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Patterns To Watch

Brand New Stock: AI Drone-Defense IPO

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Written by Timothy Sykes
Updated 3/19/2026 5 min read
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A brand new stock just debuted in the hottest sector we’ve seen in years.

It’s an AI drone-defense play in the middle of a war in the Middle East.

And the fact that it’s an IPO makes it even more volatile.

Defense stocks were already moving:

  • Silynxcom Ltd. (AMEX: SYNX) spiked 95%* with news of a new order for its tactical headsets.
  • Peraso Inc. (NASDAQ: PRSO) spiked 165%* with updates about its drone technology.
  • Gaxos.ai Inc. (NASDAQ: GXAI) spiked 102%* with news of a Navy license.

This IPO puts them all to shame…

It’s hands down the hottest stock in the market.

A Global Catalyst

The war in Iran isn’t slowing down.

Every day brings new headlines. And every headline moves the market.

There are two sectors at the center of it all:

  • Oil
  • Defense

WTI Crude oil already crossed $100 per barrel, most recently on March 15 and 16. And U.S. gas prices are up 27% since the beginning of the war, the largest monthly increase since Hurricane Katrina.

When war breaks out in an oil-rich region, the fear of constrained supply drives prices higher.

When a third of the world’s crude oil trade is cut off due to a closure of the Strait of Hormuz…

Expect an extra level of volatility.

See my oil watchlist.

Since the war puts pressure on oil prices, the situation is even more dire. 

Everyone’s affected by the events in the Middle East: every business that relies on deliveries or shipping, and every household with a car.

Suddenly, defense stocks hold new weight…

This is about saving the global economy.

Defense Stocks

The newest IPO that’s spiking right now isn’t an isolated occurrence…

Silynxcom Ltd. (NYSE American: SYNX) announced a purchase order on March 6 that exceeded $620,000. It was from a military in the Middle East for tactical communication headsets.

The stock spiked 95% following the news.

Also on March 6, Peraso Inc. (NASDAQ: PRSO) announced that its 60 GHz millimeter-wave semiconductor technology was selected by InTACT, an Israeli defense contractor, for use in a new drone Identification Friend or Foe system.

The stock spiked 165%* after the news.

On March 5, Gaxos.ai Inc. (NASDAQ: GXAI) announced that one of its main investments, America First Defense, secured a license from the Navy for a counter-UAS system designed to defeat hostile drones.

The stock spiked 102%.*

Three different defense stocks, with three different catalysts, and they all turned into monster spikes.

Now there’s a fourth stock pushing higher…

More Breaking News

And this one just hit the market.

The Newest Drone Defense IPO

The stock is Swarmer Inc. (NASDAQ: SWMR).

Swarmer is a drone autonomy software company that’s actively supporting operations in Ukraine.

Drones are reshaping every active battlefield, from Ukraine to the Middle East. Over the last few years, the demand for autonomous drone systems has evolved into an urgent military requirement.

SWMR already spiked 420%* since it started trading on March 17:

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

And the float is just 5.4 million shares…

When stocks have a low supply of shares (below 10 million), prices spike higher as demand increases.

And because it’s an IPO, there isn’t an established trading range yet. There aren’t any bag holders selling into the spikes.

IPO price action is pure chaos as everyone tries to find a fair trading price. And that chaos creates opportunity for traders who know what to look for…

How To Trade SWMR

The volatility from SWMR is extreme right now.

That’s the nature of a low-float IPO in a hot sector.

Luckily, we can trade this volatility with popular patterns.

The most volatile stocks in the market follow the same basic patterns because people are predictable during times of high stress.

Human emotion doesn’t change. And neither do these patterns.

The setup that’s forming right now on SWMR is the same setup we saw on PRSO, SYNX, and MOBX.

Here’s how I plan to trade it.

Cheers

*Past performance does not indicate 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.
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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”