It’s Big Spiker Season

by | Sep 29, 2022 | Trading Lessons

Howdy, traders. It’s Matt here.

September is a historically slow month for stocks.

But with most of the month behind us … it’s time to start looking for multi-day runners.

We’ve already seen a few start to pop off. And soon it’ll be open season.

Here’s the most recent example … Heartbeam Inc. (NASDAQ: BEAT)

BEAT chart 15-minute candles Source: StocksToTrade

Here’s a daily chart … 

BEAT chart 1-day candles Source: StocksToTrade

Yeehaw! That’s a +140% spike in less than 2 weeks. And this is just the beginning … 

Bryce and I are looking for more stocks like this. The ones that run for days and weeks. Traders can either hold overnight or trade the intraday volatility. Or both … 

We’re bringing you along for this analysis, so strap in and get ready!

The Formula for Success

Technically, no one knows whether a stock will continue to spike after day one.

But if we focus on the best setups, we’re in a much safer position for profits.

Let’s dissect our most recent runner to understand what makes these things tick.

Here’s why Heartbeam Inc. (NASDAQ: BEAT) continued its spike … 

  • Low float. Stocks with lower floats have higher price spikes. It’s basic economics, lower supply causes higher prices when demand increases. A low float is under 10 million shares. BEAT has a float of 6 million.
  • Low Price. It’s difficult for stocks above $5 to make the huge moves we want. There are always exceptions to the rule, like Bed Bath & Beyond Inc. (NASDAQ: BBBY). But again, we only want the best setups. BBBY was a special circumstance.
  • Hot Catalyst. There’s got to be a reason for the move. And it’s got to be a good reason. Something that shows added value or business progress. For example, BEAT announced a new medical patent for their heart attack monitor.
  • Big Volume. The volume shows how many shares are traded, which basically translates into popularity. And the most popular stocks spike the highest. BEAT traded over 110 million shares on the first day of spiking. If the trading volume is higher than the float, that’s a huge bullish indicator.

Start scanning for stocks that fit these criteria. And even if you miss the first spike, keep the ticker on your watchlist.

As you can see in the above charts, it took BEAT an extra 6 days of consolidation before the breakout.

Want to be alerted to hot trade ideas before anywhere else?

Breaking News Chat is the alert service that traders can’t get enough of. Two former financial analysts scour the stock market and news for stocks that could potentially spike and alert the room allowing you the chance to get in on the action.

Check out the alert for WSRC on September 28th: 

This is a tool you’ll want in your trading toolbox. 

A lot of these stocks offer multiple opportunities to profit. People miss them because they stop paying attention.

If you don’t have a watchlist yet, don’t worry.

I started one for you … 

The Multi-Day Watchlist

There’s no time to waste. These heavy hitters are churning shares as you read this.

Let’s get right into it … 

  • bioAffinity Technologies Inc. (NASDAQ: BIAF)
  • SOBR Safe Inc. (NASDAQ: SOBR)
  • PepGen Inc. (NASDAQ: PEPG)
  • TOP Ships Inc. (NASDAQ: TOPS)

All those tickers are on the watchlist because they fit the four criteria from above.

Add them to your list, and revisit the scan every day to find new runners.

In order to stay profitable in this niche, we’ve got to stay engaged.

As Woody Allen once said, “90% of success is just showing up”.

If you show up every day, you’re way ahead of the pack. Keep that in mind.

Conclusion

No one’s going to hand you profits. At the end of the day, you’ve got to go out there and earn it.

But Bryce and I just gave you a huge head start. Capitalize on that … 

There’s so much opportunity out there. And it’s not just low-priced stocks!

Cryptos have been spiking ever since the Ethereum merge.

Forget about the larger market. Prices have been sliding for months and Wall Street is sweating up a storm.

Here’s some advice, if the larger market sucks, switch to a sector that’s outperforming.

Focus on the stocks we shared today. Take a look at my #1 crypto play of the month.

This is your life, you get to choose what to trade.

So follow the money.

Recent Articles

Take Your Pick

Howdy traders, it’s Bryce here. How did you do yesterday?  The markets took a sizable dive. For...

Big Crypto Agenda

Howdy traders, it’s Matt here. The biggest story lately has been the FTX collapse. But I just read...

Monday Watchlist

Howdy traders, it’s Bryce here. I hope you had a great Thanksgiving full of family, friends, and...

Recent Tweets: