The market is red hot right now.
And the next setup is right around the corner.
Aqua Metals Inc. (NASDAQ: AQMS) already spiked 590%* this week.
The company recycles lead batteries to preserve precious materials. And currently the world is racing for rare-earth supply to power AI, build EVs, and satisfy demand for tech across the board.
But here’s the kicker …
While everyone chased the higher priced AQMS, I locked in $3k on a different play: A little-known company that also dabbles in waste management and recycling.
It’s the same sector. But a different name. With cheaper shares.
This was a classic sympathy play.
I didn’t chase the hype in the larger market. Instead, I looked for my patterns on a smaller stock that had yet to run.
This is the kind of play that most traders miss because they’re only focused on what’s already moving … Not what’s about to move.
This is how small-account traders can level up fast. By understanding market psychology, sector momentum, and which moves tend to come after the first spike.
Study my $3k trade from this week and don’t miss the next sympathy play.
My Sympathy Trade
AQMS started to run on Monday morning.
There wasn’t any news to warrant the spike, but the entire rare-earth industry is surging right now due to the increased demand from AI and trade tensions between China and The U.S.
I even have a rare-earth watchlist.
There’s a chart of AQMS below.
Every candle represents one trading minute:
There was a lot of good volatility from this stock.
The price spiked 590%* and it followed my trade patterns intraday.
But I don’t like to trade higher priced stocks … And at the beginning of the spike, there’s no way of knowing how far it will go.
Instead, I waited for a smaller stock in a similar sector to run with sympathy momentum.
That’s when I found Avalon Holdings Corporation (AMEX: AWX).
It’s also in the waste management sector, it was cheaper than AQMS, and the chart started to perk up on Tuesday afternoon.
Sure enough, it exploded into the close. And it followed my patterns perfectly.
Read my trade notes below:
Here’s my position overlaid on the chart. Every candle represents one trading minute:
Both trades were dip buys during consolidation that I theorized would turn into breakouts.
I played the first setup perfectly.
On the second trade, I could have held my shares into after hours and sold into the massive squeeze higher. But I had to give a webinar for students, and sometimes the jump into after hours can kill the momentum.
The stock met my goals with a 21% total profit, so I took the money.
These were great trades and a great example of the breakout opportunities in this market.
The Next Sympathy Play
Sympathy runners start to move after a larger stock in their sector runs with intense strength.
AQMS spiked 590%* … That’s intense.
Now, we can trade the initial spike. But as I mentioned, it’s difficult to tell how long the momentum will last.
As a result, sometimes it’s a better strategy to sit back and watch the first runner to build a plan of attack for any sympathy plays.
Sympathy plays:
- Are cheaper than the initial stock spike.
- Have a lower float/market cap.
- Are in the same sector.
There are so many profit angles in the market that new traders don’t know about.
Sympathy plays are just one example.
And once you learn how to navigate this market from front to back, you can trade the momentum anywhere that it shows up.
Next week, October 21 and 22, I’m holding a LIVE conference to teach traders everything they need to know about successful trading.
Two days. My entire trade process. With guest appearances from several millionaire traders.
You’ll never see the market the same again.
Cheers
*Past performance does not indicate future results
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