Top Stocks to Watch in May 2024

My top stocks to watch in May 2024 have the kind of volatility that smart traders target. Every day, week, and month I survey the entire market, looking for stocks that are trending in one direction or another. Our job is to identify the stocks that have the potential to make moves and be ready to trade them if those opportunities come about.

7 Top Stocks To Watch

My top stock watchlist picks for May — based on pattern, price action, and catalyst — include the following:

Stock Ticker	Company	Performance (YTD)
NASDAQ: SMCI	Super Micro Computer Inc	+ 160.21%
NASDAQ: PRZO	Parazero Technologies Ltd	– 4.84%
NYSE: SNAP	Snap Inc	– 1.55%
NASDAQ: MULN	Mullen Automotive Inc	– 60.25%
NASDAQ: APP	Applovin Corp	+ 80.61%
NASDAQ: CAUD	Collective Audience Inc	– 54.03%
NASDAQ: SBFM	Sunshine Biopharma Inc	– 96.81%

The stocks on this list are some of the craziest movers on the market …

Only trade these stocks if you have a solid plan and an understanding of the risks involved. I don’t trade until I see a setup I like.

Jump ahead to get to my trading plans for these top stocks!

Top Stocks to Watch Today

My top 7 stock picks are:

• NASDAQ: SMCI — Super Micro Computer Inc — The Volatile Mega-Cap Stock That’s Set For Earnings
• NASDAQ: PRZO — Parazero Technologies Ltd — The Israeli Drone Safety Penny Stock 
• NYSE: SNAP — Snap Inc — The Potential Winner of the TikTok Ban
• NASDAQ: MULN — Mullen Automotive Inc — My Troll Meme Stock Pick for the Bagholders Out There
• NASDAQ: APP — Applovin Corp — The IRIS Swing Pick That’s Been Pulling Back
• NASDAQ: CAUD — Collective Audience Inc — The Partnership News E-Commerce Penny Stock
• NASDAQ: SBFM — Sunshine Biopharma Inc — The Biotech Penny Stock With a Tiny Float

Remember — we’re traders, not investors. You need to keep that mentality in mind even if you’re a swing trader.

That means:

• Always having a trading plan — and sticking to it.
• If a stock drops below risk, you need to sell. Only losers hold onto losers.

There are some stocks on this watchlist that are day trade only. Holding onto these volatile small-cap stocks overnight can lead to some nasty surprises, like when a biotech penny stock does a new share offering to cash in on its gains.

These penny stocks aren’t directly impacted by the larger market …

But over the years I’ve noticed an indirect relationship that’s important to understand.

When major indices show strength, it leads to more plays in the penny stock niche.

We still only want to trade the best setups. Here they are … 

#1: Super Micro Computer Inc (NASDAQ: SMCI) — The Volatile Mega-Cap Stock That’s Set For Earnings

My first stock pick is Super Micro Computer Inc (NASDAQ: SMCI).

SMCI joined the S&P 500 on March 18. That’s BIG news for a mega-cap stock. The S&P is an index that follows 500 large-cap stocks in the market.

Considering SMCI’s incredible bullish momentum this year, the news doesn’t come as much surprise.

Now, SMCI is currently trading above $700. We usually trade low-priced stocks because:

• We can load up on shares.
• The low price helps the stock spike higher from a percentage perspective.

Higher priced stocks like SMCI aren’t known to surge like volatile penny stocks.

But the AI and tech sectors are so hot in 2024, we’re seeing some INSANE moves from big stocks. SMCI and NVDA are great examples.

Right now I’m watching SMCI because the chart looks a lot like a penny stock.

And in a lot of ways, SMCI acts as a tech sector leader. We can gain insight on tech trade opportunities in our low-price niche by watching setups like SMCI.

In 2024, prices spiked 330%* despite starting the year above $250 per share.

Look at the insane move so far this year. On the chart below, every candle represents one trading day:

I know that this runner is out of bounds for most small-account traders.

But … When large-cap stocks behave like volatile penny stocks, we CAN trade them for lower prices using options.

Now, at the mention of “options” a lot of traders shy away. But it’s not as confusing as you might think.

