Value to Price Contraction PatternGlobus Medical, Inc.NYSE:GMEDGabrielAmadeusLauVPC Overview What to Watch During Corrections Stay engaged. Corrections are when future leaders reveal themselves. Breadth divergence = danger. If indexes rise while the percentage of stocks above the 200-DMA is less than 50% (especially in the 30s), expect a pullback; rallies are narrow and fragile. Look beyond cap-weighted indexes. Check equal-weight S&P, S&P 400 (midcaps), and Russell 2000; if they lag, leadership is thin. Distribution vs. accumulation. Clusters of distribution days with few/brief accumulation days = risk-off regime. How Leaders Reveal Themselves (3 Phases) Predictive (during the correction): Stocks hold up the best, often within ~25% of 52-week highs while the market is weak. The RS line makes new highs even if the price is flat/down. Keep them on the A-list. Right off the lows (post-FTD): Explosive moves straight from lows, first into new high ground. These often become the cycle’s monsters; wait for the first tight add-on/base if the initial thrust is extended. Confirming (after the turn): Breadth broadens; more proper bases are complete; opportunities are more obvious but still fruitful. Entry Playbook Require a Confirmed Uptrend: A follow-through day (FTD) + real setups. FTD alone is not a buy signal. Focus on VCP bases (Volatility Contraction Pattern): successively tighter swings, drier volume, and right-side strength; buy as it clears the pivot with power. RS Line New Highs into/at Breakout = Green Light. Recent IPOs: prime “magnitude plays”; catch early primary bases coming out of corrections. Progressive Exposure (when trades work) Start with ~25% exposure (e.g., 4–5 x 5% “pilot” positions or one 20–25%). If pilots gain traction, move quickly to ~50%, concentrating on the best names (add to winners). If strength persists, scale to 75–100%. Do not scale up if pilots aren’t working; reduce instead. Selling & Timeframe Define intent up front: trade (harvest faster, lower drawdown) vs campaign (accept drawdowns for bigger targets). Sell into strength when the extension vs. key MAs is wide and the downside is greater than the upside. For developing skill: take partials at 2–3× your initial risk (R) to “free-roll” the position; trail the rest. Never raise cash just because the index is red; raise cash when your stocks show deterioration or hit stops. Risk & Stops Enter with a tight risk (Minervini style: often 3–5% below a well-defined pivot/low). Position size so a stop hit costs ~1–2% of equity per idea. Don’t average down. Cut quickly; the strategy is better than you—your job is to execute it. Five Fast Filters for New Leaders Shallow corrections from highs (ideally ≤25%) and quick recoveries. Bases forming within long-term uptrends; VCP tightenings. Fastest back to new highs after the market low; frequent up-days > down-days (“ants”: ≥12 up in 15). The RS line is making new highs before/at breakout. Recent IPOs with real growth. Mindset Commit to one sound strategy and master it; discipline is greater than prediction. Trust the stocks, not the headlines. When the market confirms and the leaders set up, act. Scanner: https://www.tradingview.com/screener/nbUgxSYj/