Hey traders, it’s Bryce here.
You don’t NEED to trade to have a good time in the stock market.
Obviously, it’s nice to make money.
But the drama in this industry is enough of a reason to pay attention. I’m still laughing about yesterday’s spiker.
I know that it looks like meaningless volatility when a trashy tech company spikes more than 300% in a single morning. But we can track this volatility.
There’s a reason for the spike.
You won’t find the answer from CNBC or YahooFinance. Those chumps don’t care about small-cap stocks that are capable of spiking hundreds of percentage points.
Either they don’t care, or they don’t understand …
Personally, when I look at this chart I see several MASSIVE profit opportunities:
HOLO chart 1-day, 1-minute candles Source: StocksToTrade
The news came out at 5:20 A.M. Eastern. We had all morning to build a position.
Some traders took profits during premarket. But you could have also played the intraday dip and rip OR the consolidation and high-of-day breakout.
And here’s the best part: It’s not the only runner in this market. We see plays like this every single week in 2024. Major indices continue to push all-time highs. And our niche is stronger when the market is hot.
Take advantage of this momentum while it lasts!
Analyze the HOLO spike. It will prepare you for the next big runner this week!
MicroCloud Hologram Inc. (NASDAQ: HOLO)
Stocks in our niche will spike when they announce bullish news.
Something like:
- Government contracts
- New business ventures
- Celebrity endorsement
- Extinguished debt
But there’s another reason a small-cap stock might spike. And in some ways, this second reason is more powerful than a bullish business announcement.
The short squeeze.
Everybody … Pour one out for the short sellers that blew up on HOLO.
Here’s how it went down:
There’s a popular strategy among small-cap traders right now. They target the market’s worst stocks and short the price action. Short sellers make money when the price of an asset goes down.
Want to be alerted to hot trade ideas before anywhere else?
Check out the alert for HOLO on February 7th:
This is a tool you’ll want in your trading toolbox.
Logically, this is a pretty good strategy. There are always crappy stocks spiking and then giving back all of their gains. They’re crappy stocks, what do you expect?
However … Any bullish momentum could cause some to panic and get out. Short sellers have to buy shares to exit their position. That adds to the bullish momentum.
And if there are too many short sellers blowing up, the stock erupts into an uncontrollable bull spike.
HOLO Squeeze
On February 2, HOLO announced a 1-10 stock split.
A stock split increases the total number of shares and dilutes prices. The company is still technically valued the same, but the difference in share price attracts volatility.
From a degenerate short seller perspective, that might look like an easy way to make some money. “Oh the share price goes down? Let me just short it.”
So now you’ve got a crappy company (HOLO) trading lower on a stock split with a bunch of short sellers trying to ride prices lower.
All it takes is a little bullish momentum to ignite the short-squeeze explosion …
On February 7 the company announced its plan to join the Communications Industry Association.
Here’s what that means: Absolutely nothing lmfao.
But like I said … All it takes is a little spark.
Yup $HOLO is now a quadruple from my premarket video https://t.co/rekohSAbFg which EVERYONE should watch…thank you again short sellers for your extreme narrow-mindedness, please NEVER change! 🙏🙏🙏🙏🙏 pic.twitter.com/TtnjNbPHv1
— Timothy Sykes (@timothysykes) February 7, 2024
There will be another big spiker this week.
Don’t miss out on the 2024 momentum. When the larger market is hot, we have more opportunities to profit.
The S&P 500 ETF Trust (NYSE: SPY) pushed to new all-time highs yesterday …
SPY chart multi-month. 1-day candles Source: StocksToTrade
But I don’t know how long this strength will last.
The market ebbs and flows. There’s always a possibility it pulls back next week …
The Next Big Opportunity
Keep an eye on HOLO. There’s always a chance that it pushes higher.
But the real profit opportunities will come from the next small-cap stock that has yet to spike.
You saw HOLO’s chart. The best spikes start in the morning during premarket.
That means, there’s a runner on the move right now!
And we’re tracking the price action LIVE.
The stock price can move fast. And we want to buy shares at the perfect time. Live streams help us cut through market latency.
It’s maybe the most important tool for new traders in this niche. No one teaches this stuff in school. Traders either learn it by themselves, or they watch a professional to speed up the learning process.
I chose live streams.
Here’s a link for the ones that I watched.
Pay attention while the market is open! The more exposure you get, the faster this will start to click.
And there’s always the chance to trade while you learn. We cover the best setups in real time.
Cheers,
Bryce Tuohey