Hey traders, it’s Bryce here.
There’s a lot to be excited about right now!
On Wednesday, March 20, the FED announced interest rates would remain unchanged. And FED Chairman Jerome Powell expressed the FED’s intention to start lowering rates as soon as possible amid slightly sticky inflation.
The market reacted well, surging to new highs and gapping up on Thursday. See the S&P 500 ETF Trust (NYSE: SPY) below, each candle represents one day:
Three out of four stocks follow the market.
There were solid profit opportunities last week thanks in part to the bullish overall momentum.
- IMAC Holdings Inc. (NASDAQ: BACK) spiked 200%.
- TruGolf Holdings Inc. (NASDAQ: TRUG) spiked 90%.
- Hoth Therapeutics Inc. (NASDAQ: HOTH) spiked 45%.
- Spire Global Inc. (NYSE: SPIR) spiked 50%.
Next week, there’s a chance some of these stocks will continue to run. But most likely, the strongest plays will be new runners with new catalysts.
What’s the difference between you and millionaire trader, Matt Monaco?
Every morning, Matt has access to a powerful suite of features to quickly find actionable trades- without spending hours researching.
In fact, using these tools he is even able to find & make trades in under 1 minute!
Add the stocks above to your StocksToTrade watchlist. And I’ll show you how to find new runners that start moving on Monday.
We see spikers all week long in this 2024 market! Follow the process I’m about to share and you could find a new profit opportunity every day.
Catalyst Spikes
We’re most interested in stocks that spike with news.
There needs to be a reason for the spike. For example, look at the obvious price reaction to TRUG’s March 20 announcement, each candle represents one minute:
This price action isn’t random!
But if you pick stocks at random, you’ll get random results. Focus on the strongest plays. That’s our key to success.
One difficult aspect for new traders is identifying a strong runner as opposed to a stock that’s running at random. Don’t worry, it becomes easier to tell the difference with time. At this point, it’s almost second nature for me.
I use Tim Sykes’ process to trade. You’ll find the entire framework in his Trading Challenge.
But let me share some basics with you …
- The price should spike at least 20% on the day. Stocks that spike 20% can spike higher.
- We like stocks that have a float count below 10 million shares. The low supply of shares helps the price spike higher.
- The intraday volume should show at least 1 million shares traded. That gives us enough liquidity to get in and out.
- There should be a recent and identifiable catalyst. StocksToTrade is good at showing the catalysts overlaid on the charts.
Sykes and I use Breaking News for Wall Street-speed alerts.
As you saw in the TRUG chart above, these plays can move quickly. It’s possible for them to run multiple days. But we want as much opportunity to profit as possible. And the early bird gets the worm …
Breaking News alerted the TRUG spike within minutes of when the news came out:
Get ready for Monday’s alert …
Mondays and Fridays are notoriously volatile. And thanks to the 2024 bullish momentum: I think we can expect some serious runners on Monday morning!
Your Trade Pattern
There are a few strategies we can use to profit off of Monday’s runners.
But safety is our #1 priority!
I’m sharing a video below that outlines a solid strategy. The pattern gives new traders enough time to spot the spike without feeling pressured to get in right away.
On the off chance you don’t see a trade setup that matches the pattern above, that’s fine. Just bide your time and wait for an obvious setup.
We only want the best plays! That’s how we protect our accounts.
An opportunity will come … Don’t underestimate 2024 spikers.
Cheers,
Bryce Tuohey