Howdy traders, it’s Bryce here.
Last week we saw a lot of spikers in the small-cap niche. It was really beautiful!
All while the larger market fell off a cliff.
Look at this chart of the S&P 500 ETF Trust (NYSE: SPY) …
SPY chart 1-day candles Source: StocksToTrade
Do you know what that means … ?
Where primed for a bounce!
Three out of four stocks follow the market.
Since the winter months are particularly bullish for small-cap stocks we’ve still had good profit opportunities.
But with a market bounce, it’ll be on a whole different level.
And these stocks have all weekend to wind up …Â
Winter Volatility
The winter months are special for small-cap stocks.
I wrote a bit about it in the introduction.
There are a lot of factors at play right now …Â
- Lower inflation rates
- Lower interest rates
- Holiday season
- Coming January effect
All those catalysts combine to make a perfect storm that can spike prices to the moon.
And there are a lot of different strategies to play if you want a piece of the pie.
First, realize that some are better than others …Â
Tim Sykes showed me how to trade. He’s been in the industry for over 20 years and he’s got +$7 million in trading profits.
And this is the top pattern he uses right now.
Here are the tickers to watch on Monday …Â
#1: Cosmos Health Inc. Com (NASDAQ: COSM)
First up is Friday’s biggest runner.
It announced a reverse split on December 15, 2022.
A reverse split lowers the number of outstanding shares and automatically increases the value of each remaining share. It’s a bullish catalyst.
The price gapped up and spiked +3,600%. Absolutely nuts …Â
COSM chart 1-minute candles Source: StocksToTrade
#2: Summit Therapeutics Inc. (NASDAQ: SMMT)
This stock’s on a two-week run and the price is still consolidating.
It released news of a $5 billion partnership deal on December 6, 2022.
SMMT chart 5-minute candles Source: StocksToTrade
#3: BeyondSpring Inc. (NASDAQ: BYSI)
Here’s a low-float biotech with news.
There are only 23 million shares outstanding. The volume on Friday shows on full float rotation and the price consolidated the whole afternoon …Â
BYSI chart 1-minute candles Source: StocksToTrade
That’s it for today!
I’ll see you in the chat.
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