Howdy traders, it’s Bryce here.
Happy Saturday.
Want some serotonin on your relaxing day off?
Check out this profit opportunity …
Vallon Pharmaceuticals Inc. (NASDAQ: VLON) is a sketchy biotech with an ongoing investigation. Investors were reminded last week … and the stock spiked on a huge short squeeze.
The price consolidation midday is especially important.
The ticker has a float of only 8 million shares. There’s a short squeeze that spiked the price already that day, then the consolidation above $0.40 … absolutely textbook!
Any trader had the opportunity to buy above that support and sell into the breakout …
VLON chart 1-minute candles Source: StocksToTrade
And if the price falls below support, sell for a tiny loss. No problem at all.
This is a key pattern to watch for every single day.
But it only works if you play the right stocks.
Here’s how I find the hottest tickers …
Catalyst
There needs to be a reason for the move!
Cement that saying in your head.
If you start trying to trade a ticker that doesn’t have a catalyst … check yourself.
Go for a walk, sit on your hands, close the laptop for the day. Whatever you need to do.
Traders that start to make up plays will lose everything. Sykes has seen it over and over again.
With that said … these plays can be quick. So I need to focus on the hottest news, and I need to get there early.
Want to be alerted to hot trade ideas before anywhere else?
StocksToTrade’s Breaking News Chat alerts major catalysts right as they’re happening, allowing you the chance to get in on the action.
Check out the alert for QBIO on February 10th:
This is a tool you’ll want in your trading toolbox.
Easier said than done? Maybe a few years ago …
I use a breaking-news scan to alert me every time there’s hot news in the market.
Then all I have to do is wait for it to start moving.
Sykes uses the same tool.
It’s how we gain an edge in the market.
I’m pumped for Monday. You should be too … there will be new opportunities to profit.
See you in the next letter.