It’s Tim Sykes here.
We’ve already seen at least two MASSIVE spikes this week from biotech stocks.
And there were profit opportunities from both runners …
Here’s my blog post from November 19 that detailed the spike on HCW Biologics Inc. (NASDAQ: HCWB) earlier this week.
The stock ran 760%* after it announced a new licensing agreement with WY Biotech for a preclinical molecule.
As a part of the deal, HCWB received $7 million in upfront payments plus additional milestone payments and double-digit royalties.
This was a huge catalyst for HCWB.
Plus, it’s in the biotech sector (which is red hot right now) and has a decently low float: 18 million shares.
Stocks with a low float are more volatile because they have a low supply of shares. When demand increases, the price spikes higher.
After seeing HCWB spike 760%* on Monday … A low-float biotech with news …
It’s no surprise that Forte Biosciences Inc. (NASDAQ: FBRX) spiked 210%* on Wednesday …
The Next Biotech Spike
The factors are the same!
Just like HCWB, FBRX is a …
- Low float
- Biotech stock
- That announced bullish news on Wednesday, November 20.
StocksToTrade shows that the float is only 880k shares!
Yesterday morning the company revealed an oversubscribed $53 million private placement from healthcare investors.
In case you were wondering …
We can trade these volatile spikes.
See my post on X below:
Props to all $FBRX longs, now $10/share higher from my buys this morning at $9ish, unreal short squeeze. Thank you over-aggressive short sellers as always for making this happen, everyone should study https://t.co/COEqLl5mXl and capitalize too! WHEWWWWWW! (I must do better too!) pic.twitter.com/LgxUp4xK9T
— Timothy Sykes (@timothysykes) November 20, 2024
I took three trades on this spike.
You can see my trade notes below:
The first thing that you need to do …
Watch for the next low-float biotech that’s spiking with news.
It could be today. It could be tomorrow. It could be next week.
But I assure you … There is another mega spike coming!
Once we find the next spiker, we still have to trade it …
How To Trade These Spikes
The most volatile stocks in the market can follow popular trading patterns …
Because people are predictable during times of high stress. Like when they have cash in a stock that’s spiking +100%.
For a perfect example of this, let’s look at FBRX right after the market opened on November 20 …
Every candle represents one trading minute:
Now, every spike will look a little different.
Don’t expect the next biotech stock to bounce off of $9 like this. But the overall patterns repeat in the market.
There are multiple patterns that my millionaire students and I use to trade. They all occur within a larger framework that you can study HERE.
It takes some time before my newest students are able to trade with these patterns self sufficiently …
Like I said, every spike is a little different. Traders need enough experience to recognize the patterns in real time.
Luckily, you don’t have to trade on your own!
The patterns are always the same, so … How long do you think it would take an AI to learn this process??
The answer is: Only a few months!
I prompted an AI with my profitable trade setups over-and-over again. Until finally, it started calling setups all on its own!
Take a look at one of the trade alerts it sent this week.
My students can find the hottest stock in the market, like FBRX, and prompt the AI with the ticker.
Then, it spits out a trade plan as if they asked me directly!
FBRX closed strong on Wednesday …
>> Type it into the AI for a trade plan TODAY <<
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And I have one more ESSENTIAL TIP to help you trade the next biotech spike:
Get There Early
As you can see from the biotech spikes earlier this week (HCWB and FBRX), the momentum doesn’t last forever.
Both stocks announced news during premarket, and they reached a peak around midday.
Take a look below, every candle represents one trading minute:
HCWB:
FBRX:
There’s always the opportunity for follow-up bounces intraday.
But nothing beats the morning volatility …
Get there early for the best opportunity!
Cheers.
*Past performance does not indicate future results
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