7 Top Stocks to Watch in May 2023

My top stocks to watch in May 2023 aren’t investment vehicles. Every day, week, and month I survey the entire market, looking for stocks that are trending in one direction or another.

Even in slow months, there will be opportunities. Your job is to identify the stocks that have the potential to make moves and be ready to trade them if those opportunities come about.

My first goal is to show my students how to trade more safely. That’s what I do every day on the Daily Income Trader. And that’s what I’m doing here.

How do you protect yourself in the market? First of all, you have to realize that there are no sure things. These are just ideas. You watch the market to see what’s working and what isn’t.

Keep these stocks on your radar, but don’t let go of the wheel.

Top 7 Stocks to Watch in May 2023

My top 7 stock picks for May are:

• (NASDAQ: CXAI) — CXApp Inc. — The AI Stock Bouncer
• (NYSE: AI) — C3.ai, Inc. — The AI Sector Leader That’s Still Hanging Around
• (NASDAQ: AUGX) — Augmedix, Inc. — The AI Stock to Keep an Eye On
• (NASDAQ: PRST) — Presto Automation Inc. — The McDonald’s Pump AI Stock
• (NASDAQ: EYPT) — EyePoint Pharmaceuticals, Inc. — The Biotech Breakout Stock
• (NASDAQ: WISH) — ContextLogic Inc. — The Potential Short That Even a Reverse Split Can’t Save
• (NASDAQ: MGRX) — Mangoceuticals, Inc. — The Failed Biotech Breakout Stock

Everyone was worried about a recession.

They said the banks were going to fail.

The AI bots are going to enslave us and take our jobs.

Friends, sometimes all it takes is a can-do attitude.

Despite the overwhelming amount of concern, the stock market pushed right up against highs for 2023.

We saw new spikers every week in the small-cap sector.

People are always confused when they hear that I trade low-priced stocks. They ask me, “why focus on these crap companies?”

Here’s my answer … 

This is where the volatility is. This is where small-account traders find some of the best opportunities.

These stocks can spike hundreds of percentage points in a single day. And that kind of volatility can level up an account pretty quickly.

First, understand, it takes a special kind of ticker to create these insane opportunities.

That’s what we’re going to run through today.

Let’s get into it … 

#1: CXApp Inc. (NASDAQ: CXAI) — The AI Stock Bouncer

My first May stock pick is CXApp Inc. (NASDAQ: CXAI).

This is one of the hottest runners from April.

It first spiked on April 13. As we get to May the price is still consolidating.

That’s a great sign when it comes to volatile movements.

Usually, stocks like to trade between key levels. They’re called support and resistance lines.

The price bounces between these lines — that’s called consolidation — until it eventually builds enough momentum to break above or below. The breakout is usually volatile … 

That’s the volatility we’re looking to capitalize on.

And since the CXAI price has been consolidating for a few weeks, it’s only a matter of time before the price shoots one direction or the other.

I’m hoping for a breakout over 52-week highs.

But if the price fails, there are also intraday patterns we can trade on the way down.

That’s the beauty of this niche.

#2: C3.ai, Inc. (NYSE: AI) — The AI Sector Leader That’s Still Hanging Around

My second May stock pick is C3.ai, Inc. (NYSE: AI).

I’ve long referred to this ticker as the sector leader for artificial intelligence.

The chart shows a significant run-up at the beginning of 2023, right when the sector was heating up.

The price has always been a little higher than the traditional penny stock of $5 or lower … There are great opportunities to trade among real companies as well as trash ones.

We tend to focus on the trash ones because that’s where most of the volatility is. But if I see an opportunity, no matter the stock, I’ll point it out.

AI prices dove below $20 support in late April. But the chart shows consolidation. And given the strength of this sector, there’s a chance the stock rebounds.

#3: Augmedix, Inc. (NASDAQ: AUGX) — The AI Stock to Keep an Eye On

My third May stock pick is Augmedix, Inc. (NASDAQ: AUGX).

