Sometimes a stock makes headlines for all the wrong reasons…
And instead of collapsing, it takes off.
To the average trader, it looks irrational. To the prepared trader, it’s a repeatable pattern hiding in plain sight.
The high-quality, high-probability pattern that I’ve found recently has been rewarding us big on Mondays…
If you’re not already using this setup, you should be!
Let me explain how it works…
Every Monday, the market kicks back into gear after its weekend nap… And that reset creates a unique opportunity!
As the first session of the week gets started, there’s a specific pattern we look for, one that appears again and again with uncanny consistency.
And it has delivered some unbelievable gains!
Look what happened this past Monday…
NanoVibronix (NASDAQ: NAOV) announced it had been granted a new patent, and the stock took off, gaining 168%*!
These are the kinds of morning spikes we hunt for every Monday!
Now it’s time to learn how to spot them for yourself!
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
A lot of massive price action isn’t about fundamentals or earnings.
Instead, it’s created by a force that grabs attention, fuels emotion, and triggers explosive volatility.
Many traders see controversy and think: Danger. Volatility. Stay away.
But if you’ve been in the game long enough, you know something strange happens when the spotlight shines on a stock for the “wrong” reasons…
Sometimes a hot-button issue doesn’t sink it… It launches it.
Table of Contents
Why Controversy Moves Markets
Here’s the formula every trader should know:
Attention = Volume. Volume = Volatility.
And volatility is a trader’s best friend.
When a company becomes the center of a public firestorm, whether it’s politics, lawsuits, or marketing that rubs people the wrong way, it grabs attention.
Case in Point: Trump Media & Technology Group (NASDAQ: DJT)
Anything tied to Donald Trump is guaranteed controversy, and DJT stock shows us exactly how the attention, good or bad, can be a good thing.
Courtroom drama, political headlines, debates, or even a tweet can send this stock flying.
These moves aren’t about fundamentals or revenue growth but about sentiment. And as long as Trump generates headlines, speculative rallies in DJT will keep coming.
I mean, look how volatile this ticker has been since it IPO’d…
DJT 2-Year, Weekly Candles Chart; SteadyTrade
Emotion Is Fuel
Markets are built on emotion — fear, greed, anger, and hope.
When controversy strikes:
- Bears pile in, betting on the downside.
- Bulls see a dip-buying opportunity.
- Momentum traders just want to ride the chaos.
That mix creates wild swings…
And if the news doesn’t inflict real damage, it can actually turn into a bullish setup.
Recent Example: American Eagle Outfitters (NYSE: AEO)
On September 3rd, AEO ripped 25% after reporting higher-than-expected earnings. But it wasn’t earnings alone…
Their denim campaign with actress Sydney Sweeney set off a culture war. Outrage turned viral, the collection sold out in days, and management credited it with record-breaking new customer acquisition.
The result?
The stock went vertical by 25%* after earnings dropped.
AEO is still a “buy” for me…
After a slight pullback, I see room for a push into the mid-$20s.
AEO 5-Day, 5-Minute Candles Chart; SteadyTrade
Remember, Not All Attention Is Good
The key is to separate noise from destruction.
- Good controversy = attention without real damage (lawsuits, bold marketing, polarizing leaders).
- Bad controversy = fraud, accounting issues, or anything threatening long-term survival (think Enron, Theranos).
My Final Thoughts…
Scandal isn’t always a red flag for a stock. For disciplined traders, it can be a green light.
The next time a stock dominates headlines for the wrong reasons, don’t look away.
Check the float (the lower the better for big moves). Check the chart. Check sentiment.
If the ingredients line up, you could be staring at your next high-probability trade.
Because in the game of trading, negative attention doesn’t just create chaos…
It creates opportunity.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Is your trade idea a box checker?
Are you ready for what’s coming this afternoon?
Don’t let this bad habit destroy your account.