Hey traders, it’s Matt here.
Bryce shared a perfect watchlist yesterday.
Click here for that blog post.
But we still have to reserve some of our attention for what could be Monday’s biggest runner:
A first-green-day spike.
Some of the biggest market moves come from the first day of a volatile stock run. It’s pretty easy to identify the price action. But beforehand, we have no way of knowing which stock it will be.
Don’t worry, I’ll show you how to find it in real time.
I’ve been in this industry for a few years now. And in that time I’ve managed to pull $1.9 million in trading profits from the market.
We can trade the multi-day runners from Bryce’s watchlist. But imagine being first to the move of a +100% intraday spiker. And then the stock pushes higher over the next few days.
We want as many profit opportunities as possible. That’s how we build wealth.
It doesn’t come from one $1 million trade. I grew my account with thousands of trades.
- I focus on the hottest play in the market.
- I make a trade.
- Then I move to the next setup.
Here’s a chart that shows my incremental profit journey:
Source: Profit.ly
This is a marathon, not a sprint.
And it starts with one step in the right direction.
Here’s how I plan to find Monday’s biggest spiker:
Low Float
The biggest spikers have a few things in common. But the most important factor of them all is the stock’s float.
The float shows us how many shares are available for traders to purchase and sell. A low float means there’s a low supply of shares. And a low supply of shares helps the price spike higher when demand increases.
We aim for a float of less than 10 million shares.
But in reality, this is an inexact science. Sometimes we’ll find a decent runner that has a float of 12 million shares. It’s all comparative. The largest companies in the market, like NVIDIA Corporation (NASDAQ: NVDA), have billions of shares in the float. As a result, they only spike a few percentage points a day.
We’re looking for stocks that best fit our framework. Make it close to 10 million shares.
The other piece of the equation is demand.
I already mentioned it: The price spikes higher when demand increases.
Popular Catalysts
There needs to be a reason for the run: Also known as demand for the stock. And usually it takes the shape of an obvious press release.
For example, Avalao Therapeutics Inc. (NASDAQ: AVTX) spiked 620% on Thursday after announcing an acquisition and up to $185 million in private placement.
On the chart below we can see how quickly the price reacts to the news catalyst, every candle represents 3 minutes:
AVTX chart intraday, 3-minute candles Source: StocksToTrade
Every catalyst will look a little different … But the obvious value added and the resulting price action is unmistakable.
We’re seeing spikers like this every week thanks to the bullish overall market.
Three out of four stocks follow the market.
That’s why it’s SO important for us to pay attention RIGHT NOW!
Bull-Market Momentum
It’s no secret … The stock market is surging in 2024. Just look at the S&P 500 ETF Trust (NYSE: SPY) chart below, it spiked 12% already this year:
SPY chart multi-month, 1-day candles Source: StocksToTrade
And three out of four stocks follow the market.
When the market is on a bull run we have more opportunities to profit. The proof is in my profit chart. I banked during the intense 100% market rally that started in 2020.
Here’s the SPY during the rally:
SPY chart multi-month, 1-day candles Source: StocksToTrade
And here’s my profit chart during the same time period:
Source: Profit.ly
The market didn’t rally by itself in 2020 …
There was a specific government catalyst that propelled prices higher. And we’re about to see the same catalyst hit the market in 2024.
Analysts expect the event to cause a $2 trillion shock to the market. And this time, there isn’t a COVID pandemic to slow it down.
That’s right, the COVID pandemic downplayed the value of this catalyst the last time it came around. But this time, markets are already hot.
We’re about to see an insane buying spree on top of the already red-hot AI momentum.
There’s a LIVE market-brief event this coming Thursday, April 4, at 8 P.M. Eastern. That’s where you’ll find all the details. Here’s the link to reserve a spot.
I’m looking to profit off this catalyst again!
And this time we’ve got about a month to prepare. Make sure your brokerage account is set up and ready to go.
You don’t want to get left behind!
Cheers,
Bryce Tuohey