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The U.S.-Defense Stock Spiking +700%

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Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 11/26/2024 5 min read

It’s Tim Sykes here.

Every week we see a new INSANE runner.

Last week it was Exicure Inc. (NASDAQ: XCUR). The stock spiked 570%* over multiple days!

And just recently, we watched ZenaTech Inc. (NASDAQ: ZENA) spike 710%*!

The company announced new business partnerships that will allow it to sell products to U.S. defense branches and NATO forces.

Potential government-defense contracts act as strong catalysts for stock spikes. Especially right now …

  • The U.S. election is causing unavoidable uncertainty in the global theater.
  • Israel is still fighting against Hamas’ existence.
  • Tensions between Russia and Ukraine are growing amid new weapon usage.

Plus, StocksToTrade shows that ZENA has a float of 1.1 million shares. The low supply of shares helps prices spike higher. It’s a simple law of supply and demand.

This stock absolutely exploded on Monday of this week, and I was there to take profits all along the way!

Take a look at my trade notes below:

Source: Profit.ly

My students and I use the exact same patterns to trade the market’s hottest stocks, over-and-over again.

I can teach you how to trade these stocks.

Let’s look at some of the trade opportunities on ZENA from this week.

The more times that you see these setups, the quicker you’ll be able to apply them on your own!

My Trading Patterns

Understand, ZENA is in a different position now than it was on Monday, November 25.

The most volatile stocks in the market go through a life cycle that I’ve termed: The 7-Step Framework.

And the pattern that we use to trade depends on where the stock is within this framework.

That’s very important …

For example, on Monday, I was trading breakouts and regular dip buys.

I wasn’t looking for a panic dip buy from ZENA on Monday. But considering it might be overextended after the 710%* run, now I am looking for a panic dip buy opportunity.

I used to tell my students: “Only focus on one pattern at a time. Too many patterns can be confusing and create harmful stress.”

But in 2024, my students are using AI to track these stocks.

They can trade as if I’m in the room with them, giving them instructions.

And yesterday, my AI trading bot alerted a SOLID trade opportunity on ZENA.

The stock started to base above $5 in the afternoon, our buy signal was $5.20 …

It ran to $12 when the market opened Tuesday morning at 9:30 A.M. Eastern.

Take a look at the trade alert below, every candle represents one trading minute:

ZENA chart intraday, 1-minute candles Source: StocksToTrade

Here’s a multi-day chart of the run:

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

>> Use XGPT To Build Smart Positions On The Hottest Stocks <<

The AI bot helps my students follow these patterns from day one!

What used to take months of studying is now accessible with artificial intelligence … What a world we live in.

Now, let’s take a look at one of my positions on ZENA. Study this price action!

We might not see ZENA follow this pattern again … But the next massive runner is right around the corner.

These patterns repeat in the market.

My ZENA Position

On Monday, the price spiked in the morning, consolidated mid-day, and then spiked higher in the afternoon.

For one of my trades, I bought shares in the afternoon after the stock started to surge.

The price pushed past the morning highs of $2.75 around 12:45 P.M. Eastern. Then the price started to base above $3. That’s when I bought shares and waited for another surge upward.

Here are my specific trade notes:

Source: Profit.ly

Here’s my position overlaid on the chart below:

ZENA chart intraday, 1-minute candles Source: StocksToTrade

We don’t need to catch the entire move.

Instead, we focus on the most predictable* price action and take a chunk of the middle.

Then we move to the next big spiker …

There will be more spikers like ZENA in the next few days. Don’t miss out!

Tune in for the next FREE webinar and stay up to date.

Cheers.

 

*Past performance does not indicate future results


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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”