An option is a contract that gives you the right to buy or sell shares of a stock.

So, theoretically: If you think SMCI is going to trade higher in the future, you could buy a contract and then sell it after SMCI spikes without actually buying any shares of SMCI.

The value of the contract is what we’re trading, not the actual stock.

It’s easier said than done, but there IS a process for profits.For example, Ben Sturgill is a renowned options trader with verifiable profits. Take a look at his process.

There are so many opportunities to profit in this 2024 market.

Pick a strategy that makes sense to you and hit the ground running!

#2: Parazero Technologies Ltd (NASDAQ: PRZO) — The Israeli Drone Safety Penny Stock 

My first stock pick is Parazero Technologies Ltd (NASDAQ: PRZO).

Unfortunately, the Middle Eastern conflict escalated in April, specifically between Israel and Iran. 

Israel had attacked an Iranian consulate early in the month, and we learned of an incoming Iranian retaliatory strike the Friday of April 12.

The news is somber.

But as traders, we have to pay attention to global events to gain an edge in the market. For example, stocks like PRZO have a history of spiking with relation to the war in the middle east.

There’s a chart below of the April price action, every candle represents one trading day:

PRZO is an Israeli owned AI-drone company.

In October 2023 — during the initial Hamas invasion of Israel, the stock spiked 460%.* 

Interestingly enough, the company announced bullish news on Friday, October 6, the day before the Hamas attack. That’s why on the chart below, you can see the spike starting a day early.

Every candle represents one trading day:

Keep an eye on this historic runner.

The conflict overseas doesn’t seem to be cooling down.

#3: Snap Inc (NYSE: SNAP) — The Potential Winner of the TikTok Ban

My first stock pick is Snap Inc (NYSE: SNAP).

TikTok is on the chopping block in 2024.

President Joe Biden signed a bill on Wednesday, April 24 that forces the U.S. TikTok to find a U.S. owner within nine months … or leave the U.S. entirely.

SNAP is a social media platform that’s already popular and headquartered in the U.S., Santa Monica, California.

On Thursday, April 25 the company announced bullish earnings during after hours, share prices spiked 40% as a result.

On the chart below, every candle represents one trading minute:

SNAP isn’t eyeing a TikTok purchase that we know of. But it’s already a direct business rival of the social media giant.

• If TikTok leaves the U.S., Snapchat will likely pick up users.
• If someone in the U.S. buys TikTok, the software switch could still cause users to leave TikTok. Similar to the debacle that happened when Elon took over Twitter.

Keep an eye on other U.S. social media companies too, like META Platforms Inc. (NASDAQ: META) or the newly IPOed, Reddit Inc. (NYSE: RDDT).

#4: Mullen Automotive Inc (NASDAQ: MULN) — My Troll Meme Stock Pick for the Bagholders Out There

My first stock pick is Mullen Automotive Inc (NASDAQ: MULN).

This stock is a legendary runner from 2020.

It’s an EV play. And EV stocks were hot during the pandemic.

That’s when Tesla Inc. (NASDAQ: TSLA) surged to insane heights. And it’s when the U.S. government started the push toward a larger EV market.

Some of the stocks that spiked during that time are still doing well. TSLA is a great example.

Other stocks … Not so much.

And this is why it’s so important to day trade these runners instead of investing. We don’t believe in the future of the company. We just play the volatility.

I kid you not, there are still bagholders with shares at the top of the spike in 2020. Take a look at this multi-year selloff, on the chart below every candle represents one day:

The price never actually traded around $400k per share. That’s a ratio issue due to a 1-for-100 reverse split at the end of 2023 … 

Speaking of which, StocksToTrade shows that MULN has a float of only 6.4 million shares post-reverse split. The low supply of shares helps prices spike higher when demand increases. We aim for anything below 10 million shares. It ensures volatility.

As traders, we need volatility to profit.

Which means, there are profit opportunities on MULN right now. But don’t join the long list of bagholders.

We have to stick to our trade plan. Take profits before the momentum switches.

If you don’t know how to craft a trade plan, take notes from the XGPT trading bot. It nailed the most recent move on MULN, trading plan included.

