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The AI Setups I Aim For In The Market

Timothy SykesAvatar
Written by Timothy Sykes
Updated 11/3/2025 4 min read

In this article Last trade Nov, 24 1:46 PM

  • AMZN+1.95%
    AMZN - NYSEAmazon.com Inc.
    $225.00+4.31 (+1.95%)
    Volume:  23.85M
    Float:  9.65B
    $221.50Day Low/High$226.79
  • AREC+1.12%
    AREC - NASDAQAmerican Resources Corporation
    $2.70+0.03 (+1.12%)
    Volume:  4.67M
    Float:  55.29M
    $2.55Day Low/High$2.78

The market ended with a bang last Friday.

And on Monday, the madness continued.

At any given time in this market, there are a couple magnificent-seven stocks that remain strong due to AI momentum.

Right now, Amazon.com Inc. (NASDAQ: AMZN) is leading the drive.

  • Last Friday the company announced earnings that beat expectations.
    • A big contributor was the 20% YoY growth from their cloud-computing business.
  • On Monday the company announced a deal with Open AI and NVIDIA Corporation (NASDAQ: NVDA).
    • It’s a $38 billion deal where OpenAI will run its AI workloads on Nvidia’s GPUs housed within Amazon’s AI servers.

As a result, AMZN’s stock is ripping higher.

There’s a chart of the move below. Every candle represents one trading day:

AMZN chart multi-day, 1-minute candles Source: StocksToTrade
AMZN chart multi-day, 1-minute candles Source: StocksToTrade

The AI momentum in the market is still red hot.

And right now I’m using it to target low-priced runners that spike even higher than AMZN’s monster move.

The spike on AMZN only measures 16%.

I’m looking for stocks that spike +100%.

As a result, I’ve got my eye on a small-cap AI stock, with a history of running, that just woke back up.

A $1.4 Billion Catalyst Just Hit This Stock

© 2025 Millionaire Media, LLC

While Amazon’s grabbing headlines in the big tech sector, there’s a different story that I’m more interested in.

On November 3, American Resources Corporation (NASDAQ: AREC), through its holding in ReElement Technologies, announced a massive $1.4 billion partnership with the U.S. Department of War and Vulcan Elements.

This is a government play in national security and critical minerals. The same critical minerals needed for tech advancements like AI.

As stipulated in the deal:

  • $80 million in funding goes directly to ReElement.
  • The deal includes warrants to the U.S. Department of War.
  • It supports building a 100% U.S.-based rare earth magnet supply chain.
  • It targets 10,000 metric tonnes of NdFeB magnets — used in EVs, AI chips, and defense.

This is exactly the kind of catalyst that can reignite a former runner.

And AREC is no stranger to explosive moves.

History Of Spiking

AREC already ran 720%* in 2025.

The price pulled back to end October. But the rally on November 3 already has the potential of turning into something much bigger. Especially due to the newest government contract.

Rare earth stocks are heating up again as the U.S. scrambles to cut reliance on China, despite the recent trade deal announcement.

And AREC just got a fresh wave of institutional backing from the highest levels of government.

On the AREC chart below, every candle represents one trading day:

AREC chart multi-day, 1-minute candles Source: StocksToTrade
AREC chart multi-day, 1-minute candles Source: StocksToTrade

And AREC is just one of the most recent runners …

Here’s my entire rare-earth watchlist.

I’m watching AREC closely for a potential multi-day move.

  • It’s got a history of running.
  • It’s got trading volume.
  • And it’s got news.

History says this stock can run. Now it’s up to traders to recognize the setup.

>> Get A Custom Trade Plan For AREC <<

And keep an eye out for the next AI-related runner.

In this market, there’s action around every corner.

Cheers

 

*Past performance does not indicate future results


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Author card Timothy Sykes picture

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.
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In this article (YTD Performance)


* 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”

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