company’s outlook looked promising when we recommended it on Dec. 18. Westmoreland had sold 95% of its future production under long-term contracts, and the market for coal looked stable.

But that’s not what attracted us to the stock. What most investors didn’t know about WLB is that it had an Alpha Score of 158. Less than 1% of stocks have a score that high at any given time.

The stock bounced 33% higher within two weeks. And as I write this, the stock has returned more than 100% since our report was published.

Not every stock with a high Alpha Score will jump this much. But it’s identified 14 stocks that are currently up more than 30% in the past few months. And 21 stocks have gained 20% or more within two weeks of the Alpha Score spotting it.

Here’s the secret to its success.

The Alpha Score is derived by combining two of the market’s most effective triggers — a technical trigger and a fundamental trigger.

The technical indicator, or Alpha Trigger #1, as we call it, has been proven to beat the market by traders and academics alike.

One study by an investment manager named James O’Shaughnessy tested over 60 different market indicators. He conducted exhaustive back-tests of various fundamental and technical variables to identify which, if any, were predictive of future performance.

He looked at all kinds of metrics people use to buy stocks: low P/E ratios, low price-to-book ratios, high dividend yields, high profit margins, etc.

His research demonstrated that this technical indicator consistently beats the market.

While the technical trigger helps us find stocks most likely to move higher, Alpha Trigger #2 ensures that the underlying company has solid financials and enough resources to keep its business growing.

Unlike earnings and other financial data, the second trigger can’t be easily manipulated by accountants. It’s a crucial indicator of success, and is a favorite of legendary conservative investors like Warren Buffett and Peter Lynch. The indicator can tell us if a company is likely to buy back stock, increase its dividend, or invest in new growth opportunities.

Based on my experience and research, I’m confident the Alpha Score will continue to find winning trades. I’ve personally used both fundamental and technical analysis throughout my 30-year career, which includes working as a trader on Wall Street and managing portfolios for high-net-worth clients.

If you’re interested in learning more about the Alpha Score, my publisher has prepared a short presentation that pulls back the curtain on this secret indicator — and even reveals the name and ticker symbol of the top stock flashing buy right now.

You can access it here, free of charge . But I urge you to look now. This video will come down soon.