Something spiked big the other day…
The chart looked clean, the move looked explosive, and at first glance, it looked like a huge missed opportunity…
But actually, I’m relieved I didn’t buy that stock or advise those in my Pre-Market Prep session to buy it.
On the other hand, the setup I’ll urge traders to take over and over again comes only on Monday mornings.
Haven’t heard about it yet? Listen up!
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 that appears again and again with uncanny consistency.
And it has delivered some unbelievable gains!
Look at our huge winner from this past Monday…
After announcing a major blockchain deal, Maison Solutions (NASDAQ: MSS) skyrocketed over 600%*!
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself! Don’t miss the next one!
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
What looks like a great trade at first sight can sometimes be a complete dead end….
And if you don’t know how to spot the difference, you risk throwing money at trades that were never worth your time.
Table of Contents
Integral Ad Science (NASDAQ: IAS) Goes Vertical
Last Wednesday morning, IAS suddenly shot higher.
That kind of move always grabs attention — especially if you’re hunting momentum trades like the Monday Setup, the Morning Fader, or the RCT pattern that have been crushing lately.
But while the surge looked tempting, IAS wasn’t a trade. Here’s why…
The Problem: It Was a Buyout
Buyout stocks can trick traders into thinking they’ve found the perfect pattern. The chart looks good, the candle looks strong, but it’s just a mirage.
Here’s how to spot a buyout fast, before you waste time (and money):
- Instant Spike: The stock gaps or jumps sharply within minutes. Unlike true runners, it doesn’t keep climbing. It’s a one-and-done move.
- Volume Surge, Then Silence: You’ll see massive volume on the announcement, then activity falls off a cliff. That’s just the news being priced in.
- Price Parks Near the Offer: Instead of running, the stock hovers right around the buyout level.
- No Fresh Catalysts: Momentum thrives on ongoing news. Buyouts don’t provide that. Once the offer is out, the story’s over.
That’s exactly what happened with IAS….
Wednesday morning, the company announced it was being taken private at $10.30 per share. It instantly shot up by close to 25%*, stalled, and has gone nowhere ever since.
Here’s what that looks like:
IAS 2-Day, 5-Minute Candles Chart; SteadyTrade
Why Trading Buyouts Is a Waste of Time
- The Illusion of Gains: By the time you see the spike, the market’s already priced in the premium. The move is done.
- Limited Upside, Heavy Risk: Hoping for a bidding war rarely pays off. If the deal falls apart, you’re left holding the bag.
- Capital Stuck: Deals can take months to close. IAC’s buyout is “expected” to wrap up before the end of 2025… No one knows when exactly. Meanwhile, your capital just sits there.
Basically, you’re tying up your money in a dead play instead of keeping it moving in higher-probability setups.
Smarter Trades Are Out There
If you want real potential, focus on setups with both momentum and catalysts.
Possibilities include earnings with fresh headlines, low float runners with volume, short squeezes, VWAP holds, morning faders, or RCTs.
These are just some of the bread-and-butter patterns we break down daily inside Pre-Market Prep and the Daily Income Trader System.
Learn more about my DIT System during one of our free live webinars.
My Final Thoughts…
That IAS move may have looked promising, but it was already over before most traders could even react.
Buyouts don’t move like momentum plays. They’re capped, sluggish, and risky, and definitely not worth your time.
Instead of chasing every shiny trade, learn to filter out the dead ends and zero in on patterns that actually offer upside.
Trading isn’t about playing everything that moves …
It’s about playing the right setups with the best odds on your side.
Have a great weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
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