Stop Wasting Time

by | Jan 25, 2024 | Trading Lessons

Hey traders, it’s Bryce here.

This is one of the strongest markets I’ve seen since the 2020-21 rally.

The S&P 500 ETF Trust (NYSE: SPY) keeps pushing to new all-time highs. There’s an updated photo below.

SPY chart multi-month, 1-day candles Source: StocksToTrade

It seems I cover this idea every day but I’ll say it again for the people in the back:

When the market is strong, small-cap spikes are bigger.

Let me drop some examples for you.

In the last week … 

  • Getaround Inc. (NYSE: GETR) spiked 200%.
  • Evaxion Biotech (NASDAQ: EVAX) spiked 300%.
  • FaZe Holdings Inc. (NASDAQ: FAZE) spiked 270%.
  • Bullfrog AI Holdings Inc. (NASDAQ: BFRG) spiked 60% — They can’t all be +100% spikers, but the AI momentum is unmistakable.
  • The Trump-related Digital World Acquisition Corp. (NASDAQ: DWAC) spiked 120%.

I could keep going.

There are new profit opportunities EVERY DAY.

But I have to warn you: It’s possible to lose money if you play this volatility incorrectly. These spikes are unsustainable. $EVAX spiked 300% but the price will crash eventually.

I trade trashy stocks because they spike like crazy. If I understand the reality of the move, I can adequately protect my account.

That’s how I crossed the $1 million milestone. One trade at a time with the market’s most volatile spikers.

And there’s a specific kind of stock that I’m watching RIGHT NOW for my next profitable trade.

Only The Best Setups

These stocks are spiking hundreds of percentage points.

But certain plays are better than others.

Don’t waste time with crappy setups.

  • There’s a lower likelihood of profits.
  • That’s time we could have spent trading the REAL setup.

Ultimately, we’re looking for stocks that have a reason to spike. It’s also known as a “catalyst”.

A spiker without a catalyst is like a rocket without an engine.

Space Cadet: Do not climb aboard that rocket!

For example, all of the stocks that I shared earlier have catalysts:

  • $GETR
    • The company announced $20 million in additional financing. Already having drawn $5 million for 2024 operations.
  • $EVAX
    • Announced its plans to develop new cancer vaccines based on novel AI findings.
  • $FAZE
    • Announced a new multi-million dollar Esports deal.
  • $BFRG
    • Announced a collaboration with Lieber Institute to map the brain using AI.
  • $DWAC
    • This SPAC represents Trump’s Truth Social. As Trump continues to win republican polls, the price of this stock spikes.

These stocks are still in play.

Add them to your watchlist and track the price action.

But … We can’t trade the same 5 stocks for the rest of our lives. For one: The best trade opportunity today could come from a different spike with a new catalyst.

There’s a very simple process to find the next big spiker … 

The Right Catalysts

The catalysts that I shared above are all a little different.

Technically, there are a lot of reasons a stock could spike. Some of the most common are … 

  • More money coming in. Whether it’s financing or a bullish quarterly report.
  • IPO/SPAC plays.
  • Stocks connected to larger global events. These are also called sector momentum plays.
  • Short squeezes.
  • New contracts or business partnerships, especially with the U.S. government.
  • New potential revenue streams.

The more time you spend watching the market, the easier it gets to find the right catalysts.

It’s not as difficult as it sounds.

When it comes to these small-cap stocks, the price action is lazy until the right news hits. I can show you on the $FAZE chart.

The first green bubble on the chart shows when the news came out.

FAZE chart multi-day, 2-minute candles Source: StocksToTrade

The cause and effect is unmistakable.

Stay away from blue-chip stocks that are always announcing news.

There are too many factors at play.

Instead, wait until a lazy small-cap announces some hyped-up news. It’s like clockwork. And it’s easier to find the right stocks when your software alerts the news.

You can see it right on the chart! The news comes out, I get the alert, and the price spikes.

Stop wasting time. This market strength won’t last forever!

Take advantage while it lasts!

Cheers,

Bryce Tuohey

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 AFIB on January 24th: 

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

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