If you’re struggling to find solid trades right now — you might be looking in the wrong place…
Nobody loves penny stocks more than I do. But right now it seems like a lot of them are failing at the market open.
So unless you trade in the premarket, you’re missing out on opportunities…
But before you start trading risky strategies like premarket trading, try shifting your focus to another strategy.
I’ll explain what I see working in the market and how you can get in on the opportunities below!
Discover how you can follow the big money moves in the market here.
The Rise of Large-Cap AI Stocks
I’ve been pounding the table about watching hot artificial intelligence stocks for months…
It’s the hottest sector we’ve seen in a while and I think it could last well into fall. So I’ve been watching for penny stocks that announce BS AI-related press releases every morning…
And there have been a lot…
Yesterday it was Sonic Foundry, Inc. (NASDAQ: SOFO). The company announced a partnership … And of course the press release mentioned AI.
It was a well-timed PR, it’s a low-float trash stock, and it has a beaten-down chart … Here’s the chart from yesterday…
SOFO chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
On Wednesday I was looking at WeTrade Group, Inc. (NASDAQ: WETG) as my number one…
It also announced some AI news, it has a micro float, and it’s a disaster IPO which was a hot sector a while back.
Here’s its chart from Wednesday…
WETG chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
It had an amazing move just as I got my alert out in premarket.
But during regular market hours, what do both of those charts have in common?
They failed.
So if AI is such a hot sector, why are all the small-cap morning spikers failing?
Turn your attention to…
Buyers’ Frenzy and Large Cap Runners
Large-cap AI stocks are on fire.
And when there are trading opportunities in large caps like C3.ai, Inc. (NYSE: AI) and Microsoft Corporation (NASDAQ: MSFT) that takes traders’ attention away from penny stocks…
Both of these stocks had massive breakouts yesterday.
And NVIDIA Corporation (NASDAQ: NVDA) had one on Wednesday…
But what’s more impressive is the massive run-ups these stocks had leading up to the breakouts.
Just look at these incredible charts…
Year to date, MSFT has gained as much as 59%…
AI has gained an incredible 336%…
And NVDA has gained a whopping 200%!
This is why I’ve been writing about swing trades recently. Read the latest two Daily Accelerators below:
Know which strategy to focus on, and follow the opportunities…
If you want to get in my Swing Trade Strategy Sessions — find out how to join here.
And learn how you can follow the big money moves in the market here.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade