Hey traders, it’s Matt here.
Never let your guard down.
Stocks can spike if the market is open. Especially on Mondays and Fridays.
To the outside observer, it may seem like this volatility is meaningless.
But we’re smarter than that …
Using the StocksToTrade software I watched as FOXO Technologies Inc. (AMEX: FOXO) spiked 50% to end the day on Friday.
You can see the chart below with the news notification. The spike extended to 80% during aftermarket hours.
FOXO chart 1-day, 1-minute candles Source: StocksToTrade
We focus on stocks that have a reason to spike.
There are random spikes that look like FOXO’s all the time. But they’re not profit opportunities unless there’s a reason for the run.
If you buy a stock without a catalyst, you’re gambling.
And gamblers get eaten alive out here.
Keep reading for FOXO’s catalyst and a potential trade plan for Monday morning.
There’s no time to waste!
The Best Plays
Technically, we like when the company announces news in the morning, during premarket hours.
That gives the stock enough time to …
- Build hype.
- Gap up for the true market open at 9:30 A.M. Eastern.
- And hopefully, run even further the rest of the day.
Unfortunately, some companies don’t understand their own scammy game.
FOXO announced news right before the market closed on Friday.
The company announced it entered into a business agreement to develop AI machine learning systems. FOXO pays an upfront fee and monthly maintenance in return for 15% of subscriber revenue. It’s a pretty big AI investment for a penny stock. With clear streams for new revenue.
“AI Weatherman” Uses Strange Forecasting System to Predict Stock Moves
They call this new tech “The AI Weatherman”…
Because it can forecast the future moves of stocks like a weatherman would predict weather…
…With downright scary accuracy…
How does it do it?
Well, it’s all thanks to a unique stock scoring system unlike anything I’ve ever seen before…
From the company’s perspective, the shareholders will likely be able to cash out as the price gaps up during Monday premarket hours.
But for day traders, it kind of screws up the vibe.
There will likely be bagholders on Monday morning at 9:30 A.M. Eastern: People who bought during aftermarket and premarket hours and are now holding shares above the open price. They’ll likely sell into any bullish momentum.
There are two patterns we can use at this point.
Both account for bearish price action at the open.
Also, it’s possible that Monday’s biggest setup isn’t on FOXO.
That’s something else we have to keep in mind.
But I don’t want to overload you. The market will always be here. Focus on FOXO on Monday morning. Analyze the price action and stay safe!
Win or lose tomorrow, if you learn, it’s a success.