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The Next Bull Rally – Do This Now!

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Written by Timothy Sykes
Updated 4/11/2024 7 min read
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Wall Street is worried about the recent market weakness.

But for traders like you and me, it’s business as usual.

Here are the details:

This week’s CPI inflation data is a bearish catalyst, it shows persistently high inflation rates. As the market dips in response, hedge funds are hard pressed to continue overall account growth in an uncertain market.

Take a look at the S&P 500 ETF Trust (NYSE: SPY) chart below and notice the recent downtrend. Every candle represents one trading day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

But small-account traders don’t have this issue.

For example, I’m not holding shares of a stock like Apple Inc. (NASDAQ: AAPL). As a result, the long term success of AAPL and the overall market momentum doesn’t matter to me.

Instead, I’m focused on daily spikes. I get in and out while the volatility is most predictable*, then I move to the next hot runner.

Now, with that said, I need to make note of the indirect relationship between the larger market and our profitable niche: Three out of four stocks will follow the market. Which means, when the larger market is hot, the plays in our niche are stronger.

The market is a little shaky right now. That’s why we’re only focusing on the best plays. Like this week’s 340%* spike on Rent the Runway Inc. (NASDAQ: RENT).

I snagged a cool profit from this run yesterday. And if the market were hot, RENT could have spiked even higher.

That’s why it’s so important to pay attention right now. Hone your skills while the market dips. And during the next market rally, we’ll be ready while everyone else plays catch up.

The Next Bull Market

sykes thumbs up on the bull
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See my trade notes below on RENT, with a starting stake of $22,296:

Source: Profit.ly

Here’s a chart of the spike thus far, every candle represents 3 minutes:

RENT chart intraday, 3-minute candles Source: StocksToTrade

As I said, the spike could have pushed even higher intraday! That’s why I’m so excited for the rest of 2024 …

There’s a massive catalyst looming.

And despite the bearish inflation data, I’m still watching for a market rally.

It could be this month, or next month, nobody knows for certain. But here’s what we DO know: This catalyst points toward an insane buying spree. And since three out of four stocks follow the market, once it hits, the plays on our niche will spike off the charts.

Maybe you don’t remember … One of the biggest spikes of 2024, MicroCloud Hologram Inc. (NASDAQ: HOLO) launched 6,400%* during the month of February.

6,400%* in less than two weeks!

And if it weren’t for the intense AI and tech momentum pushing the entire market higher in February, it’s unlikely that HOLO would have spiked as high as it did.

Let’s compare …

Look at the spike on HOLO, every candle represents one day:

HOLO chart multi-month, 1-day candles Source: StocksToTrade

Now compare it to the bullish momentum on the SPY in February, every candle represents one day:

SPY chart multi-month, 1-day candles Source: StocksToTrade

The market strength spills over into our profitable small-account niche.

Yes, there are still spikers during bearish markets, you saw the 340%* spike on RENT this week. But it’s nothing compared to bull-market spikers.

And no matter how shaky the market might seem right now … Remember that there’s a huge rally on the horizon.

Small-Account Opportunities

© Millionaire Media, LLC

Put in the work right now so that you can capitalize when things get hot!

You’re not alone, there are other traders studying too. See the Tweets that I reposted below:

Even during the current market dip, there are new profit opportunities every day.

And those who prepare now will be in the best position to trade the next +1000%* runner like HOLO.

There IS a process to follow.

Don’t worry, I’d never leave you hanging.

Everything you need to know is right here.

  • The coming bull-market catalyst.
  • The AI tool that we use to trade profitable spikers.
  • A timeline for the next rally.

Don’t get left behind! The last time this catalyst happened, major indices like the SPY rallied 100%.

Cheers.

*Past performance is not indicative of future results.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”