This is what we call a traditional penny stock. Right now the price per share is only $2.80.

The reason why low-priced stocks are so exciting; the percent gain can be enormous.

A $1 spike on a stock like AUGX equates to over 30% gain.

A $1 move on a stock like Meta Platforms Inc. (NASDAQ: META) isn’t even 1%.

See my point? There’s no meat on that bone.

Back to AUGX, our juicy ribeye … 

It launched over 90% on April 20 with AI news. As I type this the price is consolidating.

Watch for it to base above support and continue past the highs it set in late April.

#4: Presto Automation Inc. (NASDAQ: PRST) — The McDonald’s Pump AI Stock

My fourth May stock pick is Presto Automation Inc. (NASDAQ: PRST).

There’s a spicy story behind this one.

And I’m not talking about McDonald’s chicken … 

The PRST volatility started on April 17 when it spiked over 270%.

Since then there have been AI press releases and rumors of a McDonald’s partnership.

All of that sounds great. The company’s got news in a hot sector and a potential partnership with McDonald’s. What could go wrong?

Well, it turns out the partnership was a hoax.

According to White Diamond Research, “ … The reality is McDonald’s isn’t a customer of PRST in any way, and now that attention is on PRST, they don’t want to get sued by investors for false information.”

White Diamond is a notorious activist short seller and whistleblower. They expose trashy companies and likely profit as the price subsequently falls.

But ever since 2015, I’ve been wary of short selling.

See … when everyone knows they should be shorting a stock, too many people pile in. And as shorts buy-to-cover, the bullish momentum compounds on itself and creates what’s called a short squeeze.

It’s an immensely dangerous situation for short sellers.

But for long-biased traders like myself … it’s a huge opportunity.

I’m waiting to see if this stock can squeeze higher.

#5: EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT) — The Biotech Breakout Stock

My fifth May stock pick is EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT).

It’s not all about artificial intelligence … 

There are other hot sectors to pay attention to as well.

Tied for first are biotech stocks.

This sector comes and goes. Right now it’s on fire.

For proof, look no further than EYPT.

The company announced on March 27 that it started phase-two trials for one of its treatments. That’s what started all the recent bullish momentum.

Prices pushed higher for seven straight days in April. The spike totaled more than 200%. And right now the chart shows support at $6.

Positive phase-two updates could push this stock even higher.

I’m waiting for another press release to spike the price.

#6: ContextLogic Inc. (NASDAQ: WISH) — The Potential Short That Even a Reverse Split Can’t Save

My sixth May stock pick is ContextLogic Inc. (NASDAQ: WISH).

In case you were unaware, WISH has a history as a meme stock.

Back in 2021, the price broke $30 per share … that was before a 1-for-30 reverse split!

As I type this it’s trading below $7.

We spoke about short squeezes earlier, and this is a prime candidate.

Especially since another meme stock is in the headlines … 

Bed Bath & Beyond Inc. (NASDAQ: BBBY) is closing up shop after months of bankruptcy rumors and failed attempts at securing cash.

All the eyes on BBBY will likely bring more attention to the remaining meme dinosaurs.

It’s not a sure thing … but if WISH starts shooting higher, you can bet it was the shorts blowing up.

And I’m ready to ride that momentum.

#7: Mangoceuticals, Inc. (NASDAQ: MGRX) — The Failed Biotech Breakout Stock

My seventh May stock pick is Mangoceuticals, Inc. (NASDAQ: MGRX).

“Mangoceuticals! Doesn’t that sound tasty? Buy my stock please.”

That’s not actually how the IPO went. But you wouldn’t know it by looking at the chart.

Shares started trading on March 21 just above $4. And then it was all downhill until the price hit $0.90.

After that … there was a feeble attempt at a spike on April 21. A sign of life.

That’s what I’m most interested in.

Past spikers can spike again. And now I can use the support and resistance from April’s run to inform my future trades.

All I need is another spike with some volume.

