This Trading Pattern Rewards Being Late

Every morning I create a watchlist, write it up, and send it along to our members. Some members don’t get a chance to see it for a couple of hours.

Now, a lot of people really like the idea of trading the big premarket spikers. But they’re either too late and the stock is already fading…

Or, they’ve seen enough of them spike and fail that they’re scared to trade ‘em.

There’s one pattern that actually rewards traders for being late. Today I’ll show you two examples. One was a banger, the other was lame.

Here’s another straightforward pattern that’s about to explode…

The Rubicon Trading System Is About to Go Into Overdrive

The Big Picture

Nearly every day recently we’ve seen four or five morning faders.

What’s a morning fader? Take a look at these two charts from last Thursday (June 25).

Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) spiked after-hours on June 24. The next day it faded in premarket trading.

AZI was lame.

Here’s a morning fader that worked well…

Nexera Technologies Ltd (NASDAQ: NEXR) ran in early premarket trading before fading into the open.

Again, we’ve been seeing four or five of these a day.

The way you play them is…

• Wait for the stock to open in regular hours
• Use the gap down level for your stop loss
• Then use the Oracle signal for your entry. (D.I.T. 2.0 gives you access to Oracle and a whole lot more.)

Now, on most days only a couple morning faders hit the signal. On June 25, it was AZI and NEXR.

You have to make a choice in the moment, and you might choose wrong. But if you use correct position sizing and follow your plan, you minimize losses with an opportunity to make solid gains.

Don’t Fall In Love With These Stocks

Look back at the AZI and NEXR charts. That after-hours run and premarket fade looked great to me. So, I chose AZI. It was lame and I was wrong.

I was bored to death, so I cut it and moved on.

A lot of traders agonize over a pattern not working. These are crappy penny stocks. We trade these every day, and AZI sucked. Lame as hell.

If a stock is lame, it’s lame. Was it the worst alert in the world? No. Was it lame? Yes.

Don’t fall in love with these stocks. These aren’t investments. You don’t put these in your 401(k) and hand them down to your children.

My Take

Always remember that penny stocks are a vehicle. They are not investments. The reason we trade them is because they can move fast. I don’t know any better way to achieve your goals faster.

Now, that means you’re also going to lose some. They’re just crappy stocks. I see a lot of people not willing to cut if they’re down. If the pattern doesn’t work for you, cut the trade. It’s that simple.

Write this down and put it next to your computer:

If you’re afraid to lose, you’re afraid to win.

Watchlist

Today’s stock is more of a swing trade idea.

Delta Air Lines, Inc. (NYSE: DAL) has a great looking 1-year chart . It also hit a 52-week high on June 25.

The reason I like DAL is because oil prices are coming back to reality and we’re in the summer travel season.

On My Radar

• The global economy is still dollar-centered. Recent geopolitical events assured that won’t change any time soon.
• The U.S. government requested that OpenAI delay the release of GPT-5.6, ostensibly for national security reasons.
• I mentioned Apple’s price hikes here on Friday. The Macbook Pro I bought a month ago went up $2,000 last week.
• In January, I started telling everyone to invest in your own hardware. Own your own means of production. My thoughts…