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Short-Week Trading: Major Market Setups

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/31/2024 6 min read
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It’s Tim Sykes here.

Welcome back to the market …

It’s the first day of trading in 2025!

The market was closed yesterday for New Year’s Day. Today, Thursday, January 2 is the first day of trading.

We’re starting the year strong with a short-trading week!

I’m anticipating some big moves today and Friday. Here’s why:

  • The market was hot all of 2024. The S&P 500 ETF Trust (NYSE: SPY) posted its second consecutive 20% yearly gain …
  • The market is riding high on the prospect of a bullish Trump presidency. And his proposed tariffs have yet to affect global trade.
  • The AI sector keeps giving us huge runners. Most recently we saw quantum-computing stocks rocket higher. Ex: Quantum Computing Inc. (NASDAQ: QUBT).

Look at the chart of the 1,800%* spike on QUBT, every candle represents one trading day:

QUBT chart multi-month, 1-day candles Source: StocksToTrade

We can trade this volatility using my popular patterns.

The most volatile stocks in the market, stocks like QUBT, can follow popular patterns because people are predictable during times of high stress.

You’d be stressed too if you had shares of QUBT without any prior trading knowledge … 

How We Trade This Volatility

© Millionaire Media, LLC

There’s a life cycle that these stocks like to follow when they spike higher.

The spikes are unsustainable, but the price action follows a framework that we can use to trade.

It’s called The 7-Step Framework.

QUBT is already following this framework … Compare the daily chart of QUBT to the framework outlined in the link above.

It’s eerie how similar these spikes are.

And it happens over-and-over again.

I stumbled upon the 7-Step Framework when I was in college … More than two decades later, I’m still using it to profit in the market.

And it’s not just me.

Take a look at the posts on X below from traders in our community:

Source
Source
Source

Those are some up-and-coming students …

On the other end of the spectrum … My millionaire students continue to extend their gains.

Take a look at my post below about Matt Monaco:

And I’ve got to mention Jack Kellogg’s success! He passed $14 million in profits in 2024 and he’s closing in on $15 million …

Take a look at his post on X below:

It all starts with the right stocks …

We’re profiting like this because there are huge spikers like QUBT in the market.

Just take it one day at a time! Here’s what to look for right now:

Profitable Stock Spikes

Every day we wake up and look for big stock spikes in the market.

There’s a customized scan that I programmed into StocksToTrade to find these runners. It’s called the Top % Gainers scan.

Here’s what the scan looked like on Tuesday this week, December 31:

At the time of that screenshot, Baird Medical Investment Holdings Ltd. (NASDAQ: BDMD) was the biggest runner of the day.

It spiked 650%* before noon. And StocksToTrade helped us find it before the price broke past $4.

Try StocksToTrade for 14 days NOW!

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

BDMD chart intraday, 1-minute candles Source: StocksToTrade

From $4 to $7 … That’s a 75% trade opportunity.

A $1,000 position would yield $750. In just a few minutes.

That’s the true power behind these stock movements: We don’t have to be in the trade for long. As a result, our market exposure is limited.

Now, it can take time for my students to recognize these opportunities in real time.

That’s why my newest students use AI to track this price action, until they become self-sufficient.

This AI follows my trading framework on the hottest stocks …

>> Prompt the AI with the biggest stock spike today <<

It will spit out a trade plan as if you asked me directly.

Get ready for more opportunities in 2025! We’re seeing new stock spikes every day.

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”