Good Morning!
Most of the biggest multi-day gainers of last week all started their run with one critical component…
It’s something day traders look for every day.
And if you spot it first, you have the potential to catch the most gains from a big mover…
But trading isn’t done with just one indicator or component. You have to be able to check all the boxes.
So let’s look at some recent winners and what kicked off their runs.
Then I’ll show you how to go through the steps to put together a winning trade plan.
753% Gains With Three Trades
Even if you’re not a full-time trader, there’s no doubt you probably heard of last week’s runners — Summit Therapeutics Inc. (NASDAQ: SMMT), Pharvaris N.V. (NASDAQ: PHVS), and Ambrx Biopharma Inc. (NYSE: AMAM).
And their big runs are all thanks to one catalyst…
And StocksToTrade’s Breaking News Chat nailed all three alerts. Check out how early they spotted them…
On Tuesday the team alerted SMMT when it was trading around $1.10…
That alert gave traders the chance to catch a 117% gain! And that was just on the first day! SMMT continued to a high of $4.50 over the next two days.
On Thursday the Breaking News Chat team alerted PHVS when it was trading at only $4.30…
The stock hit a high of almost $12. And it’s still holding up and could get day three surgy this week over $12.
And on Friday the team alerted AMAM when it was trading around 80 cents…
The stock hit a high of $4.42 — a 459% gain from the time of the alert!
These are three incredible examples of how news can move stocks. And the Breaking News Chat team alerts a ton of news throughout the day…
But how do you know which alerts will result in a monster runner?
We check the boxes…
How to Check The Boxes Before You Trade
You can’t just blindly buy every stock that has news. You have to line up multiple indicators along with the news, your trade plan, and a pattern.
Here’s what that looked like in SMMT…
The news that sent this stock soaring was a partnership deal for Summit to develop and commercialize a potential cancer treatment.
The stock has a float of around 30 million — which isn’t a low float, but it’s low-ish. (I thought it was higher than that when I made my trade plan.)
Plus, the stock gapped up in premarket, was climbing heading into the open, and it had a nice chart.
The pattern I was looking for was a dip and rip style trade. Where the stock dips and then reclaims a key level. The Oracle signal was a bit more aggressive on this one at $1.33.
But the better pattern to wait for was the VWAP hold, high of day break in the afternoon.
PHVS also checked multiple boxes…
The news that kicked off PHVS’s run was earnings, a business update, and top-line Phase 2 study data.
The stock has 26 million shares in the float, and it traded high volume. It had a beaten-down chart and was having a nice bounce. And it was a chat pump.
Again, I was looking for a dip-and-rip style move post-9:45 a.m. since it was a chat pump.
If you missed it in the morning, this stock also had its big move with an afternoon VWAP hold high of day break.
AMAM was one of the cleanest morning patterns out of the three… It was a top watch for a dip and rip.
The stock had positive Phase 2 data for its breast cancer treatment…
And just like SMMT’s news, cancer news moves stocks. AMAM even has around the same float as the last two runners — around 38 million shares.
It’s a beaten-down chart that was having a massive gain and bounce. Plus, it broke through $1, which can cause stocks to have big moves.
You can see how each stock’s news was just one piece of the puzzle when I made my trade plans.
If you’re an active trader, you might see multiple news announcements per day. Sometimes it creates multi-day runners…
Sometimes it creates short-lived spikes…
And other times news can spark themes in the market that can last for months. These can create massive opportunities for prepared traders.
Multi-millionaire trader Tim Sykes sees one of those themes playing out right now…
And while you might question whether you can believe it, just remember how many people laughed at him when he went on stage in November 2021 and told everyone a market crash was coming.
I bet a lot of traders wished they’d listened to him then…
See what he has to say about the current market theme at play here.
Have a great day Money Monday, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S. A big change is coming to StocksToTrade Advisory. If you’ve been on the fence about joining Pre-Market Prep — you better join now before it’s gone!