It’s one of the most hyped-up triggers in the market…
You see it pre-market. Stocks spike, chat rooms light up, and before you can even question it, traders are piling in.
Sounds a lot like what we see every Monday morning…
Are you using my Monday Setup yet? The trade that has brought us huge wins? If not, 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 given us some unbelievable gains!
Take this past Monday…
After announcing positive drug trial results, Replimune Group Inc. (NASDAQ: REPL) surged over 130%!*
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself…
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
But unlike the Monday morning setup, what if the excitement and the hype aren’t based on anything real?
Table of Contents
Not All Headlines Are Created Equal
One of the most common questions I hear from new and even experienced traders is, “How do you know when a press release is legit?”
It’s a fair question…
Sometimes a company drops news that’s genuinely meaningful and can spark a solid move.
But other times, it’s fluff carefully crafted by management to pump up a ticker and get traders excited.
And no surprise… This happens constantly in the penny stock world.
Why?
These under-the-radar companies are hungry for attention and volume. They need something to move the stock.
Case Study: BURU
This morning, during my Pre-Market Prep session, I came across a press release from NUBURU Inc. (NYSE: BURU).
NUBURU Announces Strategic Alliance with Maddox Defense for Controlling-Interest JV to Advance Next-Gen Drone Technologies
At first glance, I was pretty pumped at the headline… I mean, drones and defense are hot sectors right now.
But as I started reading through the PR, I became less and less impressed.
To be fair, it wasn’t total BS, but the information was vague, and it also used a lot of words like “anticipating,” “approximately,” and “roughly.” Those are big red flags for me.
Still, the stock didn’t care. It spiked fast and hard. Traders rushed in, the hype took hold, and the stock went vertical.
And then what?
Shortly after that, BURU faded away, leaving a whole lot of bagholders in the dust.
Here’s what it looked like:
BURU Intraday, 1-Minute Candles Chart; SteadyTrade
The Lesson: Headlines Can Hurt You
If you’re blindly reacting to every press release that hits the wire, you’re setting yourself up to get burned.
Let’s break down what typically happens:
- PR drops early (usually pre-market).
- Stock spikes on hype.
- Early birds might catch the move.
- Late buyers chase near the top.
- Stock fades, and sometimes, before the bell even rings, like BURU did.
How to Spot Red Flags in Press Releases
Want to avoid getting trapped like that?
Here’s what to watch out for:
- Over-the-top buzzwords: If it sounds like a marketer wrote it, it’s probably a pump-up maneuver.
- No concrete numbers: “Record revenue” means nothing without real figures.
- Unnamed partners: If they say “a leading tech company” and don’t name it, that’s a problem.
- “Up to” language: “Contract worth up to $20 million” could mean $5.
- Bad chart history: If the stock dies every time it spikes, it’ll probably do it again.
Want to Stay Ahead of the Noise?
I consistently lean on Breaking News Chat, my go-to alert service.
It’s run by two former Wall Street analysts who know how to filter through the noise to find meaningful and actionable news before the rest of the market reacts.
Click here to learn more about BNC and the winners it has nailed.
And if you really want to stay one step ahead of the crowd, watch the SEC filings.
Most major announcements are preceded by an 8-K. That’s your early signal that a press release might follow.
My Final Thoughts…
Don’t be the trader who sees a flashy headline and clicks “buy” without thinking.
Don’t trust vague, buzzword-heavy PRs, and don’t ignore the stock’s history.
Instead…
- Look at the filings.
- Read between the lines.
- Trust the chart.
- Avoid the noise.
Because the traders who survive long-term are the ones who know when to stay cautious, dig deeper, and wait for the real move.
Be that trader!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
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