Take a look below at the alert we got on April 29 before the market closed:

>> Here’s where you can get the next XGPT trade alert <<

MULN is still in play as a volatile stock. Plan your trades carefully!

#5: Applovin Corp (NASDAQ: APP) — The IRIS Swing Pick That’s Been Pulling Back

My first stock pick is Applovin Corp (NASDAQ: APP).

IRIS is our AI stock picker.

Before I learned about the profit opportunities among small-cap spikers, I would swing trade larger stocks.

It’s still a viable strategy. Especially in this insane 2024 market. And thanks to AI, I was able to automate it.

IRIS scans the market to find stocks that match my swing trading framework.

Now, some of these plays are higher priced … That’s because they’re real companies with real financials and revenue.

Compared to volatile penny stocks, which are usually just crap businesses in disguise. That’s why we swing trade higher-priced plays and only day trade volatile penny stocks.

A trader’s profit angle in the market depends on what works best for them. I included both kinds of opportunities in this watchlist because there’s SO MUCH opportunity right now.

The price gapped up on February 15 after fourth-quarter financial data surpassed expectations. 

The company attributed a fair chunk of its success to a brand new AI advertising engine. Ever since the announcement, prices continued to climb. The entire move already measures 65%.

Prices pulled back a bit in April, but it could be setting up a perfect entry above support around $65. Take a look at the chart below, each candle represents one day:

The intraday moves for higher priced stocks aren’t as explosive. That means we don’t have to watch our swing-trade positions as closely.

This is a viable strategy for traders right now. It all depends on what works best for YOU.

APP is IRIS’s favorite swing trade setup right now.

Click here for the full trade breakdown.

#6: Collective Audience Inc (NASDAQ: CAUD) — The Partnership News E-Commerce Penny Stock

My first stock pick is Collective Audience Inc (NASDAQ: CAUD).

On April 29 the company announced a business partnership with Insticator. The news especially boasted about Insticator’s 35 million monthly consumers.

A partnership of that size is a big catalyst for a penny stock. We don’t know if anything will ever come of it. But it sure looks nice on paper.

And the price reacted well to the announcement. That’s a hint that we can trade the follow-up volatility.

CAUD launched 120%* after the news came out. And the price is consolidating sideways … 

StocksToTrade also shows that the float is only 11.5 million shares. That’s close enough to our goal of 10 million shares or fewer. This is an inexact science, sometimes we can bend the rules.

My plan is the same as it is on BDRX … wait for the price to push toward the highs with strong trading volume.

#7: Sunshine Biopharma Inc. (NASDAQ: SBFM) — The Biotech Penny Stock With a Tiny Float

My first stock pick is Sunshine Biopharma Inc. (NASDAQ: SBFM).

I’ve mentioned the importance of a low float already in this blog.

But SBFM takes it to a whole new level. StocksToTrade shows the float is only 606k shares.

And this runner is in the biotech sector. We’ve seen biotech stocks spike higher ever since early 2023. For traders, the sector’s volatility is only matched by AI runners.

SBFM hasn’t started to spike yet … we’re still early.

The stock’s history already shows runs in 2024.

• 210%* in March.
• 110%* in April.

Get ready for May.

Top Stocks Under $5

Hot sector penny stocks — whether we’re talking AI penny stocks, biotech penny stocks, or another sector attracting a lot of news — are something traders should always be looking at. The allure lies in the potential for substantial returns on investment, as even minor developments or positive news within these sectors can lead to significant price jumps.

It’s important to proceed with caution and a well-thought-out strategy. The inherent volatility of penny stocks, combined with the speculative nature of emerging sectors like renewable energy and tech innovations, underscores the importance of a meticulous approach. Before diving in, ensure you’ve done your due diligence, looking past the initial excitement to assess the true potential and risks of these ventures. It’s wise to trade these stocks rather than invest long-term, given their unpredictable nature.

Success in trading hot sector stocks priced under $5 hinges on a selective and strategic approach. The goal is to tap into their explosive growth potential while implementing robust risk management practices. By zeroing in on companies making news in their specific niches, traders can seize opportunities for disproportionate gains. This strategy, coupled with a disciplined approach to maintaining a tight investment strategy and promptly cutting losses, can pave the way for trading success in these dynamic market segments.

