The #1 Setup For Traders

As small-account traders, we focus on short term positions to avoid undue risk.

Conversely, anyone who has money invested in the market is along for the ride as major indices dip lower.

The first few months of 2024 were a whirlwind of bullish activity. And since three out of four stocks follow the market, most people could have tripped and fallen into profits.

But now that the market is pulling back … it’s more difficult to snag bullish returns as an investor.

Take a look at the S&P 500 ETF Trust (NYSE: SPY) chart below for a better idea of the market right now.

Every candle represents one trading day:

Now, there’s a lot to digest on this chart. I’m going to run you through some important points …

But remember, as small-account traders, we’re not that concerned with the larger market. We look for the hottest individual stocks. So, just bear with me for a moment.

Here are the important market bits:

• The early 2024 tech momentum scaled back in April for a few reasons.
  • Persistent U.S. inflation.
  • Escalating Middle East tensions.
  • It’s normal for markets to experience pull backs.

• The recent bounce is attributed to positive tech earnings this week.
  • No one knows where the market goes from here.

There are so many factors that influence the overall market. And there’s no way to predict what happens next.

Stop trying to play the market.

Instead … focus on smaller stocks. Stocks that have fewer factors to influence the price.

• We get in.
• We get out.
• We move to the next play.

Here’s what to watch right now:

Small-Account Setups

Almost in complete contrast to the overall market, there are A LOT of bullish setups in our niche at the moment.

One of the biggest plays that I’m watching right now is the 280% spike on NewGen IVF Group Limited (NASDAQ: NIVF).

Here’s why I like it:

StocksToTrade shows that the float is only 10.1 million shares. That qualifies as a “low-float stock”. The low float means there’s a low supply of shares. And the low supply helps prices spike higher when demand increases.

Like when NIVF announced a “reverse merger” that will effectively combine NIVF with European Wellness Investment Holdings Limited.

The company’s report mentioned an updated share valuation of $5 … at the time, share prices were trading below $1.

Below is a chart of the 280% spike thus far, every candle represents one trading minute:

A lot of people might think, “I’ll just buy shares now and hold them until the price hits $5!”

It’s not that simple.

The reverse merger is currently a non-binding agreement. That means there’s no guarantee it will come to fruition. Plus, the company alleging a $5 share valuation is very different from whatever the market decides the actual valuation is.

But don’t worry, you’re on the right track! And that’s key.

We use catalysts like this reverse merger to pinpoint the hottest plays. Then we use popular patterns to play the price action.

Trading Patterns

The hottest stocks in the market can follow popular patterns because people are predictable during times of high stress.

Like when they’ve got a few thousand dollars in a stock spiking +100% intraday.

I learned these small-cap patterns from Tim Sykes. He’s a millionaire penny-stock trader who noticed these market patterns over two decades ago. And all these years later, he still trades the same setups. We will likely continue to see these patterns as long as human beings continue to interact with the market.

And as a testament to the opportunities … Sykes has students who are more successful than him with his very own strategy.

A prime example is Jack Kellogg.

Over the past two decades, Sykes has pulled $7.6 million from the market (that number includes losses). And in a fraction of the time, Kellogg managed to profit $12.5 million and counting.

Watch the video below to recap one of Jack’s LIVE trades:

He uses the same trade process as Sykes. It’s the same process that I use.

Start paying attention to these setups!

There’s a new profit opportunity every day for small-account traders.

Add NIVF to your watchlist. The multi-day chart shows a possible breakout to new all-time highs. If the price can push past $3 … we’re off to the races!

And take a look at Jack Kellogg’s #1 trade setup right now.

The more plays that you see, the quicker this will start to make sense.

More Trade Opportunities Ahead!

There’s a LIVE trading roundtable event this weekend.

• I’m presenting.
• So is Tim Sykes.
• So is Jack Kellogg.
• So is a former NFL Patriots player turned trader …

Here’s the full speaker list. We’re REAL people making REAL trades.

And this weekend, at the very least, we’ll be sharing our top profit opportunities for the week ahead.

>> Here’s your free ticket for the live stream <<

Have a great day everyone. I’ll see you back here tomorrow.

Tim Bohen

Lead Trainer, StocksToTrade