What Do You Need to Trade Stocks?

The biggest thing you need to become a self-sufficient trader is something money can’t buy…

Patience.

Everything else is easy enough to come by.

Most brokers don’t charge commissions when you buy listed stocks — which is every stock on this list.

You can see the brokers I recommend here.

What else do you need?

You’ll need a trading computer and decent internet. You’ll also need a powerful trading platform like StocksToTrade…

StocksToTrade puts top-of-the-line charts and stock screening at your fingertips. It’s got a built-in news scanner that puts earnings reports and news that move stocks in one place.

We think you’ll see the difference immediately. Get your first 14 days here for only $7.

Then comes the hard part…

You need to learn patterns. You need to find out which strategies work for you. You need to put in screen time…

Paper trading is a good way to get your feet wet. StocksToTrade can do that too.

You need to make trading plans and track your trades. I know, it’s a lot. That’s why I’ve designed the best mentorship program out there — Daily Income Trader.

Our trading community will bring you live webinars, strategy sessions, and the chance to ask questions of me and other top traders.

My goal is to teach you how to think for yourself and trade through any kind of market.

Here’s one of the biggest things I teach you to do… 

How to Find Your Top Stocks to Watch: 5 Tips for Every Day

The best traders don’t believe in ‘hot stocks.’ They watch what the market is doing every single day.

There’s no trick to it. Building a daily watchlist comes down to five easy steps.

#1: Run Your Scans

You know what’s moving by setting your stock screener to pick up the right stocks.

I run scans all through premarket, looking for stocks up at least 10%, on decent volume and a catalyst that isn’t complete garbage.

The market is a game of supply and demand. A stock screener is the best way of measuring that demand.

#2: Know Your Catalysts

Crappy penny stocks will always have press releases and celebrity tweets when they’re running. It’s your job to know what’s fluff and what isn’t.

Luckily, it isn’t hard. Is the market reacting well to it? Then it’s probably decent news.

We have an add-on service specifically dedicated to the news that moves stocks. It’s called Breaking News Chat — and it can be your secret weapon. 

#3: Study the Charts

Studying charts can be the difference between randomly trading a stock and seeing a good entry.

How do I know that most days TSLA starts the day red it often finishes green? It’s because I’ve studied its charts.

#4: Look for Volume

Volume is the biggest indicator of price action.

You can trade a stock move with no news. But you probably don’t want to make a trade with no volume.

This is another thing to study when you’re looking at a chart.

Take a look at a stock’s biggest moves. How much volume does it get when it’s making a move? 

#5: Learn From Other Traders

Never copy another trader’s trades. If you’re last in on a trade, you’ll only make money by luck. And you sure won’t learn to trade for yourself.

The training we offer at StocksToTrade is designed to help you become a self-sufficient trader. We show you how we come up with our trade ideas, we don’t give them to you.

Profit and loss isn’t the mark of a good trader. It’s the planning and execution you put in.

We can help you get there in a few different ways:

• My Weekly Watchlist: On Sundays, my weekly watchlist is free on StocksToTrade’s YouTube channel.
• StocksToTrade Advisory: This is an intro to my trading approach — with premarket sessions, a weekly watchlist, and an in-depth monthly report.
• StocksToTrade Daily Accelerator: This is my no-cost daily newsletter, filled with mindset tips, the best plays of the week, and whatever else I think needs sharing.

Conclusion

I’ve shown you the work that goes into building a watchlist…

And I hope I’ve scared you enough that you don’t take these picks as recommendations!

Trading is something you do at the same time as millions of other people. Having stock picks is as silly as taking cue cards on a date…

And it works about as well.

Your trading success doesn’t depend on any ‘secrets’ I can tell you. The only thing it depends on is you learning about your own trading style.

Treat this watchlist as a starting point. Keep on working on your own watchlists until they fit the way you trade.

What do you think about the stocks I’m watching this month? Have you traded any of them? Let me know in the comments!