Something big recently happened on Wall Street…
And I’m not even talking about September’s mega opening act… a two-bagger day trade win on Tuesday!
And no, it wasn’t a flashy headline or a surprise earnings report. But it’s poised to open up a goldmine of opportunities this month, on top of everything we’re already seeing.
One opportunity that continues to show up week after week is my Monday Setup.
If you aren’t already using it, now’s the time to start!
Here’s 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 incredible wins!
Look at last Monday, August 25th…
HCW Biologics (NASDAQ: HCWB) announced its development of a groundbreaking treatment for certain types of cancers… And the stock took off, gaining 113%*!
These are the kinds of morning spikes we hunt for every Monday!
Now I want to teach you how to spot them for yourself!
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
The recent event mentioned above could impact everything from housing stocks to high-flying tech plays… even the riskiest small caps.
Serious about finding your next big trade? What comes next could change everything.
Table of Contents
When the Fed Hints at Rate Cuts, Wall Street Listens…
And two Fridays ago was a classic example.
During the annual Jackson Hole gathering, the Super Bowl of central banking, Fed Chair Jerome Powell (or “J Pow,” as I like to call him) gave one of his clearest signals yet: rate cuts are on the table.
No, he didn’t say when… But my bets are on this month.
This is no longer a question of “is it going to happen?” It’s a question of “how soon?”
How Lower Interest Rates Fuel the Economy
Cheaper Borrowing Costs:
- Businesses can access capital more easily, which means expansion plans get fast-tracked.
- Consumers can grab better mortgage, auto loan, and credit card rates.
- This all means more spending and more growth.
Higher Corporate Profits:
- Debt-heavy companies breathe easier with less money wasted on interest.
- Extra cash gets reinvested or returned to shareholders.
Housing Demand Spikes:
- Lower mortgage rates? Buyers rush in and builders ramp up.
- It’s a domino effect for related sectors: lumber, hardware, appliances, etc.
U.S. Exports Get a Boost:
- Lower rates often weaken the dollar.
- That makes American goods cheaper overseas.
- This leads to more demand for U.S. products abroad.
How the Stock Market Reacts
These sectors love low rates…
Growth and Tech Names: In a low-rate world, future earnings are worth more today.
This is rocket fuel for high-growth sectors like AI, cloud computing, and semiconductors.
To learn more about the AI revolution and how to play it, check out this special Bonus Report from my friend and veteran trader, Tim Sykes.
Small Caps: Smaller companies typically rely on borrowing, so lower rates mean lower costs and big upside potential.
Housing and Construction: Builders, mortgage platforms, home improvement stocks, and all the sympathy plays thrive when rates drop.
My Trade Picks for When Rates Come Down
When J Pow pulls the trigger, whether in September or later, here are a few names on my radar:
SoundHound AI (NASDAQ: SOUN):
SOUN is an AI-driven voice recognition company riding the wave of artificial intelligence adoption.
This ticker has strong sector momentum potential and is best suited for swing trading when AI names heat up.
SOUN One-Month, One-Hour Candles Chart; SteadyTrade
Offerpad Solutions (NYSE: OPAD):
Offerpad is an online real estate platform that thrives when housing demand picks up.
This stock often reacts to rate changes and housing market sentiment, making it a solid candidate for quick day trades.
OPAD One-Month, One-Hour Candles Chart; SteadyTrade
Cenntro Electric (NASDAQ: CENN):
CENN is an EV micro-cap with rate-sensitive upside as cheaper capital boosts EV adoption.
Highly speculative, this name tends to move on sector news and momentum, making it best suited for short-term day trades.
CENN One-Month, One-Hour Candles Chart; SteadyTrade
For all my trade ideas, including more low-interest-rate plays, subscribe to my Daily Income Trader System.
With DIT, you’ll also get our Oracle tool, four daily webinars, trade alerts, and much more.
Learn more about it during one of our FREE daily webinars.
My Final Thoughts…
Powell may not have given us an exact date for a rate cut, but make no mistake…
He cracked the door wide open.
And when it hits, you want to be ready… not chasing after the fact.
Expect to see:
- Growth and AI names extend their runs
- A rebound in the housing demand
- Speculative small caps lighting up the scanner
Don’t just chase headlines. Stay focused. Look for volume, sector rotation, and confirmation before you strike.
Because when the money flow shifts, it shifts fast.
And the most prepared traders won’t be reacting… They’ll already be in.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
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