What Do You Need to Trade Stocks?

The biggest thing you need to become a self-sufficient trader is something money can’t buy…

Patience.

Everything else is easy enough to come by.

Most brokers don’t charge commissions when you buy listed stocks — which is every stock on this list.

You can see the brokers I recommend here.

What else do you need?

You’ll need a trading computer and decent internet. You’ll also need a powerful trading platform like StocksToTrade…

StocksToTrade puts top-of-the-line charts and stock screening at your fingertips. It’s got a built-in news scanner that puts earnings reports and news that move stocks in one place.

We think you’ll see the difference immediately. Get your first 14 days here for only $7.

Then comes the hard part…

You need to learn patterns. You need to find out which strategies work for you. You need to put in screen time…

Paper trading is a good way to get your feet wet. StocksToTrade can do that too.

You need to make trading plans and track your trades. I know, it’s a lot. That’s why I’ve designed the best mentorship program out there — Daily Income Trader.

Our trading community will bring you live webinars, strategy sessions, and the chance to ask questions of me and other top traders.

My goal is to teach you how to think for yourself and trade through any kind of market.

Here’s one of the biggest things I teach you to do… 

How to Find Your Top Stocks to Watch: 5 Tips for Every Day

The best traders don’t believe in ‘hot stocks.’ They watch what the market is doing every single day.

There’s no trick to it. Building a daily watchlist comes down to five easy steps.

#1: Run Your Scans

You know what’s moving by setting your stock screener to pick up the right stocks.

I run scans all through premarket, looking for stocks up at least 10%, on decent volume and a catalyst that isn’t complete garbage.

The market is a game of supply and demand. A stock screener is the best way of measuring that demand.

#2: Know Your Catalysts

Crappy penny stocks will always have press releases and celebrity tweets when they’re running. It’s your job to know what’s fluff and what isn’t.

Luckily, it isn’t hard. Is the market reacting well to it? Then it’s probably decent news.

We have an add-on service specifically dedicated to the news that moves stocks. It’s called Breaking News Chat — and it can be your secret weapon. 

#3: Study the Charts

Studying charts can be the difference between randomly trading a stock and seeing a good entry.

How do I know that most days TSLA starts the day red it often finishes green? It’s because I’ve studied its charts.

#4: Look for Volume

Volume is the biggest indicator of price action.

You can trade a stock move with no news. But you probably don’t want to make a trade with no volume.

This is another thing to study when you’re looking at a chart.

Take a look at a stock’s biggest moves. How much volume does it get when it’s making a move? 

#5: Learn From Other Traders

Never copy another trader’s trades. If you’re last in on a trade, you’ll only make money by luck. And you sure won’t learn to trade for yourself.

The training we offer at StocksToTrade is designed to help you become a self-sufficient trader. We show you how we come up with our trade ideas, we don’t give them to you.

Profit and loss isn’t the mark of a good trader. It’s the planning and execution you put in.

We can help you get there in a few different ways:

• My Weekly Watchlist: On Sundays, my weekly watchlist is free on StocksToTrade’s YouTube channel.
• StocksToTrade Advisory: This is an intro to my trading approach — with premarket sessions, a weekly watchlist, and an in-depth monthly report.
• StocksToTrade Daily Accelerator: This is my no-cost daily newsletter, filled with mindset tips, the best plays of the week, and whatever else I think needs sharing.

Conclusion

I’ve shown you the work that goes into building a watchlist…

And I hope I’ve scared you enough that you don’t take these picks as recommendations!

Trading is something you do at the same time as millions of other people. Having stock picks is as silly as taking cue cards on a date…

And it works about as well.

Your trading success doesn’t depend on any ‘secrets’ I can tell you. The only thing it depends on is you learning about your own trading style.

Treat this watchlist as a starting point. Keep on working on your own watchlists until they fit the way you trade.

What do you think about the stocks I’m watching this month? Have you traded any of them? Let me know in the comments!

*Past performance does not indicate future results