We barely finished the ‘war on naked short sellers’ theme and we already have another one starting…
But this one could be a little different.
It could be news dependent like we saw in the last hot theme…
Or it could be a truly hot sector.
This is one of the mainstream topics across the entire market right now.
And stocks in this sector have already started running.
I’ll share which ones I’m watching and why below. Plus, I’ll share what to look for on the charts and how you can find them yourself…
Tim Sykes is hosting an all-day trading webinar TODAY! And multiple guests will join him LIVE!
This Is The Next Hot Sector To Watch
This is why I think more companies could announce similar news hoping to boost their stock price. Just like we saw with the naked short-selling plays…
But this theme could also spill over and spark the entire artificial intelligence sector.
And if we get that, it changes the process from looking for news plays to looking at a specific sector.
Friday we already saw some artificial intelligence stocks pop off …I’ll show you the charts and what I like about them shortly … But first…
How Can You Find Hot Sector Stocks?
To find hot sector artificial intelligence stocks, my criteria will include:
- Stocks in the technology sector.
- Volume of over 500,000 shares.
- A percent change of 10% or more.
- Between $1-$20 per share.
Once I have a list of stocks I can flip through the charts to find a pattern I like.
That can either be a beaten-down penny stocks chart that we’ve seen working in January.
Or it can be a more expensive stock close to a breakout level.
Check out SoundHound AI, Inc. (NASDAQ: SOUN). It’s a beaten-down penny stock…
It’s also close to a multi-month breakout … Watch this AI stock for a potential breakout over $2.
C3.ai, Inc. (NYSE: AI) is a more expensive stock that just had a multi-month breakout and filled the gap on the daily chart.
Keep this one on watch for more potential upside momentum.
BigBear.ai Holdings, Inc. (NYSE: BBAI) is another beaten-down penny stock chart that already had a January jump.
Now, I’ll watch to see if it can get over the high of $3.85 it made on January 12.
For more of what I’m watching in the market every week, watch my market update videos.
Have a great Money Monday, everyone! See you back here tomorrow.
Lead Trainer, StocksToTrade