An old theme is back and it’s bringing in gains of 92% and even 108% in a single day…
And it’s happening with the overall market selling off hard.
So what’s so great about these stocks?
And what do they have in common?
Allow me to explain…
This theme ran wild in 2020 and 2021, but most of the stocks got obliterated in 2022 when risk was off the table for most traders.
But they’re back and offering great day trading opportunities….
So let’s take a deep dive into this market theme and how you can trade the opportunities…
OCEA gained as much as 108% and LUNR gained 92%.
But if they’re in different sectors, what do they have in common that would make them run together?
This is why I call it a theme, not a sector — both stocks are SPACs.
What’s a SPAC?
It stands for Special Purpose Acquisition Company. It’s basically a shell company that’s created with the purpose to acquire or merge with another company to bring it public.
It’s a faster and easier way for companies to become publicly traded instead of through an initial public offering (IPO).
SPACs were huge back in 2020 and 2021. The market was raging and companies were eager to become publicly traded so they could take advantage of the market hype and euphoria. It means traders and investors are willing to pay a premium for shares.
And the company can take advantage of inflated valuations.
These companies can be far from being profitable … But they’re great for day trading. Here’s how you can take advantage of the moves…
How To Trade SPACs
If you’ve been watching them and following along recently, you’d know that dip and rips aren’t working right now…
So you could’ve avoided getting caught in the failed high of day break in OCEA yesterday…
But what is working right now are afternoon moves and multi-day runners.
I’ve been intentionally avoiding day-oners lately, especially in the morning. But now that OCEA and LUNR have hung around on day one and closed strong…
You can watch them for a red-to-green move, afternoon VWAP holds…
Learn about them all in my ebook and Market Update videos — you get both as part of StocksToTrade Advisory.
And today’s Friday, so you know I’ll be looking for an epic Friday squeeze!
Have a great day everyone. See you back here tomorrow.
Lead Trainer, StocksToTrade