Hey traders, it’s Bryce here.
We’ve already seen a lot of runners this week.
Low priced stocks spiking +100%, and these are perfect setups for small-account traders.
- Monday: Strong Global Entertainment Inc. (AMEX: SGE) spiked 180%.*
- Tuesday: Golden Sun Health Technology Group Limited (NASDAQ: GSUN) spiked 150%.*
- Wednesday: Reborn Coffee Inc. (NASDAQ: REBN) spiked 160%.*
Below you’ll find a chart of the GSUN spike, every candle represents one minute.
This will give you an idea of the volatility that we’re working with:
SGE chart 2-day, 1-minute candles Source: StocksToTrade
We’re not trying to invest in the long term success of these companies. Instead, we limit our exposure to the volatility by trading specific price action for short term gains.
And there’s a stock on our radar right now that could blow those moves out of the water …Â
It all goes down this Friday.
Friday’s are notoriously bullish because the stock market is closed over the weekend:
- Short sellers usually buy back shares and close their positions, just in case the stock gaps up on Monday.
- Long-biased traders usually buy shares to capitalize on the same Monday gap ups.
All of that buying can lead to massive spikes in the stock market.
And thanks to popular trade patterns, we can track this momentum to find the best profit opportunities.
Friday’s #1 Setup
There is a framework that the most volatile stocks can follow. It’s based on human psychology.
People behave predictably during times of high stress, like when they have a few thousand dollars in a stock that’s spiking +100%.*
Remember: On Fridays, short sellers are nervous about Monday gap ups. We can expect them to buy back shares. That’s a perfect example of human predictability in the market.
That sentiment translates into stock trading patterns.
Matt Monaco and I learned these trading strategies from Tim Sykes. And we’re not the only ones using them right now. Small-account traders are killing it in this market.
See the Tweets below:
Beautiful play on $REBN in @3.18 out @3.58, back in 3.67 out at 3.98. One of the better plays I've done lately and pretty sure its gonna go again. Got outta my head today KISS @timothysykes @tbohen @StocksToTrade
— TwitchTheTrader (@TwitchyTrader) May 8, 2024
Great Monday trades w/ $TCBP and $XBP for a $252 profit. Best day yet! Also had my first profitable month in April! Thanks, @tbohen and @timothysykes, for all your content, and extremely thankful for the DIT community @StocksToTrade. My focus & dedication is now off the charts!!
— Gabe Simmons (@Gabes088) May 8, 2024
This week has been especially hot. Major market indices have shown us a lot of strength. The S&P 500 ETF Trust (NYSE: SPY) put in an impressive rally toward all time highs.
Here’s why that matters:
There’s an indirect relationship between the stock market and our low-priced niche. When the larger market is hot, the plays in our niche are stronger.
Take a look at the SPY chart below, every candle represents one trading day:
SPY chart multi-month, 1-day candles Source: StocksToTrade
The overall market rally this week is one of the reasons we’ve seen consistent +100% intraday runners like SGE, GSUN, and REBN.
It all points toward a MASSIVE runner this Friday.
Tonight’s Prep Session
I already mentioned a bit about the patterns that we use to trade these runners …Â
This isn’t rocket science, but it’s not exactly intuitive either.
Remember that people are predictable, your natural stock market “intuition” is more likely to lead you astray. As traders, we have to step back and recognize the overall emotions behind the move.
Now, there are a ton of resources out there that you can use to learn these patterns:
But it’s doubtful you’ll have time to learn all of this AND recognize Friday’s #1 setup in time. That’s why we’re holding a FREE live stream tonight at 8 P.M. Eastern.
Traders will learn:
- The #1 stock we’re watching as the market opens this Friday.
- The pattern that we want to use to trade it.
- Proper risk management in case something goes wrong.
- Nothing is 100% certain in the stock market.
- How to take profits.
Tim Sykes and my trading buddy, Jack Kellogg are hosting the stream tonight.
Jack is a legendary small-account trader with $12.6 million in recorded trading profits (that number includes losses).
And of course, Sykes taught us everything that we know.
>> This is your FREE ticket to attend TONIGHT @ 8 P.M. Eastern <<
Cheers,
Bryce Tuohey
*Past performance does not indicate future results