Lung-Cancer Swing Trade:

Hey traders, it’s Bryce here.

We already have eyes on a massive spiker this week.

Now, I know that most of our plays follow lower-priced volatility … 

But right now we’re watching a REAL company. Don’t worry, the price is still pretty low, around $20 per share. And this is a great opportunity to explore a swing trading strategy.

Swing-trading stocks usually move with less volatility. Plus, they can have more potential upside because the company is larger, it’s an actual business. Whereas penny-stock companies are mostly failures.

This week’s #1 swing-trading stock, it’s in the biotech sector and the company just announced bullish news regarding its treatment for lung cancer. Any kind of bullish news about cancer treatment makes for some of the best catalysts for biotech stocks.

Here’s why: Cancer is a scary disease, and it’s one of the most well known. Any potential treatment has the ability to alleviate that fear and also lends a lot of value to the company.

The stock market runs on fear and greed.

This stock also has a great history of running. And as my mentor, Tim Sykes, always says, “past spikers can spike again.”

This week’s hottest runner also spiked in May earlier this year. Prices surged 380%*. And over the next few months, the stock pushed even higher.

Yesterday was day one for the newest spike. And prices already ran 70%!

Take a look at the chart below, every candle represents one trading day:

This is a perfect swing-trade opportunity for traders.

But this volatility can still be dangerous.

Here’s how traders in our community are finding the best entries:

Swing-Trading Framework

Matt and I learned to trade from Tim Sykes, who notoriously only day trades penny stocks.

But, thanks to the community of traders that Sykes has fostered in the last two decades … I’ve managed to pick up swing-trading tips from guys like Tim Bohen.

Bohen was a mid-cap swing trader before Sykes showed him the profit opportunities among +100% penny-stock runners … 

Traders who join our community have access to multiple millionaire traders through live streams and the group chat. They also have access to multiple trading angles. That’s what’s great about trading, you get to find what works for you!

But I digress … let’s get down to his week’s most exciting runner AND our plan to trade it.

Summit Therapeutics Inc. (NASDAQ: SMMT) is the biotech stock that’s spiking with bullish lung-cancer news.

There’s a chart of Monday’s price action below. The 70% spike started during premarket.

Every candle represents one minute:

SMMT chart intraday, 1-minute candles Source: StocksToTrade

This price action might look random, but volatile stocks can actually follow a specific framework.

It’s all based on human psychology. People are predictable during times of high stress, like when they have a few thousand dollars in a volatile biotech stock.

Our job as traders is to step back from the emotions and recognize the patterns as they manifest in the market.

My Trade Strategy

I’m paying attention to the last spike from SMMT.

The price action won’t behave exactly the same, but it gives me an idea of how this stock moves.

On the daily chart below you can see that the price dipped after the initial run in May.

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

My goal with SMMT is to wait for the multi-day price action to find support.

• I like the catalyst.
• I think that the history of spiking is great.
• But if I tie up cash in this play too early, I’ll have less conviction and it’ll stress me out.

Remember, this is a swing trade. We don’t have to attack this stock as quickly as we would for a volatile day trade.

I’m also using the Iris swing-trading bot to give my trade thesis more strength. Iris is an AI that Tim Bohen programmed with his swing-trading framework.

>> Use Iris to build smart positions on stocks like SMMT <<

And keep an eye on the price action this week. Monday was just day one … 

Cheers,

Bryce Tuohey

*Past performance does not indicate future results