Howdy, traders. It’s Bryce here.
I hope your Monday was as good as mine. How about that Redbox Entertainment Inc. (NASDAQ: RDBX) short squeeze?
It kept both me and Matt glued to our screens! Gotta love Money Mondays…
Today, we’re gonna talk about a specific pattern that I’ve been seeing a lot of lately.
And it’s more predictable than a one-off short squeeze. In fact, there are signs that it’s coming days in advance.
Let’s take a look at exactly what it is and how you can spot it before it takes off…
The Litte Known Day 3 Surge Trading Pattern
It’s common for long-biased traders to favor breakouts as a go-to trading pattern. After all, who doesn’t love to see stocks go up?
I know, I know, the few cynical short sellers of you out there who just love to see red.
Learn the secret Tim used to turn a small investment into a fortune
30 days..
That’s all you need to get started on your journey to financial freedom.
And it all starts with Tim Sykes’ #1 pattern for beginners.
HINT: This is the same pattern Sykes used to make more money in one day than what his parents made in an entire year…. All while he was in high school.
Well thankfully, there’s a way that longs can benefit from the overeager nature of some shorts. And that’s where the Day 3 Surge strategy comes in.
So what is it? Let’s get into the three tell-tale signs of a Day 3 Surge…
#1 – It Runs on Day 1
When a ticker puts in a first green day, that doesn’t necessarily mean it’s done making gains. You should take a first green day as an opportunity to add it to your watchlist. Especially if the ticker holds its highs into the close of the trading day.
But what makes a Day 3 Surge different from a Multi-Day Runner? The second trading day will tell you.
#2 – It Does Nothing on Day 2
That’s right, it does absolutely nothing on day two. Zilch. Nada. A multi-day runner can run for several days in a row. But a Day 3 Surge will have a day of rest. And that’s where the shorts come in. They think the ticker is down for the count.
So the stock trends sideways most of the day, and maybe it even ticks up just a little bit. This is how you know that shorts weren’t able to take it down.
#3 – Day 3 is When the Magic Happens
If the stock had substantial news on the first day when it broke out, it very likely brought in new bidders who heard the news later and want to to get in late. This spells danger for shorts.
The Next 46 Days Can Put Your Account on the Fast Track
With many stocks crashing left and right, many people are having a difficult time growing their trading accounts right now.
But this coming Thursday July 28th at 8 p.m. ET…
Tim Sykes will reveal a strategy that’s so powerful he believes traders have the potential to grow a $1,000 account into a $10,000 account in just the next 46 days!
As soon as you see the stock break the highs formed over the first two days of this pattern, with high volume, you know the shorts it collected on day two are in trouble. If it holds that breakout, a major short squeeze is usually what happens next.
I showed you how Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) recently saw Day 3 Surge action in this video.
I also told you this past Friday that Vertical Aerospace Ltd. (NYSE: EVTL) had the potential for a Day 3 Surge if it broke past $7 on Monday. Indeed, it did break past $7 yesterday and hit an intraday high of $8.31!
Conclusion
Once you’ve been trading for a while, you start to notice when things change in the market. And you notice them a lot faster.
That’s what helps you capitalize on opportunities that other traders miss. If you learn from a veteran while you’re still a newbie, your knowledge account can grow much quicker.
Right now my mentor Tim Sykes senses an opportunity in the markets that won’t last forever. If you want the opportunity to 10x your account in 46 days, Tim Sykes will reveal the strategy that can help you do that this Thursday, July 28 at 8 p.m. Eastern. Don’t miss it!