Market Gap Down? These Stocks Gapped Up!

Yesterday morning, the broad market tumbled on troubling inflation news…

But it soon reversed course and nearly reclaimed everything it had lost earlier.

The market acting unpredictably? Wow, what a surprise!

Fortunately, it’s well on its way to a full correction from Trump’s early April tariff announcement.

But for the moment, I don’t care. We’re constantly seeing wins from high-quality, reliable day trade setups, despite what’s happening in the major indices.

And speaking of great setups, check out the latest one I’ve discovered… 

Did you know that Monday morning presents a unique window of opportunity that doesn’t exist at any other time during the week?

The Monday setup has brought 100%+ gains…in just one day!*

I’ve studied and perfected this trade, and now I want to share it with you.

Learn it for yourself in my video tutorial below:

Yesterday, we saw several common patterns play out for big gains…

And these are ones I teach all the time. We see them almost every day.

The Dip and Rip

If you’re looking for a simple, effective setup that keeps showing up in low float stocks, day after day, the Dip and Rip should be high on your list.

Why is this one of my go-to patterns? 

Because it works. It gives you structure, clear risk, and the kind of explosive upside traders dream about.

You’re looking for a stock that:

• Gaps up big in premarket, often on news or hype.
  
  
• Dips shortly after the market opens, which is often just profit-taking or shorts stepping in.
  
  
• Then rips back through the premarket high, triggering a breakout and a potential squeeze.
• This move can happen fast, sometimes within the first 15–30 minutes of the trading day, so you need to be prepared.

Here’s how to trade it:

1. Pre-Market Scan: Look for big percentage gainers with news, volume, and ideally a float under 50 million shares.
   
   
2. Identify Key Levels: Mark the premarket high…that’s your breakout trigger.
   
   
3. Wait for the Dip: Don’t chase the open. Let the stock pull back and base.
   
   
4. Enter on the Rip: Once it reclaims and breaks through the premarket high with volume, that’s the time to buy.
5. Set Your Risk: Use the morning low as your stop.

Here’s what Urgent.ly Inc (NASDAQ: ULY) did yesterday morning…

The stock gained around 13%* in just 20 minutes.

The Morning Fader

A low-float stock gaps up in premarket, but instead of continuing higher, it starts to fade before the market even opens.

Most people think that’s a failed setup…

But they’re wrong. That’s just the first act of the Morning Fader.

The real opportunity comes after the open.

Using the Oracle system, we’re able to spot a specific entry level. 

And when it hits, the upward move can be pretty impressive.

By the way, if you’re not using Oracle yet, you don’t know what you’re missing. I use it every single day and couldn’t trade without it.

Check it out for yourself in one of our free daily webinars!

Here’s how to trade the Morning Fader:

1. Scan for stocks that gapped up and then started fading premarket.
   
   
2. Wait for the Oracle signal.
   
   
3. If it hits the level, trade it.
   
   
4. If it doesn’t, skip it.
   
   
5. Use the morning low as your stop. If it hits that, exit immediately.

Pretty simple, right?

Invo Fertility Inc. (NASDAQ: IVF), which announced an earnings win in the morning, demonstrated a textbook morning fader pattern yesterday…

After hitting the Oracle signal and hitting the day’s high, IVF gained 30%*.

The VWAP Hold

If you’re serious about trading with confidence, not emotion, you need to know the Volume Weighted Average Price (VWAP) Hold setup.

It’s one of the most straightforward ways to spot real strength intraday, and it’s one of my favorite confirmation tools, especially when I’m looking to avoid the fakeouts and noise.

VWAP stands for Volume Weighted Average Price, and it’s exactly what it sounds like: the average price a stock has traded at throughout the day, weighted by volume.

The VWAP line acts like a magnet early in the day, and then becomes a powerful indicator of buyer support or seller pressure.

The VWAP Hold setup is simple:

• The stock dips to VWAP intraday.
  
  
• It consolidates, or holds that level, meaning it doesn’t move below it for long.
  
  
• Then it starts to push higher with volume. 

How to trade it:

1. Start With a Stock in Play: Look for gappers or high-volume runners…news, hype, float rotation, whatever makes it move.
   
   
2. Watch VWAP After the Open: If the stock pulls back and holds the VWAP, that’s your key level.
   
   
3. Wait for the Push: If Volume picks up and the price starts grinding higher, that tells you the buyers are in control and you should make the trade. If the stock falls below VWAP and stays there, don’t trade it. The sellers are calling the shots.
4. Set Your Risk: Use VWAP as your stop level. If it cracks and stays below, you’re out. No hesitation.

VWAP set us up for a win in OhMyHome Limited (NASDAQ: OMH) yesterday…

After it started trading above VWAP, the stock gained about 17%*.

My Final Thoughts…

Consistency in trading doesn’t come from chasing everything — it comes from mastering a few key setups that keep showing up.

That’s exactly why I lean on patterns like the Dip and Rip, the Morning Fader, and the VWAP Hold.

• The Dip and Rip gives you structure at the open. 

You let the hype cool off, wait for the breakout reclaim, and trade the move with conviction.

• The Morning Fader lets you spot the fakeouts early.

Watch for the premarket fade, then pounce when it reclaims and confirms your Oracle level.

• And the VWAP Hold is all about confirmation. 

When a stock finds its footing above VWAP and starts grinding higher, it’s showing you the buyers are in control.

These aren’t just random ideas. They’re proven patterns that allow you to trade with confidence, with a plan, and with risk clearly defined.

To truly master these setups and others, you need a reliable trading platform.

My top pick and the one I use every single day is StocksToTrade.

Run scans, create stock charts, add your technical indicators like VWAP, set stop-loss alerts, and access all the data you need in real-time, all in one place.

It has everything you need to stay ahead of the game.

And right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.

Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17.

 

Have a great day, everyone. See you back here tomorrow. 

 

Tim Bohen

Lead Trainer, StocksToTrade