There are a lot of opportunities and hot sectors in the market right now — it’s enough to confuse even the most experienced traders…
Should you watch large-cap earnings winners, biotechs, artificial intelligence stocks, or crypto stocks?
The number of choices can make your head spin and have you jumping from stock to stock and sector to sector trying to nail everything…
But that’s the worst thing you can do.
You’ve gotta pick what you like and then stick with it.
Here’s how I picked my number one watch and the sector to focus on yesterday…
See if you can use this lesson to help you pick your top watch for today!
How To Sift Through Stocks
When you’re making your trading plans for the day in the premarket, it can be especially tough to narrow down your list when there are so many gainers and recent runners.
Yesterday was one of those days…
We had big-name earnings winners like Microsoft Corporation (NASDAQ: MSFT) which gapped up almost 8%…
Bitcoin had an impressive bounce in the morning from roughly $28,500 to almost $30,000 which sparked gap-ups in crypto stocks like Riot Platforms, Inc. (NASDAQ: RIOT) and Marathon Digital Holdings, Inc. (NASDAQ: MARA)…
Biotechs are hot and Panbela Therapeutics, Inc. (NASDAQ: PBLA) was the biotech du jour…
Plus, we had recent runners from last week. Before the market opened, my long list of stocks to watch looked like this…
9:16 AM $AI $AUGX $AVGR $CXAI $GCTK $GFAI $INAB $MGRX $PBLA $PTPI $SAI $RIOT $MARA
So I had to shorten it up and pick where I was going to focus.
To do that, I looked at the overall market story…
What’s the hot sector and what’s the big story in large caps that could spill over into small caps?
What are big earnings winners telling you about trends?
For me, the story yesterday was about artificial intelligence stocks.
CXApp Inc. (NASDAQ: CXAI) had a big bounce day and squeeze on Tuesday which I thought could reignite the sector…
And MSFT’s big gap up on earnings reiterated the story around investment in AI technology to drive growth.
So when low float former spiker SAI.TECH Global Corporation (NASDAQ: SAI) was gapping up in premarket — I made it my number one watch for a break over $3.80.
Here’s what I said in my notes…
Microsoft, one of the largest market cap stocks in the world is gapping up almost 10% based a lot on their push into AI. So I think today AI should be the focus, $SAI is that “sweet spot” of low single digits to attract short sellers.
SAI made its move early again in premarket which seems to be the theme for me lately…
But after the market opened, artificial intelligence stock BigBear.ai Holdings, Inc. (NYSE: BBAI) also began to spike and ended up running over 20%.
So looking at the overall market news, stories, hot sectors, and earnings winners can help you pick which sector or stock you want to focus on that day.
If you want to stay up to date on what’s happening in the market…
And get my perspective on themes and stocks in play — sign up for my Market Update videos three times per week!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade